The Billionaire Boys: Reinvesting A Small Percent of the Spoils of Capitalism

The political philosopher Benjamin Barber may be a little theoretical for the general reader, but he really gets what’s happening these days:   “We can be glad Carnegie built libraries, glad that the Gateses are battling AIDS, but inequality will not end because billionaires give back some of the spoils of monopoly.” (Consumed, p. 77) “Philanthropy is a form of private capital aimed at achieving public outcomes, but it cannot substitute for public resources and public will in confronting public calamities… Rescuing victims through individual philanthropy cannot be a substitute for helping citizens avoid victimization through effective public governance in which citizens share real power.” (Consumed, p. 131)

In his blog this week, the Rev. John Thomas, former General Minister and President of the United Church of Christ and now a professor and administrator at Chicago Theological Seminary, examines the role of mega-philanthropy and the power of the people the education historian Diane Ravitch has dubbed “the Billionaire Boys Club.”

Rev. Thomas names the ethical contradiction embedded in today’s venture philanthropy: “First, the concentration of philanthropic capacity in the hands of a relatively few white men is fueled, in significant measure, by tax policies that favor the already wealthy at the expense of public coffers, policies that are enacted by politicians beholden to the gifts of those same wealthy few… In addition, these policies are frequently fronts for an anti-government and anti-union bias which dismisses the role of public initiatives… in favor of a benevolent paternalism.”  One reason the Billionaire Boys have so much to invest through their mega-foundations is that tax cuts at the federal and state level have been tilted to favor the extremely wealthy and burden those whose incomes are far lower, exacerbating inequality and the plight of those at the bottom of the economic pyramid.

Rev. Thomas identifies three problems embedded in venture philanthropy. (Rev. Thomas attributes the identification of these problems to Lester M. Salamon,  Director of the Center for Civil Society Studies at The Johns Hopkins Institute for Policy Studies.)   The first is philanthropic particularism, which Rev. Thomas defines as: “the tendency for givers to  focus on particular groups that appear to be ‘deserving.’ But of course that calculation is colored—let’s use this term deliberately—by social location.”  Rev. Thomas is very clear about the social location of the wealthy white men who control this conversation.

The second is philanthropic paternalism.  Rev. Thomas writes: “Philanthropists today focus on the outcomes they deem appropriate or interesting, either creating the organizations that will advance those outcomes, or bending the traditional missions of established institutions to fit their agendas.  As control of philanthropic resources is more and more concentrated… money is more and more channeled toward the passions of a few individuals….”

And finally, there is philanthropic insufficiency.  According to Rev. Thomas:  “Particularly in times of economic recession, and an attendant agenda of government austerity, the voluntary sector becomes incapable of matching what has been lost by the deliberate gutting of the public treasury to be used for broad purposes.” However well intentioned, charity cannot replace systemic justice.

Writing for Dissent Magazine, Joanne Barkan has detailed how all this affects public education: “The cost of K-12 public schooling in the United States comes to well over $500 billion per year.  So, how much influence could anyone in the private sector exert by controlling just a few billion dollars of that immense sum?  Decisive influence, it turns out. A few billion dollars in private foundation money, strategically invested every year for a decade, has sufficed to define the national debate on education; sustain a crusade for a set of mostly ill-conceived reforms; and determine public policy at the local, state, and national levels.  In the domain of venture philanthropy—where donors decide what social transformation they want to engineer and then design and fund projects to implement their vision—investing in education yields great bang for the buck… But three funders—the Bill and Melinda Gates Foundation, the Eli and Edythe Broad… Foundation, and the Walton Family Foundation—working in sync, command the field…  Meanwhile, evidence is mounting that the reforms are not working… Gates and Broad helped to shape and fund two of the nation’s most extensive and aggressive school reform programs—in Chicago and New York City—but neither has produced credible improvement in student performance after years of experimentation.” (Just last month this blog covered  Lindsay Layton’s Washington Post piece exposing the role of the Gates Foundation in underwriting all aspects of the development and promotion of the Common Core Standards and tests.)

Barkan describes the interests and passions in which the three giants of education philanthropy have been dabbling: “choice, competition, deregulation, accountability, and data-based decision making.  And they fund the same vehicles to achieve their goals: charter schools, high-stakes standardized testing for students, merit pay for teachers whose students improve their test scores, firing teachers and closing schools when scores don’t rise adequately, and longitudinal data collection on the performance of every student and teacher.”

The fact that the Billionaire Boys can buy an extensive and long-running public relations and media campaign is one reason we haven’t had a thorough public conversation to compare the experiments of the philanthropists with our historic system of public education—publicly funded, universally available, and accountable to the public.  We ought to be asking which sort of schools do a better job of balancing the needs of each particular child and family with the capacity to secure the rights and address the needs of all children.

2 thoughts on “The Billionaire Boys: Reinvesting A Small Percent of the Spoils of Capitalism

  1. Pingback: The Billionaire Boys: Reinvesting A Small Percent of the Spoils of Capitalism | janresseger ← NPE News Briefs

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