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Freakonomics Radio

679. Why Does Vanderbilt Keep Winning?

26 Jun 2026

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What is the main topic discussed in this episode?

5.026 - 23.932 Stephen Dubner

Hey there, it's Stephen Dubner. Before today's episode, a quick announcement. We are about to launch a new project, a video show that we've been working on for a while. You could think of it as an indie TV talk show on YouTube. We are very excited about it, and we're looking for Freakonomics Radio listeners who want to pre-screen episodes and share their feedback.

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23.993 - 49.815 Stephen Dubner

We will select 100 people to take an early look. If you are interested... In being an extension of our production crew, please go to the link in the show notes and sign up. We will have a lot more to say very soon about this new show. And now here is today's episode of Freakonomics Radio. Right now is a hard time to lead just about any institution, and leading a university is particularly hard.

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50.196 - 71.584 Stephen Dubner

You've got your campus protests, your financial pressures, including federal funding cuts. You've got legal pressure from the Trump administration, which contends that universities have become captured by left-wing ideologies. And it's not like the American people are rushing to support you. According to Gallup surveys, public trust in higher education is near a historic low.

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71.564 - 89.758 Stephen Dubner

A lot of university leaders have crumbled under all this pressure. Many have been pushed out. But some campus leaders are, let's put it bluntly, they're winning. Over the next two episodes, we will talk to two of these winners. First up. My name is Daniel Diamira. I'm the chancellor of Vanderbilt University.

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89.738 - 111.78 Stephen Dubner

Vanderbilt is a major research university in Nashville, Tennessee, with about 7,300 undergraduates and 6,300 graduate and professional students. Its graduate programs in medicine and education are world class. Its business and law schools are also very well regarded. On the undergraduate side, it's already highly selective and applications continue to surge.

112.381 - 133.887 Stephen Dubner

Vanderbilt is also expanding under Diermeier with four new or planned satellite campuses. Even its football team, which is usually a laggard in the powerful Southeastern Conference, they've been winning big lately. Perhaps most strikingly, Diermeier and Vanderbilt seem to have dodged the federal government's ongoing assault on the broader university system.

133.867 - 140.678 Daniel Diermeier

We're a little bit of an outlier on that, and we have been able to deal with these situations quite well, but that is not typical.

141.238 - 158.946 Stephen Dubner

So today on Freakonomics Radio, we ask why. Why does everything seem to be going Vanderbilt's way? According to Diermeier, one key to their success is their embrace of a policy called institutional neutrality, a policy that has made Diermeier one of the most polarizing figures in higher ed.

159.061 - 169.486 Daniel Diermeier

Not everybody agrees with me, but my strong belief, and I think there's increasingly evidence now that is supplied almost on a weekly basis that points out that we have a problem.

Chapter 2: What challenges are universities facing today?

227.27 - 248.535 Stephen Dubner

said that, quote, the university is the home and sponsor of critics. It is not itself the critic. So what does that actually mean at a university today? We'll start with what Diermeier says is an important and often overlooked question. What problems were universities like Vanderbilt created to solve?

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249.176 - 273.608 Daniel Diermeier

Vanderbilt was founded about 153 years ago by Cornelius Vanderbilt, hence the name. We were founded by Vanderbilt, really with the explicit purpose to create a great university to bring together all the parts of a divided country, which, of course, was post-Civil War. We were a great regional university. Our nickname always has been the Harvard of the South, which we have mixed feelings about.

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273.648 - 296.706 Daniel Diermeier

And then about 25 years ago, my predecessor decided we wanted to be a great national university, and we have been on that path over the last 25 years. We are very happy in where we are. We've had probably the best year in our history last year. Whenever we look at things like student demand, fundraising, research activity, ability to attract talent, we're in a very good place right now.

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297.287 - 307.446 Stephen Dubner

I have seen polls showing that 7 in 10 Americans believe the higher education system in the U.S. is headed in the wrong direction. I assume you are not one of those 7?

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307.645 - 325.944 Daniel Diermeier

No, I'm not. Well, let me put it this way. I think there are real issues that need to be addressed. The fundamental purpose of the university is a noble purpose. It is about providing path-breaking research and a transformative education, and that is absolutely critical for the country. We should never forget that.

