Sunday, February 17, 2013

The Value of Preschool

President Obama wants to provide government subsidies supporting the availability of preschool to more income classes. Why is this good policy? Here's a graph from a widely-respected 1999 study that captures at least one aspect of the argument: when we look at different life situations by age 27 in a population, what is the breakdown of those who had the benefit of preschool vs those who did not:


So, for example, in groups that have five or more arrests by age 27 (frankly, I was pretty close to that myself; no, I did not have any preschool), five times as many did not have preschool; likewise, among those arrested for dealing drugs (yep, me again), a large majority didn't have preschool. Those who did have preschool were much more likely to earn more than $2000/month and own a home, and somewhat more likely to have a 12th-grade education or more (I beat the odds here; even without preschool, I attained the earnings, the home and the education). Those with preschool are much less likely to need public assistance as an adult and to have birth out of wedlock.

Here's the full study:

https://www.ncjrs.gov/pdffiles1/ojjdp/181725.pdf

And here's a discussion led by Chris Hayes around that study:

video.msnbc.msn.com/up-with-chris-hayes/50831282

Here's another analysis:

http://economix.blogs.nytimes.com/2013/02/18/preschool-economics/

Speaking for myself - I'd much rather live in a society where there are fewer crimes (i.e. fewer folks getting arrested), less need for public assistance and less birth out of wedlock; I'd rather that it was found more likely that society had successful career trends, leaned towards home ownership and had higher education - or at least high school. And I'd be willing to invest in that, so that when my son Connor grows up, this is the society he experiences.

As such, I support Obama's proposals. I consider it an investment that will pay itself back many times over.

Why Should Tax Rates be Progressive

Some elegant reasoning around the value of a progressive tax-rate structure: