Timothy Bartik: The economic case for preschool

32,863 views ใƒป 2013-05-06

TED


ืื ื ืœื—ืฅ ืคืขืžื™ื™ื ืขืœ ื”ื›ืชื•ื‘ื™ื•ืช ื‘ืื ื’ืœื™ืช ืœืžื˜ื” ื›ื“ื™ ืœื”ืคืขื™ืœ ืืช ื”ืกืจื˜ื•ืŸ.

00:00
Translator: Joseph Geni Reviewer: Morton Bast
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ืžืชืจื’ื: Zeeva Livshitz ืžื‘ืงืจ: Ido Dekkers
00:13
In this talk today, I want to present a different idea
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ื‘ื”ืจืฆืื” ื–ื• ื”ื™ื•ื ื‘ืจืฆื•ื ื™ ืœื”ืฆื™ื’ ืจืขื™ื•ืŸ ืฉื•ื ื”
00:17
for why investing in early childhood education
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ืฉืžืฆื™ืข ืžื“ื•ืข ื”ืฉืงืขื” ื‘ื—ื™ื ื•ืš ื‘ื™ืœื“ื•ืช ื”ืžื•ืงื“ืžืช
00:21
makes sense as a public investment.
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ื”ื™ื ื”ื’ื™ื•ื ื™ืช ื›ื”ืฉืงืขื” ืฆื™ื‘ื•ืจื™ืช.
00:24
It's a different idea, because usually,
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ื–ื” ืจืขื™ื•ืŸ ืฉื•ื ื”, ื›ื™ ื‘ื“ืจืš ื›ืœืœ
00:26
when people talk about early childhood programs,
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ื›ืฉืžื“ื‘ืจื™ื ืขืœ ืชื•ื›ื ื™ื•ืช ืœื’ื™ืœ ื”ืจืš,
00:28
they talk about all the wonderful benefits for participants
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ืžื“ื‘ืจื™ื ืขืœ ื›ืœ ื”ื™ืชืจื•ื ื•ืช ื”ื ืคืœืื™ื ืœื™ืœื“ื™ื
00:31
in terms of former participants, in preschool,
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ื‘ืžื•ื‘ืŸ ืฉืœ ื™ืœื“ื™ ื”ื’ืŸ ืœืฉืขื‘ืจ,
00:34
they have better K-12 test scores,
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ื™ืฉ ืœื”ื ืฆื™ื•ื ื™ื ื˜ื•ื‘ื™ื ื™ื•ืชืจ ืžื’ืŸ ื—ื•ื‘ื” ื•ืขื“ ื›ื™ืชื” ื™"ื‘
00:37
better adult earnings.
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ืฉื›ืจ ื’ื‘ื•ื” ื™ื•ืชืจ ื›ืฉื”ื ืžื‘ื•ื’ืจื™ื.
00:39
Now that's all very important,
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ืขื›ืฉื™ื•, ื›ืœ ื–ื” ื—ืฉื•ื‘ ืžืื•ื“
00:41
but what I want to talk about is what preschool does
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ืื‘ืœ ืื ื™ ืจื•ืฆื” ืœื“ื‘ืจ ืขืœ ืžื” ืฉื’ืŸ ื”ื™ืœื“ื™ื ืขื•ืฉื”
00:45
for state economies
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ืขื‘ื•ืจ ื›ืœื›ืœื•ืช ื”ืžื“ื™ื ื”
00:47
and for promoting state economic development.
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ื•ืขื‘ื•ืจ ืงื™ื“ื•ื ื”ืคื™ืชื•ื— ื”ื›ืœื›ืœื™ ืฉืœ ื”ืžื“ื™ื ื”.
00:50
And that's actually crucial
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ื•ื–ื” ื‘ืขืฆื ืงืจื™ื˜ื™
00:53
because if we're going to get increased investment
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ื›ื™ ืื ืชื”ื™ื” ืœื ื• ื”ืฉืงืขื” ืžื•ื’ื‘ืจืช
00:57
in early childhood programs,
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ื‘ืชื•ื›ื ื™ื•ืช ืœื’ื™ืœ ื”ืจืš,
00:59
we need to interest state governments in this.
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ืขืœื™ื ื• ืœืขื ื™ื™ืŸ ื‘ื›ืš ืืช ืžืžืฉืœื™ ื”ืžื“ื™ื ื•ืช.
01:03
The federal government has a lot on its plate,
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ืœืžืžืฉืœ ื”ืคื“ืจืœื™ ื™ืฉ ื”ืจื‘ื” ืขืœ ื”ืจืืฉ,
01:05
and state governments are going to have to step up.
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ื•ืžืžืฉืœื™ ื”ืžื“ื™ื ื•ืช ื™ืฆื˜ืจื›ื• ืœื”ืฉืงื™ืข.
01:07
So we have to appeal to them,
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ื›ืš ืฉืขืœื™ื ื• ืœืคื ื•ืช ืืœื™ื”ื,
01:10
the legislators in the state government,
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ืœืžื—ื•ืงืงื™ื ื‘ืžืžืฉืœ ื”ืžื“ื™ื ื”,
01:12
and turn to something they understand,
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ื•ืœืคื ื•ืช ืœืžืฉื”ื• ืฉื”ื ืžื‘ื™ื ื™ื,
01:14
that they have to promote the economic development
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ืฉืขืœื™ื”ื ืœืงื“ื ืืช ื”ื”ืชืคืชื—ื•ืช ื”ื›ืœื›ืœื™ืช
01:16
of their state economy.
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ืฉืœ ื›ืœื›ืœืช ื”ืžื“ื™ื ื” ืฉืœื”ื.
01:18
Now, by promoting economic development,
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ื›ืขืช, ื‘ืืžืฆืขื•ืช ืงื™ื“ื•ื ื”ืคื™ืชื•ื— ื”ื›ืœื›ืœื™,
01:20
I don't mean anything magical.
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ืื ื™ ืœื ืžืชื›ื•ื•ืŸ ืœืžืฉื”ื• ืงืกื•ื.
01:22
All I mean is, is that early childhood education
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ื›ืœ ื›ื•ื•ื ืชื™ ื”ื™ื, ืฉื—ื™ื ื•ืš ื‘ื’ื™ืœ ื”ืจืš
01:25
can bring more and better jobs to a state
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ืขืฉื•ื™ ืœื”ื‘ื™ื ืžืฉืจื•ืช ื˜ื•ื‘ื•ืช ื•ืจื‘ื•ืช ื™ื•ืชืจ ืœืžื“ื™ื ื”
01:29
and can thereby promote higher per capita earnings
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ื•ื‘ื›ืš ื™ื›ื•ืœ ืœืงื“ื ืจื•ื•ื—ื™ื ืœื ืคืฉ ื’ื‘ื•ื”ื™ื ื™ื•ืชืจ
01:32
for the state's residents.
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ืœืชื•ืฉื‘ื™ ื”ืžื“ื™ื ื”.
01:34
Now, I think it's fair to say that when people think about
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ืขื›ืฉื™ื•, ืื ื™ ื—ื•ืฉื‘ ืฉื–ื” ื”ื•ื’ืŸ ืœื•ืžืจ ืฉื›ืืฉืจ ืื ืฉื™ื ื—ื•ืฉื‘ื™ื ืขืœ
01:38
state and local economic development,
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ื”ืคื™ืชื•ื— ื”ื›ืœื›ืœื™ ืžืงื•ืžื™ ื•ืฉืœ ื”ืžื“ื™ื ื”,
01:40
they don't generally think first about what they're doing
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ื”ื ื‘ื“ืจืš ื›ืœืœ ืœื ื—ื•ืฉื‘ื™ื ืงื•ื“ื ื›ืœ ืขืœ ืžื” ืฉื”ื ืขื•ืฉื™ื
01:44
about childcare and early childhood programs.
