It is very important to teach children at a young age what the Fed is so they don’t bother to question it when they grow up…
Thank you very much for the opportunity to address you today. I’m especially pleased as an economist and policymaker to discuss the importance of education to the success of our economy. At the Federal Reserve we spend a lot of time looking at economic data, such as production and employment. In doing so, we try never to forget that these seemingly sterile numbers are, in fact, reflections of the economic aspirations, opportunities, and well-being of millions of Americans. When individuals are denied opportunities to reach their maximum potential, it harms not only those individuals, of course, but also the larger economy, which depends vitally on having a skilled, productive workforce. As a result, we all have a stake in the essential work that you are doing for our children.
So how can we improve the opportunities for all children and give them a chance to succeed in our ever-changing, globalized economy? As the husband of a teacher and an educator myself, as well as a parent and former school board member, I know from personal experience that, for creating opportunity and changing lives, there is no substitute for a quality education. The research shows that effective educations lead to lower rates of poverty, higher lifetime earnings, and greater satisfaction on the job and at home. And specialists in economic development have identified educational attainment as a key source of economic growth and rising incomes in many countries around the world.
Although education and the acquisition of skills is a lifelong process, starting early in life is crucial. Neuroscientists observe that if the first few years of a child’s life include support for healthy development in families and communities, the child is more likely to succeed in school and to contribute to society as an adult. Conversely, without support during these early years, a child is ultimately more likely to drop out of school, earn lower wages, depend on government programs, or be incarcerated.1
Consistent with this research, early childhood education programs aim to nurture healthy development from the earliest years. Programs that provide enriched experiences for children and that also involve parents have shown to benefit children from all backgrounds, but they have the strongest influence on children from disadvantaged environments.2 Importantly, state preschool assessments have shown that early childhood education programs make children better prepared for school, a precursor of future success.3
The benefits of early childhood programs are not just short-term in nature. Careful studies demonstrate that early interventions can have a positive effect on young children from low-income families that lasts well into adulthood. For example, analysis of one program showed that children who attended a high-quality half-day preschool program at ages 3 and 4 were, at age 40, more economically successful–for example, more likely to own their own homes–than nonparticipants in a control group.4 In other evaluations, long-term benefits were demonstrated for a full-day early childhood education program starting before age 1 and for a nurse-based home visiting program.