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Unleash Prosperity Hotline — Weekend Edition
Issue #1251
04/25/2025 – 04/27/2025
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1) Poisoned Ivy
President Trump's spat with Harvard rolls on. Yesterday, he castigated Harvard as a "far left Institution," and a "liberal mess." Harvard's president has self-righteously accused Trump of violating the university's free speech rights by withholding $2 billion of federal subsidies to the college.
The obvious solution here is for Harvard to go the Hillsdale College route and turn down any further federal funding. Then they can say or do whatever they want.
But the real financial scandal exposed here is that a university with a $50 billion+ tax-free endowment receives billions of dollars a year of taxpayer money.
Why?
This is Robin Hood in reverse: tax the poor and give to the ultra-rich.
Harvard doesn't need financial help. Here is a graph of Harvard's endowment over the last several decades.
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And here is a graph of what has happened to tuition at Harvard. The endowment hasn't reduced the average tuition by one thin dime.
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While the university amasses one of the most bountiful treasure chests on the planet, it continues to raise tuition way above the inflation rate. What a scam.
Congress is, as we speak, rewriting the tax laws. Put a one-time excise tax of 15% on university endowments of more than $1 billion and then close the tax law loophole that allows millionaires and billionaires to write off their donations to colleges.
Use the money raised to lower the tax rates on everyone else.
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2) Worker Productivity and Worker Pay Are Almost 100% Correlated
One of the widely-repeated claims of the Natcons is that workers have made no gains in the last 30 years and that all the returns have gone into greedy corporate profits.
This chart, from AEI economist Scott Winship, blows that fallacy out of the water and shows visually a point we have made in recent days in the HOTLINE: total compensation to workers continues to rise and in nearly exact lockstep with productivity.
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Amazingly, worker compensation adjusted for inflation of nonfarm workers is up 250% since 1975, has nearly DOUBLED since 1994, and is up 40% since 2001.
Who in their right mind thinks workers in the middle class were better off in the 1970s than today?
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3) America Dominates AI
Speaking of American progress, the industry of the future is artificial intelligence. Good news: America is primed to dominate that technology revolution, just as we have dominated the Internet age.
All we need to do is keep the government the hell out of the way.
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4) Video of the Day: Robots Can Now Build Houses
The investments from the chart shown above are already bearing fruit.
We recently met with the folks from a new technology company based in the Midwest called Lightspeed that can build houses with robots using AI.
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Do we really believe that in five years we will have many Americans doing the drudgery of manual labor in factories? Thank God, no.
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5) Is ActBlue a Foreign Agent?
For almost 20 years, ActBlue has been the powerhouse online fundraising vehicle for progressives. In 2024, it funneled $46.7 million to Kamala Harris' campaign within days of her becoming the Democratic nominee.
But long standing suspicions that ActBlue has accepted illegal campaign donations for years are being confirmed. It changed its anti-fraud policy twice in 2024, to adopt "more lenient" standards that let it accept foreign and other suspicious donor money. Internal documents show ActBlue employees were pressed to "look for reasons to accept contributions."
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Donations poured in from all over the globe - Brazil, Colombia, Iraq, India, and Saudi Arabia among others. Several of ActBlue's lawyers recently resigned after internal documents were revealed.
President Trump signed a memorandum on Thursday to have the Department of Justice investigate ActBlue's ties to illegal foreign campaign contributions and possible money laundering.
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GOP Rep. Claudia Tenney says many elderly Americans have discovered their names were secretly used to make thousands of small donations to left-wing causes using ActBlue.
She wants to close a loophole that allowed $37 million in foreign money to be spent in eight states to fund left-wing ballot initiatives on issues ranging from the minimum wage to paid sick leave and "election reform."
This should be illegal.
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6) We Don’t Miss Him Already
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