Part 3/8:
Acknowledging Structural Issues
One pivotal argument is the recognition of structural economic challenges within Harvard. The university claims to have a massive $53 billion endowment; however, there are questions about its true liquidity. With approximately 80% of this endowment invested in illiquid assets like real estate and private equity, critics argue that the financial health of the institution is overstated and that it is ill-prepared for any potential downturns in its asset values.
Moreover, the burden of nearly $8 billion in debt further complicates Harvard's financial landscape. Critics point out that the reliance on both government funding and alumni donations becomes precarious when coupled with such debt, as these revenue streams can fluctuate and even diminish over time.