The Effects of Investing in Early Education on Economic Growth

Many in Congress and the
administration have called for new
investments in education in order
to make the United States more
competitive, with President Bush
stressing the importance of
education in preparing young
Americans to “fill the jobs of the
21st century.” Yet advocates of
early childhood education have
only recently stressed the
economic benefits of preschool programs, and it has been difficult to win support for
these short-term investments given the long-term nature of the benefits to the
economy.

This policy brief analyzes the impact of a high-quality universal preschool policy on
economic growth, concluding that such a policy could add $2 trillion to annual U.S.
GDP by 2080.

By 2080, a national program would cost the federal government
approximately $59 billion, but generate enough additional growth in federal revenue
to cover the costs of the program several times over.

By William T. Dickens, Isabel Sawhill, and Jeffrey Tebbs

Full Report: http://www.brookings.edu/comm/policybriefs/pb153.pdf