Letter to the Editor

$500 Million: The Opportunity Cost

Just a quick thought regarding the HBS capital campaign: where is the $500 million coming from? I imagine it’s not all from personal bank accounts, more likely going to be funneled from corporations. That said, what is the opportunity cost – where else could that $500 million have been spent?

Perhaps on a more pressing need for the current crop of HBS MBA’s – JOBS.

If we assume an average cost over the next 5 years for hiring an MBA class of ’03 of $150K a year (sure, salaries aren’t that high right now, but there are other benefits and raises/bonuses to account for) and discount at 10%, that $500 million could be spent on 879 jobs. Interestingly, that’s about the same number of jobs as people graduating from HBS this year. Good thing I’m taking lots of Entrepreneurship classes this semester.

-Derek Mendez (OD)