The U.S. pays hundreds of billions of dollars a year in direct and indirect costs for a broken system, a new report finds.
in 2019 as part of her presidential campaign, envision the federal government subsidizing child care for people who can’t afford it and boosting salaries for the people who provide it. That could easily require tens of billions of dollars a year in new spending, or even more.
But as the EPI report documents, government spending on early childhood in the U.S. is small by the standards of peer countries. In nations that belong to the Organization for Economic Co-operation and Development, average public spending on early childhood is 0.74% of gross domestic product. Here in the U.S., it’s just 0.33%, taking account of both federal and state spending.
Closing that gap would be worthwhile, the EPI report suggests, given the not-so-hidden costs that an inadequate child care system already places on the U.S., a senior economist at the Washington-based think tank. “Yes, new investment is needed, but there’s already a lot of money being spent ― or lost.
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