May 29, 2024

Land, Endowments, and Ethics: Unpacking the Historical Legacy of UC Real Estate Investments. A Conversation with Samuel Feldblum, John Schmidt, and Abbie Cohen

49 minutes

Recent campus protests have focused new attention on university investment policies. The call for greater transparency and divestment from Israel has led to questions about the growth and composition of large university endowments, including that of the University of California (UC).

How did the UC system achieve its robust financial position? One answer lies in its deep-rooted connection to land. The Federal Morrill Act of 1862 provided land grants to public universities to establish campuses, a foundational act that has led some to label these state institutions, including the UC, as a "land grab" institution.

In this week’s episode of then & now, we delve into this complex history with insights from UCLA researchers and Ph.D. students Samuel Feldblum, John Schmidt, and Abbie Cohen. They discuss their newly released report, "Selling Sunset and Land at the University of California," published by the Luskin Center for History and Policy. The episode explores the UC's significant investment in Blackstone, a real estate trust that generates profits by raising rents and housing prices—outcomes that have a direct impact on many UC students and faculty.

The conversation prompts an examination of the UC system's funding history, its investment strategies, and the ethical implications of its financial decisions. Can the UC system align its investments more closely with the public interest, potentially providing affordable housing for its students? This episode encourages listeners to reflect on the balance between financial strategy and social responsibility within the realm of higher education.

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