Every election, I hear about how every dollar spent on education now will save X dollars in the future. What is this claim based on? Are there studies that prove spending money on education now saves money in the future?
This is not really the same thing but it is interesting.
The VA did a study in the '80s of veterans who did/did not go to college in the '50s on the GI Bill. The ones who went to college made so much more money over their careers that they ended up paying several times over the cost of their education in higher income taxes.
There’s a lot of studies such as that. Education does pay, at least in this regard.
Ignorant people are a net drain on the economy.
People with better education tend to end up with better paying jobs. That not only generates more tax revenue, but it’s less likely the person will need public assistance.
People with better education tend to go to jail less. That results in less drain on those resources.
And not exactly a direct answer, but an interesting statistic. Students participating in California’s After School Learning and Safe Neighborhoods program improved reading and match scores on standardized tests by about 4%, were less likely to be held back in school, had fewer behavioral problems, and there school attendence improved by 17 days per year.
And of course, if you’re a homeowner, better school districts tend to result in higher property values for homes in those districts.
The relevant question would concern the effect of a marginal dollar spent on education. Will spending additional money on government-run schools (a) increase the quality of education provided, and will this (b) cause students to become more productive in later life, thus demanding fewer government services and paying more in taxes? It’s not enough to say, “Education is a net benefit and therefore we should spend more money on it.” Because, where would you stop?