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ื‘ืชื•ื›ื ื™ื•ืช ื˜ื™ืคื•ืœ ื‘ื™ืœื“ื™ื ื•ื‘ื’ื™ืœ ื”ืจืš.
01:46
I know this. I've spent most of my career researching these programs.
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ืื ื™ ื™ื•ื“ืข ืืช ื–ื”. ื‘ื™ืœื™ืชื™ ืืช ืจื•ื‘ ื”ืงืจื™ื™ืจื” ืฉืœื™ ื‘ืžื—ืงืจ ืชื•ื›ื ื™ื•ืช ืืœื”.
01:50
I've talked to a lot of directors
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ื“ื™ื‘ืจืชื™ ืขื ื”ืจื‘ื” ืžื ื”ืœื™ื
01:52
of state economic development agencies about these issues,
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ืฉืœ ืกื•ื›ื ื•ื™ื•ืช ืœืคื™ืชื•ื— ื›ืœื›ืœื™ ืฉืœ ื”ืžื“ื™ื ื” ืขืœ ื”ื ื•ืฉืื™ื ื”ืืœื”,
01:54
a lot of legislators about these issues.
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ืขื ื”ืจื‘ื” ืžื—ื•ืงืงื™ื ื‘ื ื•ืฉืื™ื ื”ืืœื”.
01:57
When legislators and others think about economic development,
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ื›ืืฉืจ ืžื—ื•ืงืงื™ื ื•ืื—ืจื™ื ื—ื•ืฉื‘ื™ื ืขืœ ืคื™ืชื•ื— ื›ืœื›ืœื™,
02:00
what they first of all think about are business tax incentives,
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ื”ื ืงื•ื“ื ื›ืœ ื—ื•ืฉื‘ื™ื ืขืœ ืชืžืจื™ืฆื™ ืžืก ืขืกืงื™ื™ื,
02:03
property tax abatements, job creation tax credits,
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ื”ืคื—ืชืช ืžืก ืจื›ื•ืฉ , ื–ื™ื›ื•ื™ื™ื ืžืžืก ื‘ื™ืฆื™ืจืช ืžืงื•ืžื•ืช ืขื‘ื•ื“ื”,
02:06
you know, there are a million of these programs all over the place.
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ืืชื ื™ื•ื“ืขื™ื, ื™ืฉ ืžื™ืœื™ื•ืŸ ืžืชื•ื›ื ื™ื•ืช ืืœื” ื‘ื›ืœ ืžืงื•ื.
02:09
So for example, states compete very vigorously
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ืื– ืœื“ื•ื’ืžื, ืžื“ื™ื ื•ืช ืžืชื—ืจื•ืช ื‘ื™ื ื™ื”ืŸ ื‘ืื•ืคืŸ ื ืžืจืฅ ืžืื“
02:11
to attract new auto plants or expanded auto plants.
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ืื™ืš ืœืžืฉื•ืš ืžืคืขืœื™ ืžื›ื•ื ื™ื•ืช ื—ื“ืฉื™ื ืื• ืœื”ืจื—ื™ื‘ ืžืคืขืœื™ ืžื›ื•ื ื™ื•ืช.
02:15
They hand out all kinds of business tax breaks.
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ื”ื ืžืขื ื™ืงื™ื ื›ืœ ืžื™ื ื™ ื”ืงืœื•ืช ื‘ืžื™ืกื™ ืขืกืงื™ื.
02:17
Now, those programs can make sense
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ืขื›ืฉื™ื•, ืชื•ื›ื ื™ื•ืช ืืœื” ื™ื›ื•ืœื•ืช ืœื”ื™ื•ืช ื”ื’ื™ื•ื ื™ื•ืช
02:19
if they in fact induce new location decisions,
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ืื ื”ืŸ ืœืžืขืฉื” ืžืžืจื™ืฆื•ืช ื”ื—ืœื˜ื•ืช ืขืœ ืžื™ืงื•ื ื—ื“ืฉ,
02:22
and the way they can make sense is,
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ื•ื”ื“ืจืš ืฉื‘ื” ื”ืŸ ื™ื›ื•ืœื•ืช ืœื”ื™ื•ืช ื”ื’ื™ื•ื ื™ื•ืช ื”ื™ื,
02:24
by creating more and better jobs,
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ืขืœ-ื™ื“ื™ ื™ืฆื™ืจืช ืžืงื•ืžื•ืช ืขื‘ื•ื“ื” ื˜ื•ื‘ื™ื ื™ื•ืชืจ,
02:26
they raise employment rates, raise per capita earnings of state residents.
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ื”ืŸ ืžืขืœื•ืช ืืช ืฉื™ืขื•ืจื™ ื”ืชืขืกื•ืงื”, ืžืขืœื•ืช ืืช ื”ืจื•ื•ื—ื™ื ืœื ืคืฉ ืฉืœ ืชื•ืฉื‘ื™ ื”ืžื“ื™ื ื”.
02:30
So there is a benefit to state residents
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ื›ืš ืฉื™ืฉ ื™ืชืจื•ืŸ ืœืชื•ืฉื‘ื™ ื”ืžื“ื™ื ื”
02:32
that corresponds to the costs that they're paying
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ืฉืชื•ืื ืœืขืœื•ืช ืฉื”ื ืžืฉืœืžื™ื
02:34
by paying for these business tax breaks.
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ืขืœ-ื™ื“ื™ ืชืฉืœื•ื ืขื‘ื•ืจ ื”ืงืœื•ืช ืืœื• ื‘ืžืก ืขืกืงื™ื.
02:36
My argument is essentially that early childhood programs
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ื”ื˜ื™ืขื•ืŸ ืฉืœื™ ื”ื•ื ืœืžืขืฉื” ืฉืชื•ื›ื ื™ื•ืช ืœื’ื™ืœ ื”ืจืš
02:40
can do exactly the same thing,
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ื™ื›ื•ืœื•ืช ืœืขืฉื•ืช ื‘ื“ื™ื•ืง ืืช ืื•ืชื• ื”ื“ื‘ืจ,
02:44
create more and better jobs, but in a different way.
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ืœื™ืฆื•ืจ ืžืงื•ืžื•ืช ืขื‘ื•ื“ื” ืจื‘ื™ื ื™ื•ืชืจ ื•ื˜ื•ื‘ื™ื ื™ื•ืชืจ ืื‘ืœ ื‘ืฆื•ืจื” ืฉื•ื ื”.
02:48
It's a somewhat more indirect way.
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ื–ื•ื”ื™ ื“ืจืš ืขืงื™ืคื” ื‘ืžืงืฆืช .
02:50
These programs can promote more and better jobs by,
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ืชื•ื›ื ื™ื•ืช ืืœื” ื™ื›ื•ืœื•ืช ืœืงื“ื ืžืฉืจื•ืช ืจื‘ื•ืช ื™ื•ืชืจ ื•ื˜ื•ื‘ื•ืช ื™ื•ืชืจ ืขืœ ื™ื“ื™
02:54
you build it, you invest in high-quality preschool,
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ื›ืš ืฉืชื‘ื ื• ืื•ืชืŸ, ืืชื ืžืฉืงื™ืขื™ื ื‘ื’ื ื™ ื™ืœื“ื™ื ื‘ืื™ื›ื•ืช ื’ื‘ื•ื”ื”,
02:56
it develops the skills of your local workforce
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ื”ื ืžืคืชื—ื™ื ืืช ื”ื›ื™ืฉื•ืจื™ื ืฉืœ ื›ื•ื— ื”ืื“ื ื”ืžืงื•ืžื™ ืฉืœื›ื
03:00
if enough of them stick around, and, in turn,
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ืื ืžืกืคื™ืง ืžื”ื ื™ืฉืืจื• ื‘ืกื‘ื™ื‘ื”, ื•ื‘ื›ืš,
03:04
that higher-quality local workforce
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ื›ื•ื— ืขื‘ื•ื“ื” ืžืงื•ืžื™ ื‘ืื™ื›ื•ืช ื’ื‘ื•ื”ื” ื™ื•ืชืจ
03:06
will be a key driver of creating jobs and creating
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ื™ื”ื™ื” ื–ื” ืฉื™ื•ื‘ื™ืœ ื‘ื™ืฆื™ืจืช ืžืงื•ืžื•ืช ืขื‘ื•ื“ื” ื•ื™ืฆื™ืจืช
03:11
higher earnings per capita in the local community.
