America 1982-Chapter 75 - 30: Stanford University

Ottelia’s beautiful eyes were fixed intently on Tommy Hawk, "Stanford University, Tommy, are you choosing Stanford University? I don’t deny that it’s an excellent college, but it... You like to study computer science; you could completely choose the University of Chicago."

The tall male student sitting opposite her had, with her help, applied to eleven universities. Although Harvard University and Yale University had unsurprisingly rejected Tommy, Ottelia felt that Tommy could completely go for the University of Chicago, the University of California Los Angeles, New York University, or even what she considered a garbage college like Cornell University, which had all sent Tommy acceptance letters.

"Stanford University offered me a full scholarship; I don’t need to worry about tuition and living expenses anymore, whereas the scholarship from the University of Chicago isn’t full," Tommy said with a smile, sitting opposite Ottelia, explaining his reason for deciding to choose Stanford.

He also knew why Ottelia was trying to persuade him to change his decision. In the 1980s, Stanford barely counted as a prestigious school, and that was just barely—it was far from the kind of top-tier school that would later be ranked alongside Harvard and Yale.

In the eyes of Americans in the 1980s, the country’s true top-tier institutions were only two universities, Harvard and Yale, probably the Shaolin and Wudang of the university world, their status already perfect.

Next came Massachusetts Institute of Technology, Princeton University, Columbia University, the University of Chicago, well-known University of California campuses, Duke University, the University of Pennsylvania, and other old, famous universities. Occasionally they could rank in the top three or even first, but compared to Harvard and Yale, they always had some obvious shortcomings or lacked other foundational resources.

Then, there were the prestigious garbage universities that Ottelia talked about, including Cornell University, Brown University, Dartmouth College, and so on. Even though they were ranked alongside Harvard in the Ivy League, they were weaker than Columbia University and Princeton University. Some emerging universities not listed in the Ivy League were already outperforming them in certain disciplines.

And Stanford was just the kind of emerging university that Ottelia mentioned, lagging behind complacent prestigious institutions like Cornell, but actively striving to surpass the traditional powerhouses.

However, although she was aware that Stanford was gradually gaining strength, Ottelia felt that Stanford’s academic staff and foundational strength weren’t something that could be surpassed overnight. At present, Stanford didn’t seem to have much of an advantage over the universities she had mentioned earlier in terms of faculty strength.

Tommy Hawk’s choice of Stanford had nothing to do with faculty strength, nor had he considered how many Nobel laureates were present at the university.

In his past life as an international student, he had applied to Stanford and set it as his dream school to strive for. Unfortunately, and quite realistically, Stanford had not sent him an acceptance letter, and in the end, he could only opt for his backup option, Boston University.

Yet, having gathered information on this school he had wanted to study at in his past life, he was well aware of Stanford’s status at the time. It certainly lacked the depth and faculty strength of the old prestigious schools but also possessed a modern way of thinking that those schools didn’t have.

In 1951, Stanford had proposed a symbiotic system of business and research, creating the famous Stanford Industrial Park, known later as Silicon Valley.

Stanford encouraged students to start businesses reliant on campus resources, offering low rents and even opening up the university’s labs to entrepreneurial students’ companies. They could use the school’s equipment for innovation. At Stanford, you could continuously absorb knowledge while chasing your dreams. In class, you could be the teacher’s student; outside of class, as an entrepreneur, you could even hire your teacher to work for your business. You could take a break from studies to focus on starting a business, or you could continue your education after achieving success.

This symbiotic approach to education and research was the reason why Stanford went from an obscure regional university to barely breaking into the top thirty with microelectronics and physics in the 1960s, and then, riding the wave of Silicon Valley in the 1980s, soared past numerous traditional universities to sit on a par with Harvard and Yale within just forty years.

The twenty-year-old Silicon Valley became globally renowned due to the rise of the software and internet industries, producing dozens or even hundreds of millionaires in a matter of months, like a gushing well. The majority of these new millionaires hailed from Stanford. When their companies earned money, the students would donate astronomical sums back to their alma mater, and Stanford would then use these donations to expand its faculty, improve teaching facilities, and support a new generation of students.

In its 120-year history, it had a modest reputation during the first 80 years.

In the following 40 years, 85 Nobel laureates emerged, and alumni-founded companies amassed a total market value exceeding three trillion US dollars, creating 5.5 million jobs.

The success of founding the summer camp was the main reason why Stanford University was willing to send Tommy Hawk an admission letter. In his application letter, Tommy candidly expressed his preference for entrepreneurship, aiming to apply what he learns in school through the entrepreneurial process, and he also clarified that he was the first in his family to attend college.

Stanford University, along with the University of Southern California, has a custom of favoring first-generation college students—those who are the first in their families to attend college—over those with similar grades and experiences, with the belief that first-generation students may be more resilient.

"Even if it’s not a full scholarship, the money you’ve earned is enough to pay for your tuition," Ottelia said with some sentimentality. "Stanford is in California, which is a bit too far away. It’s a pity Brown University didn’t send you an admission letter, otherwise you could study in Providence with Dennis and Pam, and after I get off work I could drive to Providence to watch a movie with you."

The summer camp had a total revenue of 350,000 dollars. After deducting the 140,000 dollars that the school took as a tax-free educational fund share, the remaining 210,000 dollars were subjected to various taxes totaling 44%. This left Tommy with 116,000 dollars, which was divided equally with Dennis and Pam, leaving each person with 38,900 dollars.

Yes, in the end, he was left with only 38,900 dollars.

Tommy Hawk, who had arrived from another universe, had not benefited from low-income assistance but quickly understood why wealthy people went to great lengths to avoid or evade taxes after just earning a bit of money. This was even after the Reagan Government had continuously introduced policies to reduce the tax burden to stimulate society. In the first couple of years after World War II ended, it was said that wealthy Americans even faced personal income tax rates as high as 94%.

The tax system in the United States is a classic case of robbing the rich to aid the poor. The higher the income, the higher the tax one has to pay, which includes federal tax, state tax, and city tax—layers of levies—essentially meaning the more you earn, the more the government takes from what’s rightfully yours.

This is also why lottery winners in the United States often receive less than half of the prize money after taxes are deducted.

Tommy Hawk looked at Ottelia and joked, "Are you sure you’d invite Dennis and Pam to watch a movie together?"

"No," Ottelia laughed and shook her head. "Let them focus on their studies at the Rhode Island Community College. My goodness, their resumes state that they’ve helped Nobel laureates with their theses. Just thinking about that line on their resumes makes me cringe."

Tommy Hawk picked up his admission letter, stood up with a smile, and said, "Miss Farrell, I’m very grateful for the help you’ve given me these past days. I feel appreciation and some inappropriate thoughts towards you. So, if one day you’re ready to find a man to marry, remember to call me first to ask. Maybe by that time, I’ll have the time and enough money."

"You’re too young; actually, I prefer men who are more mature," Ottelia said with a smile, standing up and giving Tommy a gentle hug. "Go and have the most wonderful four years of your life."

"I will show you my mature side as soon as I can," Tommy released Ottelia and turned to walk out of the office.