The Misuse of Money

I see that David Rockefeller has pledged to give $100 million to Harvard University, a university that has an endowment of $28 billion and that spends only an infinitesimal part of this endowment (rumored to be about 5%) while it earns interest in the double digits (close to 17% in 2006). Education is surely a worthy cause and I’d be the last to suggest that education is not the place for philanthropy. And I think it’s a good thing that a large part of this $ will go to cultural studies. But couldn’t that money have been better spent on colleges and other educational institutions that really need it? Does a university with an endowment of $28 billion really need another $100 million? I think not. And I think that donations like this should not be viewed positively (as does the press and, I fear, the general public) but rather as the poor use of money that it is.