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ืจื•ื•ื—ื™ื ื’ื‘ื•ื”ื™ื ื™ื•ืชืจ ืœื ืคืฉ ื‘ืงื”ื™ืœื” ื”ืžืงื•ืžื™ืช.
03:13
Now, let me turn to some numbers on this.
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ืขื›ืฉื™ื•, ืชื ื• ืœื™ ืœืคื ื•ืช ืœื›ืžื” ืžืกืคืจื™ื ืขืœ ื–ื”.
03:16
Okay. If you look at the research evidence --
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ื˜ื•ื‘,. ืื ืืชื ืžืกืชื›ืœื™ื ืขืœ ืจืื™ื•ืช ื”ืžื—ืงืจ-
03:21
that's extensive -- on how much early childhood programs
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ืฉื”ื•ื ืžืงื™ืฃ - ืขื“ ื›ืžื” ืชื•ื›ื ื™ื•ืช ื”ื™ืœื“ื•ืช ื”ืžื•ืงื“ืžืช
03:26
affect the educational attainment, wages and skills
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ืžืฉืคื™ืขื•ืช ืขืœ ืจื›ื™ืฉืช ื”ืฉื›ืœื”, ืงื‘ืœืช ืฉื›ืจ ื•ืคื™ืชื•ื— ืžื™ื•ืžื ื•ื™ื•ืช
03:30
of former participants in preschool as adults,
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ืฉืœ ื™ืœื“ื™ ื”ื’ืŸ ืœืฉืขื‘ืจ - ื›ืžื‘ื•ื’ืจื™ื,
03:34
you take those known effects,
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ืืชื ืœื•ืงื—ื™ื ืชื•ืฆืื•ืช ื™ื“ื•ืขื•ืช ืืœื•,
03:36
you take how many of those folks will be expected
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ืืชื ืžืขืจื™ื›ื™ื ื›ืžื” ืžืื ืฉื™ื ืืœื” ื™ื”ื™ื• ืฆืคื•ื™ื™ื
03:39
to stick around the state or local economy and not move out,
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ืœื”ืฉืืจ ื‘ืจื—ื‘ื™ ื”ืžื“ื™ื ื” ืื• ื”ื›ืœื›ืœื” ื”ืžืงื•ืžื™ืช, ื•ืœื ืœืขืงื•ืจ
03:43
and you take research on how much skills
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ื•ืืชื ืขื•ืฉื™ื ืžื—ืงืจ ืขืœ ื›ืžื” ืžื™ื•ืžื ื•ื™ื•ืช
03:47
drive job creation, you will conclude,
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ืžื ื™ืขื•ืช ื™ืฆื™ืจืช ืžืงื•ืžื•ืช ืขื‘ื•ื“ื” , ืชืกื™ืงื•,
03:50
from these three separate lines of research,
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ืžื›ืœ ืฉืœื•ืฉื” ืงื•ื•ื™ื ื ืคืจื“ื™ื ืืœื” ืฉืœ ืžื—ืงืจ,
03:52
that for every dollar invested in early childhood programs,
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ืฉืขื‘ื•ืจ ื›ืœ ื“ื•ืœืจ ืฉืžื•ืฉืงืข ื‘ืชื•ื›ื ื™ื•ืช ืœื’ื™ืœ ื”ืจืš,
03:56
the per capita earnings of state residents
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ื”ืจื•ื•ื—ื™ื ืœื ืคืฉ ืฉืœ ืชื•ืฉื‘ื™ ื”ืžื“ื™ื ื”
03:59
go up by two dollars and 78 cents,
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ืขื•ืœื™ื ื‘-2 ื“ื•ืœืจื™ื, ื•-78 ืกื ื˜,
04:02
so that's a three-to-one return.
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ืื– ื–ื• ืชืฉื•ืื” ืฉืœ ืฉืœื•ืฉื”-ืœืื—ื“.
04:04
Now you can get much higher returns,
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ืขื›ืฉื™ื• ืืชื ื™ื›ื•ืœื™ื ืœืงื‘ืœ ืชืฉื•ืื” ื’ื‘ื•ื”ื” ื™ื•ืชืจ,
04:07
of up to 16-to-one, if you include anti-crime benefits,
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ืฉืœ ืขื“ 16-ืœืื—ื“, ืื ืืชื ื›ื•ืœืœื™ื ื™ืชืจื•ื ื•ืช ืื ื˜ื™-ืขื‘ืจื™ื™ื ื™ื™ื,
04:11
if you include benefits to former preschool participants
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ืื ืืชื ื›ื•ืœืœื™ื ื”ื˜ื‘ื•ืช ืœื™ืœื“ื™ ื”ื’ืŸ ืœืฉืขื‘ืจ
04:16
who move to some other state,
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ืฉืขื•ื‘ืจื™ื ืœืžื“ื™ื ื•ืช ืื—ืจื•ืช
04:18
but there's a good reason for focusing on these three dollars
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ืื‘ืœ ื™ืฉ ืกื™ื‘ื” ื˜ื•ื‘ื” ืœื”ืชืžืงื“ ืขืœ ืฉืœื•ืฉื” ื“ื•ืœืจ ืืœื”
04:21
because this is salient and important
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ื›ื™ ื–ื” ื ื™ื›ืจ ื•ื—ืฉื•ื‘
04:23
to state legislators and state policy makers,
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ืœืžื—ื•ืงืงื™ ื”ืžื“ื™ื ื” ื•ืงื•ื‘ืขื™ ื”ืžื“ื™ื ื™ื•ืช ืฉืœื”
04:25
and it's the states that are going to have to act.
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ื•ื”ืžื“ื™ื ื•ืช ื”ืŸ ืืœื• ืฉื™ืฆื˜ืจื›ื• ืœืคืขื•ืœ.
04:27
So there is this key benefit that is relevant
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ื›ืš ืฉื™ืฉื ื• ื™ืชืจื•ืŸ ืžืจื›ื–ื™ ื–ื” ืฉื”ื•ื ืจืœื•ื•ื ื˜ื™
04:31
to state policy makers in terms of economic development.
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ืœืงื•ื‘ืขื™ ื”ืžื“ื™ื ื™ื•ืช ื‘ืžื“ื™ื ื” ื‘ืžื•ื ื—ื™ื ืฉืœ ืคื™ืชื•ื— ื›ืœื›ืœื™.
04:34
Now, one objection you often hear,
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ืขื›ืฉื™ื•, ื”ืชื ื’ื“ื•ืช ืื—ืช ืฉืืชื ืฉื•ืžืขื™ื ืœืขืชื™ื ืงืจื•ื‘ื•ืช,
04:37
or maybe you don't hear it because people are too polite to say it, is,
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ืื• ืื•ืœื™ ืื™ื ื›ื ืฉื•ืžืขื™ื ืื•ืชื” ื›ื™ ืื ืฉื™ื ืžื ื•ืžืกื™ื ืžื›ื“ื™ ืœื•ืžืจ ื–ืืช,
04:42
why should I pay more taxes
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ืžื“ื•ืข ืขืœื™ ืœืฉืœื ื™ื•ืชืจ ืžืกื™ื
04:47
to invest in other people's children?
