When Dorms Mimic Mansions

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

At Princeton, they like to do things in style. One of the newer dorms on the university’s New Jersey campus has triple-glazed windows framed in mahogany.

Princeton — and the rest of America’s elite private universities — can easily afford such exquisite touches. These institutions of higher education are sitting on mountainous caches of cash, as the just-released new annual numbers on collegiate charitable contributions make abundantly clear.

Three elite schools — Harvard, Stanford, and Columbia — each received over $1 billion in new donations last year. The 20 universities with the year’s highest charitable hauls took in 28 percent of the contributions America’s colleges and universities pocketed in 2018. These 20 schools enroll just 1.6 percent of the nation’s college students.

Princeton, according to the latest public figures, holds an endowment worth $23.4 billion, the equivalent of over $2.8 million per student.

Should any of this concern you? Should those mahogany windows particularly bother you in any way? Probably should. You, after all, are helping pay for that mahogany.

Billionaires like former eBay CEO Meg Whitman, the patron of Princeton’s triple-glazed-window dorm, get to deduct off their taxable income the millions they contribute to their elite alma maters. Before last year, Americans with deep pockets could use charitable donations to write off up to 50 percent of their annual income. Today, thanks to the Trump tax cut enacted in 2017, our wealthiest can use those donations to write off up to 60 percent of that income.

In other words, average taxpayers are subsidizing billionaire contributions to “Grand Old Ivy.” For every $1 million billionaires make in contributions, they currently save in federal income taxes — and the federal treasury loses in revenue — $370,000. State governments lose dollars, too.

Sam Pizzigati edits Too Much, the online weekly on excess and inequality. He is an associate fellow at the Institute for Policy Studies in Washington, D.C. Last year, he played an active role on the team that generated The Nation magazine special issue on extreme inequality. That issue recently won the 2009 Hillman Prize for magazine journalism. Pizzigati’s latest book, Greed and Good: Understanding and Overcoming the Inequality that Limits Our Lives (Apex Press, 2004), won an “outstanding title” of the year ranking from the American Library Association’s Choice book review journal.

Posted In: Allied Approaches

Union Matters

Steel for Wind Power

From the USW

From tumbledown bridges to decrepit roads and failing water systems, crumbling infrastructure undermines America’s safety and prosperity. In coming weeks, Union Matters will delve into this neglect and the urgent need for a rebuilding campaign that creates jobs, fuels economic growth and revitalizes communities. 

Siemens Gamesa last month laid off 130 workers at its turbine blade manufacturing plant in Iowa, just months after GE Renewable Energy decided to close an Arkansas factory and eliminate 470 jobs.

The companies reported shrinking demand for their products, even though U.S. consumption of wind energy increases every year.

America’s prosperity depends not only on harnessing this crucial energy source but also ensuring that highly skilled U.S. workers build the components with the cleanest technology available.

Right now, the nation relies on imported steel and turbine components from foreign manufacturers like China while America’s own steel industry—well equipped for this production—struggles because of dumping and other unfair trade practices.

Steel makes up the bulk of turbine hubs and the wind towers themselves. It’s also used to make the cranes and platforms necessary for installing the towers.

Yet the potential boon to America’s steel industry is just one reason to ramp up domestic production of wind energy infrastructure.

American steel production ranks among the cleanest in the world, while China has the highest carbon emissions of any steelmaking nation and flouts environmental regulations.

The nation’s highly-skilled steelmaking workforce must play an essential role in the deeply-needed revitalization and modernization of the nation’s failing infrastructure. Producing the components for harnessing wind energy domestically and cleanly is an important step that will put Americans to work and position the United States to be world leaders in this growing industry.

 

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There is Dignity in All Work

There is Dignity in All Work