326.164 - 346.345 Daniel Diermeier

There's plenty of evidence that universities deliver on these promises, but there also are problems that we need to address and that I think were some of the root causes that have led to the erosion of trust. Name the biggest problems to address. There is a general concern about affordability and whether universities prepare students for careers.

346.405 - 363.727 Daniel Diermeier

That's something that is kind of bipartisan, but also questions about inequality. That usually comes from the left side of the political spectrum. And then there is, from the right side of the political spectrum, ongoing concerns over ideological drift, intellectual monocultures, lack of viewpoint diversities.

363.787 - 370.558 Daniel Diermeier

These are all different ways to talk about that universities have basically become politically biased to the left.

370.859 - 374.727 Stephen Dubner

What kind of relationship do you have with President Trump and his administration?

Chapter 3: How is Daniel Diermeier transforming Vanderbilt University?

415.005 - 419.37 Stephen Dubner

on that issue. What was the outcome, and how did you try to influence that outcome?

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419.731 - 440.418 Daniel Diermeier

Yeah, so I was in Washington every other week, sometimes alone, sometimes together with other university leaders. This was a proposal that came out of the House Ways and Means Committee. The highest tax would be 22%, and then it would go down. The critical thing here to understand is endowment – is accumulated philanthropy, okay?

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440.438 - 465.798 Daniel Diermeier

This is like what people have done to support the mission of the university. So if you're taxing the endowment, you're taxing philanthropic intent. And so we spend a lot of time trying to talk to members of Congress to just basically explain explained that this would have very negative consequences, especially on financial aid and especially on the research performing for universities.

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466.039 - 483.081 Daniel Diermeier

And we were able to, at the end of the day, you know, we meaning a whole bunch of university presidents that were active in Washington. We have now two bands rather than four, and at the highest, it's not 22, but eight. But we're affected by the endowment tax, and it will have a material impact on university programs.

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484.023 - 501 Stephen Dubner

Give me a general assessment of how research funding toward universities is flowing or not flowing right now. I did speak with a Vanderbilt professor who's in the medical school who likes you, by the way. Good. He said that there's a lot of concern that NIH funding in particular is pretty bottlenecked.

501.36 - 517.24 Stephen Dubner

The Trump administration has plainly come after a lot of universities, including major research universities in the Ivy League. You are a major research university, too, and that – It takes a lot of funding. So tell me where things stand. Multiple things going on all at the same time.

517.701 - 537.858 Daniel Diermeier

The battle would be in the federal administration and Harvard is just one example. So this is about a group of universities where there is ongoing conflict and battle between the Trump administration and universities. That's one bucket. Then the second question is research funding overall. There were – quite a few cuts post as part of the budgetary process.

538.119 - 562.369 Daniel Diermeier

We ended up with appropriations that actually increased NIH funding by about $300 million. NSF went down a little bit, but not Dramatically so. And I think what that shows is that there is strong bipartisan support for research funding. And that's great because that is the right policy. Then there are questions about the speed between grants being improved and money being spent.

562.389 - 583.356 Daniel Diermeier

There's clear delays. I mean, we see it. Is that because there were so many people left the NIH? You just have kind of bottlenecks because personnel shortages. That's what we're being told. That needs to happen again because we can bridge some of the cash needs in the short term. But again, if this takes longer, then it will have a material impact. Have you seen material impact yet?

Chapter 4: What is institutional neutrality and how does it affect universities?

651.333 - 676.733 Daniel Diermeier

The concern there, which goes back years, is that universities have drifted ideologically to the left, that there is lack of viewpoint diversity, intellectual monoculture, wokeism. These are all different words. that talk about the same thing. That is pre-President Trump, and I frankly have seen it manifesting itself in different ways. That is a real thing, okay?

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677.494 - 699.169 Daniel Diermeier

We have a problem particularly in fields where I would say society reflects upon itself. Those are the humanities, the kind of qualitative social sciences, anthropology, sociology, parts of the law school. and kind of adjacent areas. We need to address that. And if we don't address that, we will not regain the trust of the American public.

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699.29 - 717.115 Daniel Diermeier

It doesn't matter whether it's the Trump administration or anybody else in there. This is a serious problem. The underlying concern over the ideological drift. Monoculture is a real thing, and we as university leaders need to address that. That's what we need to do. That's our job, and we need to get on it.

