Early learning is a better investment than the stock market, says a top economist

One of the leading voices in economics and child care made a simple yet compelling argument this month: Early learning’s return on investment beats the stock market and new sports stadiums.

Former Minneapolis Federal Reserve economist Art Rolnick took a look at the well known Perry Preschool’s role in the economy in a Q&A with the Federal Reserve Bank of Cleveland’s magazine Forefront. What he found was surprising,

We compared it to the stock market. The annual yield in the stock market, post-World War II, is about 5.8 percent, so we thought we would be doing well if we could beat 5.8 percent. We found that in the Perry preschool study, the annual rate of return, inflation-adjusted, was 16 percent—I don’t think you could find a better public investment. – “Stop Investing in Stadiums…Start Investing in Kids” Forefront, 10/6/10.

by Paul Nyhan

Full Story: http://birthtothrive.thrivebyfivewa.org/post/2010/10/12/Why-Early-Learning-Beats-the-Stock-Market-and-New-Stadiums.aspx