Summary by John Gibbs

 

 

David Horowitz, “Billion Dollar Brains,” Ramparts, #8, 1969

 

 

The Main Point

 

The development of the modern American university was molded by the power wealth and its owner’s control.  This article, through example, illustrates how capital investment of large investors was/is able to shape higher education and policy research by controlling the institutions much like a large corporation.

 

“I beg you to consider: if this is a firm, and if the Board of Regents are the Board of directors…then…the faculty are a bunch of employees and we’re the raw material.” 

 

 

Summary

 

College vs. University

 

Prior to the Civil War, colleges were small and more directed to their principle function as finishing schools and theological seminaries for the upper class.  During the industrial revolution when wealth was expanded to many people, industrialists readily gave charitable donations to technological institutes who would retain their name and endorse the technical process that would keep the “money mills rolling.”  These wealthy businesspersons and industrialists had now become “entrepreneurs” of higher education.  With more money being received and with pressure form their contributors, colleges were forced into expansion.  This expansion yielded the modern day university.

 

Education Reform 

 

“The very ambition of such corporations to reform educational abuses is itself a source of danger.  Men are not constituted educational reformers by having a million dollars.”

 

While not trying to directly alter higher learning in American institutions, foundations like the Rockefeller and Carnegie foundations imposed great influence by exerting power through their wealth.  Their ability to influence came largely from being the largest single contributors of endowment funds.  “By 1931-2, it was estimated that the foundations had directly stimulated the giving of $660 million, or fully two-thirds of the total endowment of all American institutions of higher learning – colleges, universities and professional schools.”  During this time, Carnegie decided to provide all college teachers with free pensions.  Due to the confusion of the time and since no institution that wanted to attract or retain quality teachers could refuse the offer, the foundation set guidelines as to what defined a college and imposed a general system of standards on American institutions of higher learning. 

 

From the Top, Down

 

The American system of higher education is “a highly centralized, pyramidal structure in which the clearly defined escalating heights intellectually dominate the levels below.”  Within the more than 2000 colleges and universities, 75 per cent of the PhD’s are awarded in only 25 of them.  These 25 form a somewhat “tight-knit intellectual establishment” which produces PhD’s with similar ideas about what their field covers, how it should be taught, and how to advance it.  Responsibility for such a system lies with the foundations that shaped the system.  In the beginning of the university era, the great foundations created a “lead system” of colleges, by virtue of prestige who would set the standards for the rest of the educational system.  Therefore, much of the two-thirds of the total endowment went to this lead system.   

 

 

 

David Horowitz, “Sinews of Empire,” Ramparts #7, October 1969

 

Main Point

 

This article studies how specialist in fields of international policy created, with the assistance of the Ford Foundations and others, “area studies” in some centralized institutions to gather information and produce experts in the fields. 

 

Summary

 

Creation of “Area Studies”

 

During World War II, intellectual elite were often mobilized into assisting the government and putting itself at the service of Washington in regards to foreign matters.  After the war, this same interest in assisting the government was moved into a permanent role in the form of institutions at the universities.  International policy disciplines and “area studies” (e.g. African studies) were given buildings, libraries, and computer technology.  Supporting the new intellectual drive were large foundations, namely the Ford Foundation, who provided funds for the staff salaries, libraries, physical facilities, and financed the students and trainees as well.  Just as the “lead system” mentioned in the previous Horowitz article, the same was represented in the new fields of study as well.  “In 11 of the top universities with institutes of international studies, a single foundation, Ford, is the principal source of funds.”  Such schools were given access to the university presses, which helped to organize influence within the academic university. 

 

Government Benefits

 

Colombia’s School of International Affairs is a prime example of the governments need and dependence upon the schools and the funding foundations.  In 1968 the director of the School “revealed that 40 per cent of the School’s graduates go directly into government service.”  Then director of the CIA, Admiral William Ranborn: “…in actual numbers we could easily staff the faculty of a university with our experts.  In a way we do.  Many of those who leave us join the faculties of universities and colleges.  Some of our personnel take a leave of absence to teach and renew their contacts in the academic world.  I suppose this is only fair; our energetic recruiting effort not only looks for the best young graduate students we can find, but also picks up few professors from time to time.”  While the institutions are not under the direct constraints of the federal government, they do coexist harmoniously with both sides feeding from the other.