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ื›ื“ื™ ืœื”ืฉืงื™ืข ื‘ื™ืœื“ื™ื ืฉืœ ืื ืฉื™ื ืื—ืจื™ื?
04:51
What's in it for me?
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ืžื” ื–ื” ื ื•ืชืŸ ืœื™?
04:54
And the trouble with that objection,
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ื•ื”ืฆืจื” ืขื ื”ืชื ื’ื“ื•ืช ื–ื•,
04:56
it reflects a total misunderstanding
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ื”ื™ื ืžืฉืงืคืช ืื™ ื”ื‘ื ื” ื’ืžื•ืจื” ืฉืœ
05:00
of how much local economies
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ืขื“ ื›ืžื” ื›ืœื›ืœื•ืช ืžืงื•ืžื™ื•ืช
05:03
involve everyone being interdependent.
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ืžืขืจื‘ื•ืช ืืช ื›ื•ืœื ืฉืžืฆื•ื™ื™ื ื‘ืชืœื•ืช ื”ื“ื“ื™ืช.
05:06
Specifically, the interdependency here is, is that
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ื‘ืžื™ื•ื—ื“, ื”ืชืœื•ืช ื”ื”ื“ื“ื™ืช ื›ืืŸ ื”ื™ื,
05:10
there are huge spillovers of skills --
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ืฉื™ืฉ ื’ืœื™ืฉื” ืขื ืงื™ืช ืฉืœ ื›ื™ืฉื•ืจื™ื-
05:14
that when other people's children get more skills,
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ืฉื›ืืฉืจ ื™ืœื“ื™ื ืฉืœ ืื ืฉื™ื ืื—ืจื™ื, ืžืงื‘ืœื™ื ื™ื•ืชืจ ื›ื™ืฉื•ืจื™ื,
05:19
that actually increases the prosperity of everyone,
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ื–ื” ืœืžืขืฉื” ืžื’ื‘ื™ืจ ืืช ื”ืฉื’ืฉื•ื’ ืฉืœ ื›ื•ืœื,
ื›ื•ืœืœ ืื ืฉื™ื ืฉื›ื™ืฉื•ืจื™ื”ื ืœื ืžืฉืชื ื™ื.
05:23
including people whose skills don't change.
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05:26
So for example, numerous research studies have shown
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ื›ืš ืœืžืฉืœ, ืžื—ืงืจื™ื ืจื‘ื™ื ื”ืจืื•
05:29
if you look at what really drives
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ืื ืžืกืชื›ืœื™ื ืขืœ ืžื” ื‘ืืžืช ืžื ื™ืข
05:31
the growth rate of metropolitan areas,
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ืืช ืงืฆื‘ ื”ื’ื™ื“ื•ืœ ืฉืœ ืื–ื•ืจื™ ืžื˜ืจื•ืคื•ืœื™ืŸ,
05:34
it's not so much low taxes, low cost, low wages;
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ื–ื” ืœื ื›ืœ ื›ืš ืžื™ืกื•ื™ ื ืžื•ืš, ืขืœื•ืช ื ืžื•ื›ื”, ืฉื›ืจ ื ืžื•ืš;
05:39
it's the skills of the area. Particularly, the proxy for skills
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ืืœื” ื”ื ื”ื›ื™ืฉื•ืจื™ื ืฉืœ ื”ืื–ื•ืจ. ื‘ืžื™ื•ื—ื“, ื‘ื–ื›ื•ืช ื›ื™ืฉื•ืจื™ื
05:43
that people use is percentage of college graduates in the area.
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ืฉืื ืฉื™ื ืžืฉืชืžืฉื™ื ื‘ื• ื”ื•ื ืื—ื•ื– ื‘ื•ื’ืจื™ ื”ืžื›ืœืœื•ืช ื‘ืื–ื•ืจ.
05:47
So when you look, for example, at metropolitan areas
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ืื– ื›ืืฉืจ ืžืกืชื›ืœื™ื, ืœื“ื•ื’ืžื”, ื‘ืื–ื•ืจื™ ื”ืขืจื™ื ื”ื’ื“ื•ืœื•ืช
05:50
such as the Boston area, Minneapolis-St. Paul,
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ื›ืžื• ื‘ืื–ื•ืจ ื‘ื•ืกื˜ื•ืŸ, ืžื™ื ื™ืืคื•ืœื™ืก-ืกื™ื™ื ื˜-ืคื•ืœ
05:53
Silicon Valley, these areas are not doing well economically
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ืขืžืง ื”ืกื™ืœื™ืงื•ืŸ, ืื–ื•ืจื™ื ืืœื” ืื™ื ื ืžืฆืœื™ื—ื™ื ื›ืœื›ืœื™ืช
05:58
because they're low-cost.
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ื‘ื’ืœืœ ืฉื”ื ื‘ืขืœื™ ืขืœื•ืช ื ืžื•ื›ื”.
06:01
I don't know if you ever tried to buy a house in Silicon Valley.
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ืื ื™ ืœื ื™ื•ื“ืข ืื ืื™ ืคืขื ื ื™ืกื™ืชื ืœืงื ื•ืช ื‘ื™ืช ื‘ืขืžืง ื”ืกื™ืœื™ืงื•ืŸ.
06:03
It's not exactly a low-cost proposition.
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ื–ื• ืœื ื‘ื“ื™ื•ืง ื”ืฆืขื” ื‘ืขืœื•ืช ื ืžื•ื›ื”.
06:05
They are growing because they have high levels of skills.
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ื”ื ื’ื“ืœื™ื ื›ื™ ื™ืฉ ืœื”ื ืจืžื•ืช ื’ื‘ื•ื”ื•ืช ืฉืœ ืžื™ื•ืžื ื•ื™ื•ืช.
06:11
So when we invest in other people's children,
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ืื– ื›ืืฉืจ ืื ื• ืžืฉืงื™ืขื™ื ื‘ื™ืœื“ื™ื ืฉืœ ืื—ืจื™ื,
ื•ื‘ื•ื ื™ื ืืช ื”ื›ื™ืฉื•ืจื™ื ื”ืืœื”, ืื ื• ืžื’ื‘ื™ืจื™ื ืฆืžื™ื—ืช ืžืงื•ืžื•ืช ืขื‘ื•ื“ื” ื›ืœืœื™ืช
06:15
and build up those skills, we increase the overall job growth
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06:19
of a metro area.
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ืฉืœ ืื–ื•ืจ ืžื˜ืจื•ืคื•ืœื™ืŸ.
06:20
As another example, if we look
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ื›ื“ื•ื’ืžื ืื—ืจืช, ืื ืžืกืชื›ืœื™ื
06:24
at what determines an individual's wages,
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ืขืœ ืžื” ืฉืงื•ื‘ืข ืืช ืฉื›ืจื• ืฉืœ ื”ื™ื—ื™ื“,
06:27
and we do statistical exploration of that, what determines wages,
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ื•ื—ื•ืงืจื™ื ื–ืืช ืกื˜ื˜ื™ืกื˜ื™ืช, ืžื” ืงื•ื‘ืข ืืช ื’ื•ื‘ื” ื”ืฉื›ืจ,
06:32
we know that the individual's wages will depend, in part,
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ืื ื• ื™ื•ื“ืขื™ื ืฉืฉื›ืจื• ืฉืœ ื”ื™ื—ื™ื“ ื™ื”ื™ื” ืชืœื•ื™ ื‘ื—ืœืงื•,
06:36
on that individual's education,
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ื‘ื”ืฉื›ืœื” ืฉืœื•,
ืœื“ื•ื’ืžื, ื‘ืื ืื• ืœื ื™ืฉ ืœื”ื ืชื•ืืจ ืืงื“ืžื™.
06:39
for example whether or not they have a college degree.
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06:42
One of the very interesting facts is that, in addition,
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ืื—ืช ื”ืขื•ื‘ื“ื•ืช ื”ืžืขื ื™ื ื•ืช ื”ื™ื, ืฉื‘ื ื•ืกืฃ,
06:45
we find that even once we hold constant, statistically,
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ืื ื• ืžื•ืฆืื™ื ื›ื™ ืืคื™ืœื• ื›ืืฉืจ, ื™ืฉ ื‘ื™ื“ื™ื ื• ืžืฉืชื ื” ืงื‘ื•ืข, ืžื‘ื—ื™ื ื” ืกื˜ื˜ื™ืกื˜ื™ืช,
06:49
the effect of your own education,
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ืืช ื”ืฉืคืขืช ื”ื—ื™ื ื•ืš ืฉืœื›ื,
06:52
the education of everyone else in your metropolitan area
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ื”ื—ื™ื ื•ืš ืฉืœ ื›ื•ืœื ื‘ืื–ื•ืจ ื”ืžื˜ืจื•ืคื•ืœื™ืŸ ืฉืœื›ื
06:55
also affects your wages.
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ื’ื ื›ืŸ ืžืฉืคื™ืข ืขืœ ื”ืฉื›ืจ ืฉืœื›ื.
06:57
So specifically, if you hold constant your education,
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ืื– ื‘ืžืคื•ืจืฉ, ืื ืืชื ืžื—ื–ื™ืงื™ื ืžืฉืชื ื” ืงื‘ื•ืข ืฉืœ ื”ื”ืฉื›ืœื” ืฉืœื›ื,
07:01
you stick in percentage of college graduates in your metro area,
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ืืชื ื ืฆืžื“ื™ื ืœืื—ื•ื–ื™ื ืฉืœ ื‘ื•ื’ืจื™ ื”ืžื›ืœืœื” ื‘ืื–ื•ืจ ื”ืžื˜ืจื• ืฉืœื›ื,
07:05
you will find that has a significant positive effect on your wages
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ืชืžืฆืื• ืฉื™ืฉ ืœื›ืš ื”ืฉืคืขื” ื—ื™ื•ื‘ื™ืช ืžืฉืžืขื•ืชื™ืช ืขืœ ื”ืฉื›ืจ ืฉืœื›ื
07:09
without changing your education at all.
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ืžื‘ืœื™ ืœืฉื ื•ืช ืืช ื”ื—ื™ื ื•ืš ืฉืœื›ื ื‘ื›ืœืœ.
07:13
In fact, this effect is so strong
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ืœืžืขืฉื”, ืืคืงื˜ ื–ื” ื”ื•ื ื›ืœ ื›ืš ื—ื–ืง
07:16
that when someone gets a college degree,
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ืฉื›ืฉืžื™ืฉื”ื• ืžืงื‘ืœ ืชื•ืืจ ืืงื“ืžื™,
07:20
the spillover effects of this on the wages
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ื’ืœื™ืฉืช ื”ื”ืฉืคืขื•ืช ืฉืœ ื–ื” ืขืœ ื”ืฉื›ืจ
07:22
of others in the metropolitan area
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ืฉืœ ืื—ืจื™ื ื‘ืื–ื•ืจ ื”ืžื˜ืจื•ืคื•ืœื™ืŸ
07:24
are actually greater than the direct effects.
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ื”ื ืœืžืขืฉื” ื’ื“ื•ืœื™ื ื™ื•ืชืจ ืžื”ื”ืฉืคืขื•ืช ื”ื™ืฉื™ืจื•ืช.
07:27
So if someone gets a college degree, their lifetime earnings
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ืื– ืื ืžื™ืฉื”ื• ืžืงื‘ืœ ืชื•ืืจ ืืงื“ืžื™, ื”ืจื•ื•ื—ื™ื ืฉืœื”ื ืœื›ืœ ื”ื—ื™ื™ื
07:31
go up by a huge amount, over 700,000 dollars.
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ื™ืขืœื• ื‘ืžื™ื“ื” ืขืฆื•ืžื”, ืžืขืœ 700,000 ื“ื•ืœืจ.
07:34
There's an effect on everyone else in the metro area
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ื™ืฉ ื”ืฉืคืขื” ืขืœ ื›ื•ืœื ื‘ืื–ื•ืจ ื”ืžื˜ืจื•
07:36
of driving up the percentage of college graduates in the metro area,
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ืฉืœ ื”ืขืœืื” ืžืขืœื” ืฉืœ ืื—ื•ื– ื‘ื•ื’ืจื™ ื”ืžื›ืœืœื•ืช ื‘ืื–ื•ืจ ื”ืžื˜ืจื•,
07:40
and if you add that up -- it's a small effect for each person,
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ื•ืื ืืชื ืžื•ืกื™ืคื™ื ื•ืžืขืœื™ื ื–ืืช - ื–ื” ื”ื•ื ืืคืงื˜ ืงื˜ืŸ ืขื‘ื•ืจ ื›ืœ ืื“ื,
07:44
but if you add that up across all the people in the metro area,
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ืื‘ืœ ืื ืืชื ืžื•ืกื™ืคื™ื ื•ืžืขืœื™ื ื–ืืช ืขืœ ืคื ื™ ื›ืœ ื”ืื ืฉื™ื ื‘ืื–ื•ืจ ื”ืžื˜ืจื•,
07:47
you actually get that the increase in wages for everyone else
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ืืชื ืœืžืขืฉื” ืžื‘ื™ื ื™ื ืฉื”ืขืœื™ื™ื” ื‘ืฉื›ืจ ืขื‘ื•ืจ ื›ื•ืœื
07:51
in the metropolitan area adds up to almost a million dollars.
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ื‘ืื–ื•ืจ ื”ืžื˜ืจื•ืคื•ืœื™ืŸ ืžืชื•ื•ืกืคืช ืขื“ ืœื›ืžืขื˜ ืžื™ืœื™ื•ืŸ ื“ื•ืœืจ.
07:54
That's actually greater than the direct benefits
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ื–ื”ื• ืœืžืขืฉื” ื™ื•ืชืจ ืžื”ื™ืชืจื•ื ื•ืช ื”ื™ืฉื™ืจื™ื
07:56
of the person choosing to get education.
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ืฉืœ ื”ืื“ื ืฉื‘ื•ื—ืจ ืœืงื‘ืœ ื—ื™ื ื•ืš.
07:59
Now, what's going on here?
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ืขื›ืฉื™ื•, ืžื” ืงื•ืจื” ื›ืืŸ?
08:00
What can explain these huge spillover effects of education?
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ืžื” ื™ื›ื•ืœ ืœื”ืกื‘ื™ืจ ืืคืงื˜ื™ ื’ืœื™ืฉื” ืขืฆื•ืžื™ื ืืœื” ืฉืœ ื—ื™ื ื•ืš?
ื˜ื•ื‘, ื‘ื•ืื• ื•ื ื—ืฉื•ื‘ ืขืœ ื›ืš ื‘ื“ืจืš ื–ื•.
08:04
Well, let's think about it this way.
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08:06
I can be the most skilled person in the world,
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ื‘ื™ื›ื•ืœืชื™ ืœื”ื™ื•ืช ื”ืื“ื ื”ืžื™ื•ืžืŸ ื‘ื™ื•ืชืจ ื‘ืขื•ืœื,
08:09
but if everyone else at my firm lacks skills,
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ืืš ืื ื›ืœ ื”ืื—ืจื™ื ื‘ื—ื‘ืจื” ืฉืœื™ ืžื—ื•ืกืจื™ ื›ื™ืฉื•ืจื™ื,
08:13
my employer is going to find it more difficult
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ื”ืžืขืกื™ืง ืฉืœื™ ื™ืžืฆื ืฉื–ื” ื™ื•ืชืจ ืงืฉื”
08:16
to introduce new technology, new production techniques.
