when austrian economists attack

orgtheory.net

A few years ago, the late Sherlock Hibbs gave $5M to his alma mater, the University of Missouri. The intent was for Mizzou to hire six (!) professors and each needed to be a “dedicated and articulate disciple” of Ludwig von Mises. The Columbia Daily Tribune reports that the university got sued by Hillsdale College over this donation. Why? Hillsdale College claims that the terms of the donation were not met and the terms of the donation require that the gift, now valued at $9M would go to Hillsdale if the University of Missouri could not fulfill its terms.

Comment #1: This is a fascinating way to create some enforcement within the non-profit sector. It’s not full proof but in relatively simple donations, third parties would be willing to litigate if the reward was big enough and the enforcer could be written into the contract. Hillsdale is ideologically…

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