EFTA01207372.pdf

Fast facts Economic and revenue growth Improving eductational outcomes and narrowing educational achievement gaps would significantly increase economic growth and raise government revenues. Bronze Scenario 1: If the U.S. matches the OECD average 2050 2075 math and science achievement score GDP would be 1 .7 96 tug' her 5.8 961righer The cumulative increase in present value GDP would be $2.5 trillion 514 trillion The cumulative increase in present value government revenues would be $902 billion 55.2 trillion Silver Scenario 2: If the U.S. matches the Canadian 2050 2075 average math and science achievement score GDP would be 6.7 96higher 24.5 96higher The cumulative increase in present value GDP would be $110 trillion $57.4 trillion The cumulative increase in present value government revenues would be $3.6 trillion s21.5 trillion Gold Scenario 3: If the U.S. matches the average math and science achievement score of the most 2050 2075 advantaged quarter of U.S. students GDP would be 10%higher 37.7%higher The cumulative Increase in present value GDP would be s14.7trillion 586.5 trillion The cumulative increase in present value government revenues would be $5.3 trillion s32.4. trillion Wage of 2 EFTA01207372  The consequences: annual economic and revenue growth The average annual increases in present value GDP and government revenue indicate the size of public investments that would pay for themselves in the form of GDP growth or tax revenues over the next 35 (by 2050) and 60 years (by 2075). Size of additional annual public investments in education that would pay for themselves in the form of GDP growth per year Government revenues per year Over 35 years Over 60 years Over 35 years Over 60 years V 72 illion .5234 billion $ 26 billion $87 billion V Af 5285 billion 5956 biilion • .. 5102 billion 5358 billion 5420 billion 51.4 trillion 5150 billion $540 billion For example if investments were made that raised U.S. math and science achievement scores up to the OECD avera e (Bronze scenario) , then the U.S. would experience 572 billion more in GDP growth each and every year for the next 35 years. Thus, we should be willing to invest up to 72 billion per year for the next 35 years to raise U.S. achievement scores up to the OECD average. Economic inequality reductions Raising academic achievement and narrowing educational achievement gaps would also reduce income inequality by raising the lifetime earnings of the poorest 75 percent of children more than they raise the lifetime earnings of the richest 25 percent of children. Increases in lifetime earnings for children once reforms are fully phased in. Poorest 4th Second poorest 4'h Third poorest 4'h Richest 4111 V 4.396 4.396 4.396 0.0% V 10.996 11.596 8.596 6.4% 22.0% 17.0% 9.396 0.0% Note: Under the bronze and gold SCV1/1001tte model atones this the kites: owner of &Wren eapenence no Immoyerrere in educator.* outcome and de don no resomment In Were <emelt gae n an, reforms that raise the educational ounanesd tie bottom three omen nell also raise the academic Dion" and 'here earn- ings dthe top quarter d chidreft rho the model inderstates a-ceases In 'Mime earnings. 44.1.•.• 2IPage of 2 EFTA01207373