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ืœื”ื—ื“ื™ืจ ื˜ื›ื ื•ืœื•ื’ื™ื” ื—ื“ืฉื”, ื˜ื›ื ื™ืงื•ืช ื™ื™ืฆื•ืจ ื—ื“ืฉื•ืช,
08:20
So as a result, my employer is going to be less productive.
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ืื– ื›ืชื•ืฆืื” ืžื›ืš, ื”ืžืขื‘ื™ื“ ืฉืœื™ ื™ื”ื™ื” ืคื—ื•ืช ืคืจื•ื“ื•ืงื˜ื™ื‘ื™.
08:23
They will not be able to afford to pay me as good wages.
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ื”ื ืœื ื™ื•ื›ืœื• ืœื”ืจืฉื•ืช ืœืขืฆืžื ืœืฉืœื ืœื™ ืฉื›ืจ ื›ื” ื˜ื•ื‘.
08:27
Even if everyone at my firm has good skills,
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ืืคื™ืœื• ืื ืœื›ื•ืœื ื‘ื—ื‘ืจื” ืฉืœื™ ื™ืฉ ื›ื™ืฉื•ืจื™ื ื˜ื•ื‘ื™ื,
08:31
if the workers at the suppliers to my firm
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ืื ืœืขื•ื‘ื“ื™ื ืืฆืœ ื”ืกืคืงื™ื ืœื—ื‘ืจื” ืฉืœื™
08:34
do not have good skills,
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ืื™ืŸ ื›ื™ืฉื•ืจื™ื ื˜ื•ื‘ื™ื,
08:36
my firm is going to be less competitive
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ื”ื—ื‘ืจื” ืฉืœื™ ืชื”ื™ื” ืคื—ื•ืช ืชื—ืจื•ืชื™ืช
08:39
competing in national and international markets.
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ื‘ืชื—ืจื•ืช ื‘ืฉื•ื•ืงื™ื ืืจืฆื™ื™ื ื•ื‘ื™ื ืœืื•ืžื™ื™ื.
08:41
And again, the firm that's less competitive
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ื•ืฉื•ื‘, ื”ื—ื‘ืจื” ื”ืคื—ื•ืช ืชื—ืจื•ืชื™ืช
08:44
will not be able to pay as good wages,
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ืœื ืชื•ื›ืœ ืœืฉืœื ืžืฉื›ื•ืจื•ืช ื™ืคื•ืช,
ื•ืื–, ื‘ืขื™ืงืจ ื‘ื—ื‘ืจื•ืช ื”ื™-ื˜ืง,
08:47
and then, particularly in high-tech businesses,
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ื‘ื—ื‘ืจื•ืช ื”ื™ื™ื˜ืง ื›ืœ ื”ื–ืžืŸ ื’ื•ื ื‘ื™ื ืจืขื™ื•ื ื•ืช ื•ืขื•ื‘ื“ื™ื ืžื—ื‘ืจื•ืช ืื—ืจื•ืช.
08:51
they're constantly stealing ideas and workers from other businesses.
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08:54
So clearly the productivity of firms in Silicon Valley
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ืื– ื‘ืจื•ืจ ืฉืœืคืจื•ื“ื•ืงื˜ื™ื‘ื™ื•ืช ืฉืœ ื—ื‘ืจื•ืช ื‘ืขืžืง ื”ืกื™ืœื™ืงื•ืŸ
08:57
has a lot to do with the skills not only of the workers at their firm,
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ื™ืฉ ื”ืจื‘ื” ืงืฉืจ ืœืžื™ื•ืžื ื•ื™ื•ืช ืœื ืจืง ืฉืœ ื”ืขื•ื‘ื“ื™ื ืฉืœื”ื,
09:01
but the workers at all the other firms in the metro area.
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ืืœื ืœืขื•ื‘ื“ื™ื ื‘ื›ืœ ื”ื—ื‘ืจื•ืช ื”ืื—ืจื•ืช ื‘ืื–ื•ืจ ื”ืžื˜ืจื•.
09:06
So as a result, if we can invest in other people's children
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ืื– ื›ืชื•ืฆืื”, ืื ืื ื• ื™ื›ื•ืœื™ื ืœื”ืฉืงื™ืข ื‘ื™ืœื“ื™ื”ื ืฉืœ ืื ืฉื™ื ืื—ืจื™ื
09:09
through preschool and other early childhood programs
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ื‘ืืžืฆืขื•ืช ื’ืŸ ื”ื™ืœื“ื™ื ื•ืชื•ื›ื ื™ื•ืช ืื—ืจื•ืช ืœื’ื™ืœ ื”ืจืš
09:11
that are high-quality, we not only help those children,
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ื‘ืื™ื›ื•ืช ื’ื‘ื•ื”ื”, ืื ื• ืœื ืจืง ืขื•ื–ืจื™ื ืœื™ืœื“ื™ื ืืœื”
09:15
we help everyone in the metropolitan area
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ืื ื• ืขื•ื–ืจื™ื ืœื›ื•ืœื ื‘ืื–ื•ืจ ื”ืžื˜ืจื•ืคื•ืœื™ืŸ
09:19
gain in wages and we'll have the metropolitan area
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ืœื–ื›ื•ืช ื‘ืฉื›ืจ, ื•ืื–ื•ืจ ื”ืžื˜ืจื•ืคื•ืœื™ืŸ.
09:22
gain in job growth.
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ื™ื–ื›ื” ื‘ืฆืžื™ื—ื” ืฉืœ ืžืงื•ืžื•ืช ืขื‘ื•ื“ื”.
09:24
Another objection used sometimes here
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ื”ืชื ื’ื“ื•ืช ื ื•ืกืคืช ืฉืžื•ืขืœื™ืช ืœืคืขืžื™ื
09:27
to invest in early childhood programs
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ื‘ืœื”ืฉืงื™ืข ื‘ืชื•ื›ื ื™ื•ืช ื—ื™ื ื•ืš ืœื’ื™ืœ ื”ืจืš
09:29
is concern about people moving out.
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ื”ื™ื ื”ื“ืื’ื” ืฉืื ืฉื™ื ื™ืขื‘ืจื• ืœืžืงื•ืžื•ืช ืื—ืจื™ื.
09:33
So, you know, maybe Ohio's thinking about investing
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ืื–, ืืชื ื™ื•ื“ืขื™ื, ืื•ืœื™ ื‘ืื•ื”ื™ื• ื—ื•ืฉื‘ื™ื ืขืœ
09:37
in more preschool education
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ื”ืฉืงืขื” ื‘ื™ื•ืชืจ ื—ื™ื ื•ืš ืœื’ื™ืœ ื”ืจืš
09:39
for children in Columbus, Ohio,
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ืขื‘ื•ืจ ื”ื™ืœื“ื™ื ื‘ืงื•ืœื•ืžื‘ื•ืก, ืื•ื”ื™ื•,
09:43
but they're worried that these little Buckeyes will,
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ืื‘ืœ ื”ื ืžื•ื“ืื’ื™ื ืฉ"ื‘ืง-ืื™ื™ืก" (ืงื‘' ืกืคื•ืจื˜) ืงื˜ื ื•ืช ืืœื•,
09:45
for some strange reason, decide to move to Ann Arbor, Michigan,
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ืžืกื™ื‘ื” ืžื•ื–ืจื” ื›ืœืฉื”ื™, ืžื—ืœื™ื˜ื™ื ืœืขื‘ื•ืจ ืœืืŸ ืืจื‘ื•ืจ, ืžื™ืฉื™ื’ืŸ,
09:48
and become Wolverines.
