It's more than this. It's way better to think of Harvard et al as large hedge funds abusing the school tax loophole. They do want the children who will be world

It's more than this. It's way better to think of Harvard et al as large hedge funds abusing the school tax loophole. They do want the children who will be world leaders, billionaires etc. but it is because those are the most likely to donate to the hedge fund. They don't want to grow admission because it might hurt hedge fund donations but also because educating people is secondary to their actual purpose and should only be engaged in to the point that their primary purpose is maximized (middle management doesn't make the kind of donations worth worrying about for a hedge fund, they want a higher minimum efficient scale).