Harvard and Yale Need Their Giant Piles of Money

People who say that universities should spend down their endowments don't understand what endowments are for.

It's the time of year when top-tier universities update us on the state of their endowments, and it hasn't taken long for misinformed commentary to emerge. Jordan Weissmann writesat the Atlantic that universities have too much money and should be forced to spend down their savings. This is a bad idea that would defeat the entire purpose of having an endowment and undermine the staying power of our best educational institutions.

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