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ื•ืœื™ื”ืคืš ืœ"ื•ื•ืœื‘ืจื™ื ืก" (ืงื‘. ืกืคื•ืจื˜ ืฉืœ ืžื™ืฉื™ื’ืŸ).
09:50
And maybe Michigan will be thinking about investing
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ื•ืื•ืœื™ ืžืฉื™ื’ืŸ ืชื—ืฉื•ื‘ ืœื”ืฉืงื™ืข
09:53
in preschool in Ann Arbor, Michigan, and be worried
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ื‘ื’ื ื™ ื™ืœื“ื™ื ื‘ืืŸ ืืจื‘ื•ืจ, ืžื™ืฉื™ื’ืŸ, ื•ืชื”ื™ื” ืžื•ื“ืื’ืช
09:56
these little Wolverines will end up moving to Ohio and becoming Buckeyes.
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ืฉ"ื•ื•ืœื‘ืจื™ื ืก" ืงื˜ื ื™ื ืืœื” ื™ืขื‘ืจื• ื‘ืกื•ืคื• ืฉืœ ื“ื‘ืจ ืœืื•ื”ื™ื• ื•ื™ื™ื”ืคื›ื• ืœ"ื‘ืง-ืื™ื™ืก".
09:59
And so they'll both underinvest because everyone's going to move out.
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ื•ื›ืš ืฉื ื™ื”ื ื™ืžืขื˜ื• ืœื”ืฉืงื™ืข ื›ื™ ื›ื•ืœื ื”ื•ืœื›ื™ื ืœืขื‘ื•ืจ ืžืฉื.
10:03
Well, the reality is, if you look at the data,
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ื˜ื•ื‘, ื”ืžืฆื™ืื•ืช ื”ื™ื, ืื ืชืกืชื›ืœื• ืขืœ ื”ื ืชื•ื ื™ื,
10:06
Americans aren't as hyper-mobile as people sometimes assume.
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ืืžืจื™ืงืื™ื ืื™ื ื ื›ื” ื”ื™ืคืจ-ืžืชื ื™ื™ื“ื™ื ื›ืคื™ ืฉื ื•ื˜ื™ื ืœืคืขืžื™ื ืœื—ืฉื•ื‘.
10:10
The data is that over 60 percent of Americans
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ื”ื ืชื•ื ื™ื ื”ื ืฉืžืขืœ 60 ืื—ื•ื– ืฉืœ ื”ืืžืจื™ืงืื™ื
10:15
spend most of their working careers
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ืžื‘ืœื™ื ืืช ืจื•ื‘ ืฉื ื•ืช ื”ืงืจื™ื™ืจื” ืฉืœื”ื,
10:18
in the state they were born in, over 60 percent.
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ื‘ืžื“ื™ื ื” ื‘ื” ื”ื ื ื•ืœื“ื•, ืžืขืœ 60 ืื—ื•ื–.
10:21
That percentage does not vary much from state to state.
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ืื—ื•ื– ื–ื” ืื™ื ื• ืžืฉืชื ื” ื”ืจื‘ื” ืžืžื“ื™ื ื” ืœืžื“ื™ื ื”.
10:25
It doesn't vary much with the state's economy,
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ื”ื•ื ืื™ื ื• ืžืฉืชื ื” ื”ืจื‘ื” ืขื ื›ืœื›ืœืช ื”ืžื“ื™ื ื”,
10:29
whether it's depressed or booming,
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ื‘ืื ื”ื™ื ื‘ืฉืคืœ ืื• ื‘ืคืจื™ื—ื”,.
10:30
it doesn't vary much over time.
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ื”ื•ื ืœื ืžืฉืชื ื” ื”ืจื‘ื” ื‘ืžืฉืš ื”ื–ืžืŸ.
10:33
So the reality is, if you invest in kids,
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ืื– ื”ืžืฆื™ืื•ืช ื”ื™ื, ืื ืžืฉืงื™ืขื™ื ื‘ื™ืœื“ื™ื,
10:38
they will stay.
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ื”ื ื™ืฉืืจื•.
10:41
Or at least, enough of them will stay
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ืื• ืœืคื—ื•ืช ืžืกืคื™ืง ืžื”ื ื™ืฉืืจื•
10:44
that it will pay off for your state economy.
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ืฉื–ื” ื™ืฉืชืœื ืœืžื“ื™ื ื” ืฉืœื›ื.
10:47
Okay, so to sum up, there is a lot of research evidence
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ื˜ื•ื‘, ืื– ืœืกื™ื›ื•ื, ื™ืฉ ื”ืจื‘ื” ืจืื™ื•ืช ืžื—ืงืจ
10:51
that early childhood programs, if run in a high-quality way,
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ืฉืชื•ื›ื ื™ื•ืช ืœื’ื™ืœ ื”ืจืš, ืื ืžื ื•ื”ืœื•ืช ื‘ืจืžื” ื’ื‘ื•ื”ื”
10:54
pay off in higher adult skills.
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ื ื•ืฉืื•ืช ืจื•ื•ื—ื™ื ื‘ืžื™ื•ืžื ื•ื™ื•ืช ื’ื‘ื•ื”ื•ืช ื™ื•ืชืจ ื‘ืžื‘ื•ื’ืจื™ื.
10:57
There's a lot of research evidence
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ื™ืฉ ื”ืจื‘ื” ืจืื™ื•ืช ืžื—ืงืจ
10:59
that those folks will stick around the state economy,
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ืฉืื ืฉื™ื ืืœื” ื™ื“ื‘ืงื• ืกื‘ื™ื‘ ื”ื›ืœื›ืœื” ืฉืœ ื”ืžื“ื™ื ื”,
ื•ื™ืฉ ื”ืžื•ืŸ ืจืื™ื•ืช ืฉื›ืฉื™ืฉ ื™ื•ืชืจ ืขื•ื‘ื“ื™ื
11:03
and there's a lot of evidence that having more workers
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11:06
with higher skills in your local economy
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ื‘ืขืœื™ ื›ื™ืฉื•ืจื™ื ื’ื‘ื•ื”ื™ื ื‘ื›ืœื›ืœื” ื”ืžืงื•ืžื™ืช ืฉืœื›ื
11:08
pays off in higher wages and job growth for your local economy,
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ื–ื” ืžืฉืชืœื ื‘ืฉื›ืจ ื’ื‘ื•ื” ื™ื•ืชืจ ื•ืฆืžื™ื—ื” ืฉืœ ืžืงื•ืžื•ืช ืขื‘ื•ื“ื” ืขื‘ื•ืจ ื”ื›ืœื›ืœื” ื”ืžืงื•ืžื™ืช ืฉืœื›ื,
11:12
and if you calculate the numbers for each dollar,
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ื•ืื ืชื—ืฉื‘ื• ืืช ื”ืžืกืคืจื™ื ืขื‘ื•ืจ ื›ืœ ื“ื•ืœืจ,
11:15
we get about three dollars back
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ืื ื—ื ื• ืžืงื‘ืœื™ื 3 ื“ื•ืœืจ ื—ื–ืจื”
11:18
in benefits for the state economy.
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ื‘ื™ืชืจื•ื ื•ืช ืœืžืฉืง ื”ืžื“ื™ื ื”.
11:20
So in my opinion, the research evidence is compelling
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ืื– ืœื“ืขืชื™, ืจืื™ื•ืช ื”ืžื—ืงืจ ืžืฉื›ื ืขื•ืช
11:24
and the logic of this is compelling.
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ื•ื”ื”ื™ื’ื™ื•ืŸ ื‘ื›ืš ืžืฉื›ื ืข.
11:26
So what are the barriers to getting it done?
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ืื– ืžื”ื ื”ืžื—ืกื•ืžื™ื ืฉืžืคืจื™ืขื™ื ืœื”ืฉื™ื’ ื–ืืช?
11:30
Well, one obvious barrier is cost.
