The stark reality of the situation, which has been swept under the rug continuously for more than 50 years, is that Harvard economists are leading the entire free world down a dangerous path of "self-destruction by debt." Far from being top-notch examples of classical liberal economics, Harvard's economists and administrators have become freedom's greatest enemies. They promote exactly the kind of deficit spending, government dependency, and high taxation which have led to the ruin of modern Greece. Can anyone count on Greece to stand up for freedom against tyrants like Syria's Assad or Joseph Kony? I think not.
The culture of debt permeates every aspect of university life in Cambridge. It can be seen in the office of Daniel Shore, CFO of Harvard. It can be seen in the teachings of a large majority of the professors, especially those in the economics department, where they continuously promote and condone the use of federal debt outside the classroom, through publications, television appearances, and prominent roles in US government. It also infects many Harvard students who, following the irresponsible example of their professors, graduate with excessive personal debt, leaving them financially hobbled and more likely to promote the use of debt in the organizations they later join, like Lehman Brothers, Bear Stearns, and American International Group. Like a highly contagious disease, it has spread from Cambridge to Washington and infects many of the other institutions that lie inbetween the two.
The culture of debt began with the misguided teachings of John Maynard Keynes in the 1950's, which have created a self-reinforcing long cycle of federal dependency. Federal dependency weakens the broader economy and inflates the cost of living for those hard-working Americans who are not dependent on federal handouts. It reduces both the number of private sector jobs and the living standards of those who work in them. This self-destructive, multi-generational debt cycle is supported and reinforced by an administrative bureaucracy and a majority of professors, all of whom benefit personally from the deficits in the form of higher salaries and benefits at Harvard.
Also guilty of reinforcing the "culture of debt" and the "culture of federal dependency" are some of the most prominent media establishments. Falsely labelled as an "independent media outlet", NPR is just like the Harvard professors it so often references in its programming. It is dependent on the federal government. How can a media outlet possibly be true to its constitutional role of providing a check against the power of government, when the government is paying a significant portion of its annual budget? That arrangement is more reminiscent of Soviet Communism, with its state-run media, than it is of the US Founders' intent for the important role of the Free Press in America. And, look at US News and World Report. It reinforces the culture of federal dependency in its widely watched rankings, where it counts professor pay as one of the key metrics.
This culture of fiscal irresponsibility, excessive debt, and federal dependency must end; and the change must begin at Harvard. The deficits, both at Harvard and at Treasury, are unsustainable; the macro-economic effects are erosive; and academic quality is adversely impacted by the corruption inherent in dependency on federal dollars.
Harvard, and other institutions of higher education, would do well to follow the lead of so-called "work-study" colleges, like College of the Ozarks - an institution that shuns all federal aid and student scholarship money. Students are required to work, during their studies, in order to pay for their tuition; and the vast majority of students (all of whom come from disadvantaged families) graduate without a penny of debt. Even the small minority that do accumulate some debt for a car generally keep it well under $10,000.
With federal dollars removed from the equation and students working reasonable hours, salaries and tuitions at Harvard should then be set according to free market principles. This probably would result in salary cuts and tuition increases in the short term. So be it. The long term benefits in the character of the Harvard community, as well as the high profile example of fiscal discipline, would far outweigh any complaints that may arise in the short term. After all, what are the complaints of a few Harvard professors compared to saving the USA from a fate like that of Greece?
With federal dollars removed from the equation and students working reasonable hours, salaries and tuitions at Harvard should then be set according to free market principles. This probably would result in salary cuts and tuition increases in the short term. So be it. The long term benefits in the character of the Harvard community, as well as the high profile example of fiscal discipline, would far outweigh any complaints that may arise in the short term. After all, what are the complaints of a few Harvard professors compared to saving the USA from a fate like that of Greece?
