Finding that the United States will suffer a future economic loss of over $1.7 trillion if the current recession drives an additional 3 million children into poverty, as has been predicted. That amounts to a yearly loss of about $35 billion dollars per year over the lifetime these children.
This report analyzes the cost of childhood poverty, including its effects on lifetime earnings and health outcomes. Research indicates that children who spend more than half of their childhood in poverty earn, on average 39% less than the median income. Furthermore, a poor child loses approximately a quarter of a million dollars worth of “health quality” over the course of their lifetimes.
By aggregating these long-term effects across the millions of poor children who are projected to fall into poverty as a result of this recession, the report produces a baseline estimate of the economic costs of allowing additional children to become poor during a recession.