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717.415 - 733.772 Stephen Dubner

The American Association of Colleges and Universities published an open letter last year speaking out against the unprecedented government overreach and political interference now endangering American higher education. This was signed by hundreds of college presidents, but not you. Why not?

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734.253 - 750.347 Daniel Diermeier

The way we always think about this is, is that we need to do the work of being clear about our principles and then have real conversations. I'm a little more skeptical that a big proclamation will do anything. My point of view is that

750.513 - 772.325 Daniel Diermeier

I want to be at the table, and I want to do the hard work on our campus, and I want to try to convince my fellow presidents and chancellors that there's a real issue that needs to be addressed. And if you're being perceived as the villain, politicians will attack you because that makes them the hero. That's the way this works. So you have to ask yourself honestly. Are there real issues?

772.705 - 791.775 Daniel Diermeier

And then how do we address them? There is a group of universities that think there's nothing wrong, that everything's great, and that this is entirely an attack by an authoritarian or quasi-authoritarian government, and we need to all stand together and resist. I disagree with that position, and I've made that clear in public before.

791.755 - 802.273 Stephen Dubner

Let's get back to what you have described as the political drift of universities in the U.S. over the past couple of decades. How would you think about the causes and especially the consequences of that drift?

802.914 - 830.065 Daniel Diermeier

The causes are complicated. I think the way you want to think about this is that most faculty members are motivated by doing their work. You're a biochemistry professor and you want to be in the lab 14 hours a day and do your work, okay? And you may trend to the political left, but in some sense it doesn't matter because biochemistry is really not about political issues.

Chapter 5: What historical context influenced Vanderbilt's founding?

1151.682 - 1165.378 Stephen Dubner

academics who would argue that that's not an ideological position they're taking. It's just a factual one that racial discrimination in policing and law enforcement in America has a long and deep history, and it's a bad thing. And therefore, people need to be educated about it.

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1165.398 - 1172.627 Stephen Dubner

And we don't necessarily need to spend time defending the previous status quo or looking at modern critiques of the current argument.

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1172.607 - 1190.116 Daniel Diermeier

But that's an assertion, right? That's an assertion about facts. And our job is to now kick the tires on that and see, is that true? And to what extent? And are there mitigating factors? And once you do a proper statistical model and you control for other factors, do these things still stand up? I mean, that's what real work means, right?

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1190.617 - 1205.652 Stephen Dubner

So this widespread embrace of a certain kind of text, where does that come from in your view? Is it... Is it the chilling effect we hear about? Is it maybe more of a natural expression of the kind of people who become university professors?

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1206.233 - 1224.249 Daniel Diermeier

We have certain disciplines now that are basically looking at the world from one point of view only. is the belief that our world is structured in a fundamentally unjust fashion and that these structures of oppression need to be dismantled. That's the position. Then it manifested itself in multiple different ways.

1224.89 - 1248.822 Daniel Diermeier

Number one, the free speech crisis that we had a little over 10 years ago, and I lived through in the University of Chicago. The way this was manifested is that we had the speech codes and we had the shouting down of speakers. that we're not in line with this point of view or we're challenging that, so-called controversial speakers. That's better now. It's not done, but it's better now. Why?

1248.862 - 1269.118 Daniel Diermeier

Because... We had clear principles, Chicago principles. It wasn't so easy anymore. It wasn't free anymore to basically cancel speakers. So that was chapter one. Chapter two is institutional neutrality. We had it since the late 60s, 70s. Chicago had it in the Calvin Report in 1967, but it came to the forefront.

1269.098 - 1282.438 Daniel Diermeier

really after October 7th, because the debate there was what the activist group wanted us to do was to take a position, which is to denounce Israel genocide, divest, cut ties with vendors that had any connection with Israel.

1283.319 - 1300.706 Daniel Diermeier

That's much better now, too, because we had a clear principle, institutional neutrality, and there was this pressure that came from alumni, Jewish community that basically said, look, universities, you got to get out of this position-taking game. And the political pressure probably played a role.

Chapter 6: What are the biggest problems facing American universities?

1543.29 - 1566.54 Daniel Diermeier

One reason I think why we got through this much better than most universities is because we had years ago thought hard about what is our purpose, what are operating principles. And then when the challenge came, we were basically ready to put them into action, to apply them. We didn't have to think this through. Okay, so what is your purpose and what are your operating principles?

