Leading economist presents case at Harris-Stowe May 13
By Bill Beene
Of the St. Louis American
Invest public money in the early development of at-risk youths from birth to age 5 and the nation’s economy will yield a profit. Fail to invest and society will show a loss.
That’s how the cookie crumbles, according to leading economist Arthur Rolnick, president and CEO of the Federal Reserve Bank of Minneapolis.
Human capital isn’t a typical research model for a federal banker. Rolnick usually researches banking, inflation and business cycles.
But after hearing a report that made a moral argument for early childhood education at a public forum, Rolnick proposed an economic polemic.
“I raised my hand because I thought that you need to make an economic argument,” Rolnick said in an interview with the American.
“I didn’t know the literature, but I had a hunch that you could probably make a very good economic argument that this is a good public investment.”
Child advocacy groups tied to the bipartisan organization’s forum agreed with Rolnick and invited him on their board and to compose an essay on his theory. Rolnick accepted and commandeered colleague Robert Grunewald.
When their report was published in 2003, it caught the attention of early childhood education advocates across the country. His phone has been ringing off the hook ever since.
Rolnick recently answered a call from Parents As Teachers National Center (based in St. Louis) to deliver his message at their summit from 10:30 to 11:30 a.m. Friday, May 13 at Harris-Stowe State College.
“His writing has been broadly circulated in the early childhood community, and it was revolutionary because it was coming from an economist rather than an early childhood professional or academician,” said Sue Stepleton, president and CEO of Parents As Teachers (PAT) National Center.
“I think it’s right on target. There is no social problem that wouldn’t be improved if we invest in children when they are very young and support their parents. And I would apply it to not only the social problem of education, but also to health care and racial justice.”
“I don’t think a lot of people know that 85 percent of brain development takes place in the first five or six years and how critical those years are when a child is in a very stressful environment,” Rolnick said.
“Because then the brain just doesn’t develop as it normally should, and if a child starts way behind in kindergarten, studies show that they do not catch up. So we can make a big difference.”
In making that difference, Missouri may be stunted. The Missouri Senate gave tentative approval last month to a bill that would overhaul the state’s First Steps program, which helps 8,100 toddlers up to age 3 with Down syndrome, cerebral palsy, spina bifida and other disabilities and developmental problems get ready for school.
The bill is still pending. If it passes, families would have to pay a monthly participation fee ranging from $5 to $100, based on their incomes. Medicaid-eligible families would not be affected by the fees, which are expected to raise at least $2 million.
The legislation does requires health insurance companies to cover physical, occupational and speech therapy costs as well as supportive technology for children, with an insurance cap of $3,000 annually per individual for three years. The state would pay insurance deductibles or co-payments.
The House Budget Committee recently approved the needed $16 million to continue the program, though its current state may be short-lived.
The overhaul, part of an attempt to balance the state budget, clashes with Rolnick’s economic theory.
“When you look at most conventional forms of economic development, where cities and states spend money to try to lure companies to their location, it isn’t really a productive use of public money,” Rolnick said.
“It’s what economists call a zero sum game. And we said a much better use of public funding is putting public dollars into education – human capital.”
Rolnick believes that early childhood education programs should include the edification of parents, as does PAT.
“If you look at the research, programs that we’re advocating are family-focused,” Rolnick said. “The research says you have to get the parent involved or you are not going to be successful.”
Arthur Rolnick will speak at 10:30 a.m. Friday, May 13 in the Emerson Center at Harris-Stowe, 3026 Laclede Ave. The event is free.
