Conservatives complain too much about welfare—except where it counts

Welfare comes to many, not just the poor. Princeton University is highly invested in the success of capitalism with an endowment of $17 billion, or about $2 million per student. Even so, it received approximately $54,000 per student in 2011 from the federal government--you and me. Richard Vedder, Bloomberg.com, Mar. 18, 2012.

‎"In 2002, Meg Whitman, now the chief executive officer of Hewlett-Packard Co. and a former CEO of EBay Inc., made a $30 million gift for what is essentially a luxury dorm (Whitman College) at Princeton that probably netted her a tax break of $10 million or so. Less opulent residences at the College of New Jersey lack such rich private funding. One could argue that this is the equivalent of building public housing for the rich. "

http://www.bloomberg.com/news/2012-03-18/princeton-reaps-tax-breaks-as-state-colleges-beg.html

“It's unlikely that more money has ever been lavished on the education of so few. Even as Ivy Plus budgets have spiraled upward, the schools' enrollments have barely budged. From the 1997-98 academic year through 2006-07, graduate enrollment at the 10 institutions inched up by 10%, to 55,708, while the number of undergraduates actually fell by 1.4%, to 68,492.

Meanwhile [2007], the wealth gap between the Ivies and everyone else has never been wider. The $5.7 billion in investment gains generated by Harvard's endowment for the year that ended June 30 exceeded the total endowment assets of all but six U.S. universities, five of which were Ivy Plus: Yale, Stanford, Princeton, MIT, and Columbia. Ivy dominance extends to fund-raising. A mere 10 schools accounted for half the growth in donations to all U.S. colleges and universities last year. All of the top five on the list were Ivies, led by Stanford, which set a record for higher education in 2006, collecting $911 million in gifts.”

http://www.businessweek.com/magazine/content/07_50/b4062038784589.htm

Museums Get University Bailouts

Another segment of our society who thought the bubble would never burst--private art museums. In today's WSJ we find that Magnes Museum is giving away its entire collection of prized Jewish art. Judah Magnes, for whom it is named, was a former Oakland, California resident who became a renowned rabbi, lecturer, political activist, and co-founder of Israel's Hebrew University. It was started in 1960 by the Fromer family. There is an interesting timeline (leaving out the bubble and the endowment problems) can be found at the website.



"Many museums took on debt to finance these activities (expansions)—only to have the floor fall out from under their endowments in 2008 when the market crashed. Last year, the Gulf Coast Museum of Art in Largo, Fla., shut its doors and gave its 435-piece collection of contemporary Florida art to St. Petersburg College, after seeing its $8 million endowment shrivel to $500,000." You've got to have some pretty risky investments to have your endowment shrivel that much. So there's probably a lot more to be told about the investment advisors these museums are using.
The Magnes Museum in Berkeley, Calif., and the Museum of Contemporary Craft in Portland, Ore., Get University Bailouts - WSJ.com

Crimes against humanities

"The economic downturn is having a dramatic and deleterious effect on historical societies, libraries, museums and other cultural institutions around the country. A combination of plunging endowments, reduced grant and foundation support, and budget cuts on the federal, state and local levels has led to job losses, service cuts, and outright closures from coast to coast." There's more.

And with Democrats hunting down the "rich" to hound them at every turn--health "reform," cap and trade--destroying the people who create jobs, and inviting the unions to a job summit, we can expect even more institutions that depend on donations and charity to struggle, cut hours, or close.

Curses to use for those who might misuse a gift or endowment

At lunch today a group of retirees were discussing what becomes of gifts and endowments to universities and cities whether they be for a building, a library or landscaping. I for one wouldn't give a penny to any institution to name or build something, because as soon as the last relative who could object has faded from view, it is bulldozed, moved, renamed, or merged.

In the 10th century the Abbey of Cluny was established with donations from William I the Pious, duke of Aquitaine and count of Auvergne and his wife Ingelberga. You can see the charter at Medieval Sourcebook. It has some magnificent curses on those who might misuse the gift for anything other than his intent. Perhaps when you donate land, houses, or memorials to honor a loved one or yourself, you might throw in some of these curses in the agreement.

"If anyone - which Heaven forbid, and which through the mercy of God and the protection of the holy apostles I do not think will happen - whether he be a neighbour or a stranger, no matter what his condition or power, should, though any kind of wile, attempt to do any act of violence contrary to this deed of gift which we have ordered to be drawn up for the love of almighty God and for reverence of the chief apostles Peter and Paul; first indeed let him incur the wrath of almighty God;

and let God remove him from the land of the living and wipe out his name from the book of life, and let his portion be with those who said to the Lord God: Depart from us; and with Dathan and Abiron whom the earth opening its jaws swallowed up, and hell absorbed whill still alive, let him incur everlasting damnation.

And being made a companion of Judas, let him be kept thrust down their with eternal tortures, and, let it seem to human eyes that he pass through the present world with impunity, let him experience in his own body, indeed, the torments of future damnation, sharing the double disaster with Heliodorus and Antiochus, of whom one being coerced with a sharp blow scarcely escaped alive; and the other, struck down by the divine will, his members putrefying and swarming with vermin, perished most miserably.

And let him be a partaker in with other sacrilegious persons who presume to plunder the treasure house of God; and let him, unless he come to his senses, have as an enemy and as one who will refuse him entrance in the blessed paradise, the key-keeper of the whole hierarchy of the Church, and joined with the latter, St. Paul; both of whom, if he had wished, he might have had as holy mediators for him. But as far as the worldly law is concerned, he shall be required, the judicial power compelling him to pay a hundred pounds of gold to those he has harmed;

and his attempted attack, being frustrated, shall have no effect at all. But the validity of this deed of gift, endowed with all authority, shall always remain inviolate and unshaken, together with the stipulation subjoined."