The Rich and Higher Education

Wealthy donors may be the last check on ideological conformity in universities.

John McGinnis has said that the rich help society, especially colleges and universities. His new book, Why Democracy Needs the Rich, argues that wealthy individuals continue to shield higher education from a complete takeover by leftist ideological conformity. Because they are financially independent and not bound by contracts, tenure, or ostracization, they have challenged the intelligentsia, strengthened ideological diversity, and prevented the growth of bureaucracy.

McGinnis labels journalists, academics, and entertainers as the intelligentsia, groups of highly educated people who greatly influence American politics and culture. Their defect is that they misunderstand human nature. They try to perfect humanity via government intervention, wealth redistribution, and collectivism, not realizing that equality of conditions means everyone will be equally miserable and poor. He says the intelligentsia “often focuses on abstract ideals of how society should function, with less consideration for the practical realities and constraints of change.” He is right. Journalism has become the diary of the bleeding-heart liberal, academia has turned into boot camp for social justice warriors, and the entertainment industry is so far removed from reality that it is laughable.

The intelligentsia has found a haven in American universities, intellectual bubbles of theory and abstraction about how humans should behave. McGinnis continues, “While journalists describe the world, academics model it, and artists and entertainers imagine it, they rarely handle the concrete execution of plans in business or government.” And so, the rich step in. They understand free-market systems and the effects public policies have on regular people. The rich do not try to perfect human nature: they take risks, adapt, and create solutions that help the most people. The rich have their wealth as a result of ideas that work well. It is data that proves theories incorrect. And if the intelligentsia responds critically, it still will not affect the wealth of the rich.

McGinnis then turns his attention to the major donors at American universities. Donors hold tremendous power. The purpose of elite American universities was once the prioritization of scientific education that supported discovery and the pursuit of truth, along with the preservation and dissemination of American history and Western civilization, the knowledge that effectively prepared students to be responsible citizens. He says if universities have abandoned this purpose, pull your money out. He writes, “Wealthy donors and patrons, with their financial resources and social clout, possess the unique ability to intervene, fostering debates and refocusing attention when an organization strays from its intended purpose.” Donors at Harvard, Columbia, and the University of Pennsylvania set a precedent after the leaders of their universities refused to condemn anti-Semitism on campus. Within weeks, these universities lost millions.

If major donors still want to support universities, their money is better spent funding independent centers. McGinnis praises the James Madison Program in American Ideals and Institutions at Princeton, the William F. Buckley Jr. Program at Yale, and the Benson Center for the Study of Western Civilization at the University of Colorado. The rich also have the means to open new universities, such as the University of Austin. Hillsdale College prides itself on not receiving any government funding while offering students generous scholarships, and both the University of Austin and Hillsdale College are refuting postmodern trends such as wokeness and cancel culture. This is the spirit of creativity and disdain for entrenched bureaucracy that American higher education has lost.

Speaking of bureaucracy, McGinnis criticizes the inefficiency of the modern American university, a sort of miniature-scale government. Universities with billion-dollar endowments beg for more money, more staff, and more programs for administrative spending, often outweighing their instructional costs. But much like government programs, once a university begins a new initiative, even if it does not work, it is difficult to get rid of. The rich, knowing what works and what does not, will not waste their time and resources on ideas that reap no rewards.  

McGinnis ends by sharing a warning with us. He says,

Today’s elite graduates from such humanities programs are tomorrow’s human resource managers. They enter the workforce already inclined to support and expand programs of diversity, equity, and inclusion (DEI) within corporations and nonprofits. Thereby extending the identity politics of the campus into society at large. The intellectual currents that begin in academia wash outward, subtly but powerfully reshaping the landscape of American life.

The radical ideology of the far left is already well entrenched in American culture, thanks to higher education. The rich have an important role to play to counterbalance the absurdity seen today. They will continue to challenge the accepted narrative of the intelligentsia, invest in programs and universities with high standards, and trim the fat off the administrative behemoth.

  1. The idea that “The rich do not try to perfect human nature: they take risks, adapt, and create solutions that help the most people. The rich have their wealth as a result of ideas that work well.” feels inherently flawed and, frankly, irresponsible. The continued consolidation of wealth over time suggests otherwise, pointing instead to systems that preserve and concentrate power rather than broadly distribute opportunity.

    There is also a contradiction in the claim that wealthy individuals are protecting universities from government influence while simultaneously acknowledging that a small number of donors can exert enormous control over those same institutions. That dynamic does not represent protection. It reflects a shift in influence from public accountability to private power.

    More broadly, this perspective reads less like an objective observation and more like a defense of entrenched interests. It risks dismissing or undermining journalism, academia, and the arts, fields that often play a critical role in examining and exposing the very systems that enable and sustain concentrated wealth and power.

  2. First, I challenge the presumption that the rich of today have their money as a result of “ideas that work well.”

    That would be the case in a true free market, but we haven’t lived in anything near that in over a century. Today we have subsidies, set asides, bailouts, cost shifting, and “too big to fail.” The money is made on Wall Street (and Capitol Hill), not Main Street, and the for-profit businesses have increasingly been replaced by the (purportedly) not-for-profit business, the non-profit organization, and the NGO.

    Half of the real estate in Amherst, Massachusetts is non-taxable, and it isn’t the colleges as much as a mosaic of non- profits supporting all kinds of left leading causes. And you can make good money doing good, real good money doing good — well into six figures good money. This is how New York City can manage to spend $81,000 a year on each homeless person in the city — and that’s just for a shelter, it doesn’t include the EMS, emergency room, and law enforcement expenses, all of which are significant. (Narcan alone ain’t cheap…)

    Throughout the 19th Century there were “panics“ when only those with the best ideas survived, with new businesses sprouting afterwards in the recently tilled soil. Franklin Roosevelt thought he had a better idea in 1932, but as Ashley Shlaes wrote in _The Forgotten Man_, a lot of people with good ideas got forgotten in the process.

    Chrysler was bailed out in 1979 and 2008, and still went bankrupt in 2009. Government Motors (aka GM) did as well — in a sellout to the progressive left. The whole thing was a charade, with changes in the bankruptcy laws that will come back to haunt us in a future recession; but as Michelle Bachmann pointed out, dealers who supported Democrats got to keep their dealerships, dealers who supported Republicans tended to have them stolen from them.

    We have a very different group of “rich“ people today than we would have had AIG been allowed to go bankrupt, as it should have been. Look at where money is being made today — law, finance, tech, and biotech/pharma. Look at how much money was made, and who made it, during Covid. And look at the number of large corporations now being run by the children or grandchildren of the man who founded them.

    MY POINT IS that I don’t believe that the current cadre of “rich” are willing (or perhaps able) to support the values of the Western Christian Liberal Enlightenment.

    Instead, I argue, they support all of the current foolishness either because they actually believe it, or (more likely) because it’s social acceptable to believe it. They want to get invited to all the fancy parties, they want the accolades in the media, and they absolutely do not want to punished by the radical left. Hence their souls are trapped in the ice of Lake Cocytus, and they don’t even understand the reference.

    This too will pass, in with a country $39 trillion in debt and a Social Security trust fund soon to be insolvent, it may pass sooner rather than later. But right now the richer either happy with the way things are, or not willing to draw the fire from the left by advocating reform.

    And I’m not convinced that our current wealthy class “have ideas that work well.“ Not all of them…

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