While California’s public schools are bracing for budget cuts, some of the country’s richest prep schools are feeling flush. According to the New York Times, both Andover and Exeter posted more than 20% gains on their already sizeable endowments last year, despite a looming recession and a sluggish stock market.
The secret to their financial success? Well-connected alumni. Both schools are famous breeding grounds for future Wall Street tycoons. And after Andover and Exeter grads make their fortunes; they give back to the alma mater – not just with donations, but also with investment advice. With big-name investors minding their portfolios for free, these schools make a killing, which allows them to spare no expense as they train the next generation of Wall Street tycoons. Bowles and Gintis couldn’t have invented a more apt example of social reproduction in American education.