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Every time endowment-return news comes out, everyone seems to jump into a pool of ignorance about how endowments work. The third graf of this story explains it, but in a kind of boring way. Imagine asking, “Bank of America has $2 trillion in deposits. Why is my checking account still $3,000?”

nytimes.comHarvard Endowment Soars to $68 Billion Even as Federal Cuts Force Layoffs (Gift Article)The stock market has boosted Harvard’s wealth. But as federal funding slumps, the school is seeking corporate sponsors to underwrite research.

Ian Bogost

@ibogost.com

In fairness, this is one of those many ignorances universities themselves are guilty of promoting, because it feels good to say "$68 billion endowment."

15/10/26, 7:45 pm0 reposts5 likes

Ian Bogost

@ibogost.com

I really shouldn't be posting. So, before you bite my head off, I'm well aware that universities like Harvard (and mine) make deliberate decisions about what to invest in and what to let die off. That doesn't make an endowment a general pool of discretionary money, either.