The Power Of Education: Boosting Economic Growth In The Long Run

What does better education have to do with economic gains?

Well, a country’s economic growth is dependent on the skills of its workers....

And it turns out that math and reading proficiency are good predictors of the skills that lead to growth.

Without basic math and reading abilities, people don’t have a foundation for more advanced knowledge that leads to more productive work.

During the last century, The United States grew quickly because it embraced universal education earlier than other countries, resulting in a relatively more skilled workforce.

But our educational advantage has slowly disappeared. International test scores put our math and reading proficiency around thirtieth in the world, which points to low future growth. Even American students with college-educated parents, who would be expected to do well, actually don’t compare to students in other countries.

Just getting to Canada’s level would lead to a more productive workforce, adding trillions to the economy in the long run and boosting every worker’s paycheck.

It wouldn’t fix the economy overnight, but it would immensely improve the lives of future generations.

Whatever policies we choose, one thing is clear: if students become more proficient in math and reading, long-run economic growth will follow.