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1566.52 - 1583.024 Daniel Diermeier

The way we think about this is that the purpose of a great research university is to provide pathbreaking research and a transformative education. That's what we believe. So we do not think that universities are political parties and they are not members of political or social movements.

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1583.584 - 1590.214 Stephen Dubner

And this is something that you've become known for as a practitioner of institutional neutrality. Do you like that term?

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1590.474 - 1612.432 Daniel Diermeier

That's one of the operating principles. In order to have path-breaking research and in order to have a transformative engagement, you must have an environment of open inquiry where ideas can flow freely. And so we believe that there are three pillars on that. The first one, which we call open forums, which is about free speech. That's very similar to the Chicago principles.

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1612.934 - 1636.061 Daniel Diermeier

We had it actually very early already. It's not something that is new to Vanderbilt. We had already in the 60s. For example, we have a policy on campus that student groups and faculty can invite speakers as they see fit. They don't have to be checked. In 1967, our students brought Stokely Carmichael, Storm Thurman, and Alec Ginsberg all to campus at the same time. 1967 in Nashville.

1636.241 - 1658.177 Daniel Diermeier

That must have been a fun night. It was interesting. Okay, so I was very young at the time, but that's a pillar that has been with us for a long time. Second pillar is the institutional neutrality piece. Which means that universities, university leaders will not take positions on policy issues or political issues unless they directly affect the core function of the university.

1658.358 - 1669.498 Stephen Dubner

Right. But the university presidents who do get involved with political statements say, well, everything affects the core mission of a university because we're teaching young people how to think about the entire world. So your response to that would be what?

1669.999 - 1683.855 Daniel Diermeier

Right. We want them to teach how to think, not what to think. We want to create an environment where our faculty or students can take different positions on something and do the hard work of figuring things out. We don't want to tell them from the top that's the right answer and that's not.

Chapter 7: How does political pressure impact university leadership?

1684.596 - 1699.394 Daniel Diermeier

If I give you an example, the Dobbs decision on abortion. There are some universities that have said, that this decision is inconsistent with the values of the university. That is not institutional neutrality. How would you think from a point of view of institutional neutrality on that?

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1699.434 - 1723.124 Daniel Diermeier

You would say, we have people that have different points of view on the Dobbs decision on campus, including among our faculty. For example, we have members of the law school that may have the following position. They may say, abortion should be safe, legal, and rare. But it's not the Supreme Court that should decide that decision, but Congress or state legislature.

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1723.965 - 1743.508 Daniel Diermeier

And they may say that Roe v. Wade was not decided correctly on judicial grounds. That's an argument that constitutional lawyers will make. That is a well-established position among people in law schools. Now, I want that position to be debated. I'm not going to say from the point of view of the president, you're wrong.

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1743.725 - 1759.301 Daniel Diermeier

You know, if you as a university president say this is the right outcome, then it chills debate. That is a real thing. Have you seen that in your academic career? Well, I was fortunate enough to be at Chicago and at Vanderbilt. So we are committed to institutional neutrality.

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1759.561 - 1767.228 Stephen Dubner

But you're interacting with professors and researchers from all these other institutions. Oh, yes. Did you feel it from your peers elsewhere?

1767.689 - 1790.504 Daniel Diermeier

Absolutely. Absolutely. You hear it from faculty kind of sotto voce, you know, when they talk to you. This is particularly a problem for young faculty members that are not tenured or for graduate students. It creates the sense of a party line or institutional orthodoxy, and that is a terrible thing to have at a university. The point of universities is to do the hard work.

1790.524 - 1813.388 Daniel Diermeier

They're all about expertise. We really look into details and we have gone through a lot of process of learning and research. We are certified as experts in a particular field. That's what entitles you to teach in a law school. Now, if I come in and I say the Dobbs decision is inconsistent with the values of the university, I'm basically pretending that

1813.368 - 1827.972 Daniel Diermeier

like I'm a constitutional lawyer, which I'm not. So I'm sending exactly the wrong signal to our faculty and our students. So institutional neutrality is really about leaders. There's a separate question about what happens in research areas.

1828.754 - 1845.599 Daniel Diermeier

But this institutional neutrality really needs to be understood as a restraint on university leaders, presidents, provosts, board members, but also deans, department chairs, and so forth. You were giving three pillars. We got through two. The third one is Vanderbilt's commitment to civil discourse.

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