ben s bernanke : early childhood education speech by mr ben s bernanke, chairman of the board of governors of the federal reserve system, at the children ’ s defense fund national conference ( via pre - recorded video ), cincinnati, ohio, 24 july 2012. * * * thank you very much for the opportunity to address you today. i'm especially pleased as an economist and policymaker to discuss the importance of education to the success of our economy. at the federal reserve we spend a lot of time looking at economic data, such as production and employment. in doing so, we try never to forget that these seemingly sterile numbers are, in fact, reflections of the economic aspirations, opportunities, and well - being of millions of americans. when individuals are denied opportunities to reach their maximum potential, it harms not only those individuals, of course, but also the larger economy, which depends vitally on having a skilled, productive workforce. as a result, we all have a stake in the essential work that you are doing for our children. so how can we improve the opportunities for all children and give them a chance to succeed in our ever - changing, globalized economy? as the husband of a teacher and an educator myself, as well as a parent and former school board member, i know from personal experience that, for creating opportunity and changing lives, there is no substitute for a quality education. the research shows that effective educations lead to lower rates of poverty, higher lifetime earnings, and greater satisfaction on the job and at home. and specialists in economic development have identified educational attainment as a key source of economic growth and rising incomes in many countries around the world. although education and the acquisition of skills is a lifelong process, starting early in life is crucial. neuroscientists observe that if the first few years of a child's life include support for healthy development in families and communities, the child is more likely to succeed in school and to contribute to society as an adult. conversely, without support during these early years, a child is ultimately more likely to drop out of school, earn lower wages, depend on government programs, or be incarcerated. 1 consistent with this research, early childhood education programs aim to nurture healthy development from the earliest years. programs that provide enriched experiences for children and that also involve parents have shown to benefit children from all backgrounds, but they have the strongest influence on children from disadvantaged environments. 2 importantly, state preschool assessments have shown

) is also close to 3 percent, as was the projection made by the congressional budget office earlier in the year ( see www. cbo. gov / about / products / budget _ economic _ data ). updated estimates from the model developed by laubach and williams ( 2003 ) indicate that the real long - run neutral or “ equilibrium ” short - term interest rate in the united states is currently about 2 – 1 / 2 percentage points lower than it was on average in the 1980s and 1990s ( see thomas laubach and john c. williams ( 2003 ), “ measuring the natural rate of interest, ” review of economics and statistics, vol. 85 ( november ), pp. 1063 – 70 ; updated estimates are available at www. frbsf. org / economic - research / economists / johnwilliams / laubach _ williams _ updated _ estimates. xlsx. ). in addition, holston, laubach, and williams ( 2016 ) find significant but somewhat smaller declines in equilibrium rates for the euro area, canada, and the united kingdom ( see kathryn holston, thomas laubach, and john c. williams ( 2016 ), “ measuring the natural rate of interest : international trends and determinants, ” working paper 2016 – 11 ( san francisco : federal reserve bank of san francisco, june ), www. frbsf. org / economic - research / files / wp2016 – 11. pdf ). for a discussion of the possible role played by these factors in explaining the current low level of interest rates in the united states and other advanced economies, see lawrence h. summers ( 2014 ), “ u. s. economic prospects : secular stagnation, hysteresis, and the zero lower bound, ” business economics, vol. 49 ( april ), pp. 65 – 73 ; robert j. gordon ( 2014 ), “ the demise of u. s. economic growth : restatement, rebuttal, and reflections, ” nber working paper 19895 ( cambridge, mass. : national bureau of economic research, february ) ; and ben s. bernanke ( 2015 ), “ why are interest rates so low, part 2 : secular stagnation, ” ben bernanke ’ s blog, blog post ( washington : brookings institution, march 31 ). for example, see james d. hamilton, ethan s. harris, jan hatzius, and kenneth d. west ( 2015 ),