Best economic stimulus is a high school diploma
A just released study shows that the economy could grow "significantly" if educators could stem the number of high school dropouts by half in big cities.
The Alliance for Excellent Education says that there were 600,000 dropouts in the class of 2008, and if half had graduated, their incomes wold have added $4.1 billion annually to the the economy.
The study, which looked at the 50 top cities, also indicates that state and local tax revenues would have been boosted by $536 million. New York would have received the largest amount, $92 million, and Wichita, at the bottom, $1.5 million.
"The numbers demonstrate clearly that every consumer, business and taxpayer benefit dramatically when we increase the number of students who graduate with skills they need to succeed, stated Bob Wise, Alliance president.
The economy in Colorado Springs was not included. But the study has figures for Denver.
In the Denver metropolitan area, 8,769 students dropped out from the Class of 2008, the study says. "Reducing the number of dropouts by 50 percent for just this single high school class would result in tremendous economic benefits," the study says. If just half of that number-- 4,385 new graduates -- this is how it would have changed the economy:
-- By earning their diplomas—and in many cases, continuing their education—these new high school graduates would together earn nearly $69 million in additional wages over the course of an average year compared to their likely earnings without a diploma.
-- An estimated 77 percent of these students are projected to continue their education after high school, some earning as high as a PhD or other professional degree.
-- As these new graduates’ incomes grow, local tax revenues will have also increased. Annual state and local property, income, and sales tax revenue would grow by nearly $8 million during the average year as the result of increased spending and higher salaries.
For more information visit www.all4ed.org/publication_material/EconMSA
