Sunday, April 26, 2020

Two Minnesota economists see the costs to young people of the coronavirus shutdown far outweighing the benefits:


From the Star-Tribune.  Author is the Chair of the Economics Department at te University of Minnesota:
Are these benefits of a continued shutdown sufficient to justify the horrific costs it imposes, especially on the young? I believe not, and instead see continuing our current policies for much longer as generational theft.

Preschool children are losing irreplaceable schooling shown to be crucial in cognitive development. K-12 students are losing schooling shown to have huge returns to their future earning abilities. Undergraduate, graduate and professional students are delaying their productive careers.

The currently unemployed are disproportionally young and losing not only paychecks, but extremely valuable on-the-job experience. Further trillions are being added to the national debt, to be paid by future taxpayers, the young.
There's an opportunity here for a great study on the effect on young people when the shutdown is brief versus of longer duration.  All else equal, young people in Colorado, Oklahoma, Georgia and states where the shutdown was brief should have fewer long-terms effects (career, educational attainment) than young people instates where the shutdown was extensive (New York, New Jersey, Michigan).  This should be particularly important for those at important life turning points like college graduation. 

https://www.startribune.com/a-month-into-mass-quarantine-what-now/569933882/?refresh=true

No comments:

Post a Comment