From today’s Wall Street Journal, an interview with George Gilder, Sage in the Machine by Tunku Varadarajan
America’s university system, says Mr. Gilder, is “incredibly corrupt and ideological.” How did it come to be like that? Surely, I observe, it wasn’t that way when he graduated from Harvard in 1962. “It was beginning to get that way,” he says, as he revs his engines for a fresh sortie. “The rise of affluence through the 1960s created this kind of amazing irresponsibility that resulted in a whole generation losing track of reality.”
The pithy aperçu is Mr. Gilder’s forte. He tells me here that “human beings have a propensity to believe in leftism”—in the idea that government can “answer all of their problems, guarantee their future, and relieve them of the challenges of life.” The idea of a “completely providential government” arose in America, and a “whole generation of young people were given college loans in a fabulous national mistake, in which the Republicans participated.” These loans were used by the university system to “increase perks and tenured luxuries and ideological distractions”—all of which led to the “diversity campaigns and CO2 panics” that currently dominate university faculties.
The only way to undo this “vast blunder,” says Mr. Gilder, is to forgive student loans across the board and “extract the money from all the college endowments and funds that were used to just create useless departments and political campaigns.” More than $1.5 trillion in student-loan money is outstanding, according to the Federal Reserve. That money, Mr. Gilder says, “wasn’t deployed to improve education. Not a scintilla of evidence has been adduced that learning has been improved. It was used entirely to lavish on bureaucracies that, in turn, paid tribute to government and leftist nihilism.”
The impact of these loans, and of the academic ecosystem they engendered, has been catastrophic, in Mr. Gilder’s view. “The result was to destroy the entrepreneurial optimism of a whole generation of young people, to drive them toward socialism, which they now tend to favor, and to even dissuade them from marriage.” The last is a consequence of debt, “which cripples them for the future.” Any benefit that education might confer on the young is, in Mr. Gilder’s dark view, nullified by the economic burden inflicted on them, which “leaves these kids impotent in the world.”
The student debt is a catastrophe. I like the idea of offsetting it with endowments, but I doubt if they will ever be able to do this legally. At best they could reduce the tax aversion of endowments and use that income to offset student loan losses.
Endowments should have some skin in the game on student loans.
The losses on the student debt is inevitable. Our refusal the recognize it, own it, and solve it is political malfeasance of the highest order.