Sunday Cartoon Blogging – August 23, 2015

Another bad week for many people in the public eye. But let’s start with Malcolm Gladwell’s rant in the NYT about university endowments in which he focused on Yale’s endowment. He says:

Last year, Yale paid about $480 million to private equity fund managers as compensation — about $137 million in annual management fees, and another $343 million in performance fees, also known as carried interest — to manage about $8 billion, one-third of Yale’s endowment.

He tells us that, of the $1 billion the endowment contributed to the university’s operating budget, only $170 million was earmarked for tuition assistance, fellowships and prizes. He reported that private equity fund managers also received more than students at four other endowments; Harvard, the University of Texas, Stanford and Princeton.

He makes another great point, that university endowments are exempt from corporate income tax because universities support the advancement and dissemination of knowledge. The tax advantage also benefits the fund managers whose carried interest is taxed at lower capital gains rates rather than ordinary income rates. It isn’t a coincidence that hedge fund managers return the favor to their large university clients. Kenneth C. Griffin gave Harvard $150 million in 2014. This year, Stephen A. Schwarzman, the chairman of the private equity giant Blackstone, pledged $150 million to Yale toward a new student center. John A. Paulson, another hedge fund manager, topped both when he gave Harvard $400 million in June.

Maybe these university endowments need to do more to support students and faculty, and less to support fund managers, if they are to keep their tax-exempt status.

On to cartoons. With the email server and new polls, Hillary did not have a good week:

Maybe if the Obama years hadn’t decimated the Democratic bench for an entire generation, we wouldn’t have to rely on two senior citizens slugging it out for the chance to call the White House their retirement home.