Early Childhood Education is Key
November 23, 2002

The recent revelations of the sordid maneuvers by Salomon Smith Barney telecom analyst Jack Grubman to get his children into New York’s 92 Street Y nursery school, one of Manhattan’s most exclusive preschools, is appalling. Yet this disturbing tale is only a perverse twist on far more widespread and much more benign trend: Well-heeled and well-educated parents everywhere are taking early childhood development seriously, spending enormous sums on toddler education. Yes, parents sometimes lose a sense of proportion. But the essential insight is right: The payoff from high quality early childhood development programs is enormous.

Sad to say, studies suggest that as many as 40 percent of youngsters are entering kindergarten unprepared. Children from low-income households concentrated in major urban areas are especially at risk. Many of these youngsters never catch-up in school, eventually joining the ranks of poorly paid workers with few skills and even fewer prospects.

But this is a social problem that can be solved. Government can intervene and provide disadvantaged youngsters with a high quality preschool learning environment. Economic studies suggest that the return on such investment is an enormous 14 percent to 16 percent, after adjusting for inflation. To put that figure in context, the long-term inflation-adjusted return from stocks is 7 percent.

To be sure, the price tag is steep, about twice the approximately $5,000 for every youngster in Head Start. But the money is available. It’s simply a matter of funding priorities. Congress managed to find $182 billion in taxpayer money over the next 10 years to subsidize farming, even though the track record of subsidies in agriculture over the past seven decades has been dismal. State and local governments routinely come up with millions of dollars in subsidies for everything from sports stadiums to business relocation although economists find little to no return on such public spending.

American employers increasing value an educated workforce. If conservatives are serious about equality of opportunity for all citizens rather than stacking the game for the benefit of the few, early childhood education should become a well-funded crusade. And if liberals are serious about attacking inequality, then they should realize that society’s compelling interest in early childhood education and the interests of the education establishment aren’t synonymous. All it takes is the political courage to do what we know works, and reallocate resources toward early childhood education.

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