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ื˜ื•ื‘, ืžื—ืกื•ื ืื—ื“ ื›ืžื•ื‘ืŸ ื”ื•ื ืขืœื•ืช.
11:33
So if you look at what it would cost
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ืื– ืื ืชืกืชื›ืœื• ืขืœ ื›ืžื” ื–ื” ื™ืขืœื”
ืื ื›ืœ ืžืžืฉืœ ืžื“ื™ื ื” ื”ื™ื” ืžืฉืงื™ืข
11:38
if every state government invested
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11:41
in universal preschool at age four, full-day preschool at age four,
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ื‘ื’ืŸ ื™ืœื“ื™ื ืžืงื™ืฃ ื‘ื’ื™ืœ 4, ื™ื•ื ืœื™ืžื•ื“ื™ื ืžืœื ื‘ื’ื™ืœ 4,
11:45
the total annual national cost would be roughly
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ืกืš ื”ืขืœื•ืช ื”ืฉื ืชื™ืช ื”ืืจืฆื™ืช ืชื”ื™ื” ื‘ืขืจืš
11:48
30 billion dollars.
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30 ืžื™ืœื™ืืจื“ ื“ื•ืœืจ.
11:50
So, 30 billion dollars is a lot of money.
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ืื–, 30 ืžื™ืœื™ืืจื“ ื“ื•ืœืจ ื–ื” ื”ืจื‘ื” ื›ืกืฃ.
11:53
On the other hand, if you reflect on
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ืžืฆื“ ืฉื ื™ ืื ืืชื , ื—ื•ืฉื‘ื™ื ืขืœ
11:57
that the U.S.'s population is over 300 million,
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ื›ืš ืฉื”ืื•ื›ืœื•ืกื™ื” ืฉืœ ืืจื”"ื‘ ืžื•ื ื” ืžืขืœ 300 ืžื™ืœื™ื•ืŸ ื“ื•ืœืจ,
12:00
we're talking about an amount of money
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ืื ื—ื ื• ืžื“ื‘ืจื™ื ืขืœ ืกื›ื•ื ื›ืกืฃ
12:03
that amounts to 100 dollars per capita.
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ืฉืžื’ื™ืข ืœ- 100 ื“ื•ืœืจ ืœื ืคืฉ.
12:06
Okay? A hundred dollars per capita, per person,
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ื˜ื•ื‘? 100 ื“ื•ืœืจ ืœื ืคืฉ, ืœืื“ื,
12:09
is something that any state government can afford to do.
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ื–ื” ืžืฉื”ื• ืฉื›ืœ ืžืžืฉืœ ืžื“ื™ื ื” ื™ื›ื•ืœ ืœื”ืจืฉื•ืช ืœืขืฆืžื• ืœืขืฉื•ืช.
12:13
It's just a simple matter of political will to do it.
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ื–ื”ื• ืจืง ืขื ื™ื™ืŸ ืคืฉื•ื˜ ืฉืœ ืจืฆื•ืŸ ืคื•ืœื™ื˜ื™ ืœืขืฉื•ืช ื–ืืช.
12:18
And, of course, as I mentioned,
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ื•ื›ืžื•ื‘ืŸ, ื›ืคื™ ืฉืืžืจืชื™,
12:19
this cost has corresponding benefits.
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ืœืขืœื•ืช ื–ื• ื™ืฉ ื™ืชืจื•ื ื•ืช ืชื•ืืžื™ื.
12:22
I mentioned there's a multiplier of about three,
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ื”ื–ื›ืจืชื™ ืฉื”ืžื›ืคื™ืœ ืฉืœ ืฉืœื•ืฉื” ื‘ืขืจืš,
12:24
2.78, for the state economy,
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2.78, ืœืžืฉืง ื”ืžื“ื™ื ื”,
12:26
in terms of over 80 billion in extra earnings.
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ื‘ืžื•ื ื—ื™ื ืฉืœ ืžืขืœ 80 ืžื™ืœื™ืืจื“ ื‘ืฉื›ืจ ื ื•ืกืฃ.
12:29
And if we want to translate that from just billions of dollars
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ื•ืื ืชืจืฆื• ืœืชืจื’ื ื–ืืช ืžืคืฉื•ื˜ ืžื™ืœื™ืืจื“ื™ ื“ื•ืœืจื™ื
12:32
to something that might mean something,
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ืœืžืฉื”ื• ืฉืขืฉื•ื™ื” ืœื”ื™ื•ืช ืœื• ืžืฉืžืขื•ืช
12:34
what we're talking about is that, for the average low-income kid,
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ืžื” ืฉืื ื—ื ื• ืžื“ื‘ืจื™ื ืขืœื™ื• ื–ื”, ืขื‘ื•ืจ ื ืขืจ ืžืžื•ืฆืข ื‘ืขืœ ื”ื›ื ืกื” ื ืžื•ื›ื”,
12:37
that would increase earnings by about 10 percent
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ื–ื” ื™ื’ื“ื™ืœ ืืช ืฉื›ืจื• ื‘-10 ืื—ื•ื–ื™ื ื‘ืขืจืš
12:40
over their whole career, just doing the preschool,
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ืœืื•ืจืš ื›ืœ ื”ืงืจื™ื™ืจื” ืฉืœื”ื, ืจืง ืœืœืžื•ื“ ื‘ื’ืŸ,
12:44
not improving K-12 or anything else after that,
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ืœืœื ืฉื™ืคื•ืจ ื”ืœื™ืžื•ื“ื™ื ื‘ื‘ื™ืช ื”ืกืคืจ ืื• ื›ืœ ื“ื‘ืจ ืื—ืจ ืœืื—ืจ ืžื›ืŸ,
12:46
not doing anything with college tuition or access,
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ืœื ืขื•ืฉื” ื›ืœื•ื ืขื ืฉื›ืจ ื”ืœื™ืžื•ื“ ืื• ื”ื›ื ื™ืกื”,
12:49
just directly improving preschool,
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ืจืง ื™ืฉื™ืจื•ืช ื‘ืฉื™ืคื•ืจ ื”ื’ืŸ,
12:51
and we would get five percent higher earnings
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ื•ื”ื™ื™ื ื• ืžืงื‘ืœื™ื ืจื•ื•ื— ื’ื‘ื•ื” ื™ื•ืชืจ ืฉืœ ื—ืžื™ืฉื” ืื—ื•ื–ื™ื
12:54
for middle-class kids.
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ืœื™ืœื“ื™ื ืžื”ืžืขืžื“ ื”ื‘ื™ื ื•ื ื™.
12:55
So this is an investment
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ืื– ื–ื•ื”ื™ ื”ืฉืงืขื”
12:57
that pays off in very concrete terms
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ืฉืžืฉืชืœืžืช ื‘ืžื•ื ื—ื™ื ืžืžืฉื™ื™ื
13:00
for a broad range of income groups in the state's population
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ืขื‘ื•ืจ ืžื’ื•ื•ืŸ ืจื—ื‘ ืฉืœ ืงื‘ื•ืฆื•ืช ื”ื›ื ืกื” ื‘ืื•ื›ืœื•ืกื™ื™ื” ืฉืœ ื”ืžื“ื™ื ื”
13:05
and produces large and tangible benefits.
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ื•ืžื™ื™ืฆืจืช ื”ื˜ื‘ื•ืช ื’ื“ื•ืœื•ืช ื•ืžื•ื—ืฉื™ื•ืช.
13:09
Now, that's one barrier.
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ื›ืขืช, ื–ื” ืžื—ืกื•ื ืื—ื“.
13:12
I actually think the more profound barrier
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ืื ื™ ื“ื•ื•ืงื ื—ื•ืฉื‘ ืฉื”ืžื›ืฉื•ืœ ื”ื’ื“ื•ืœ ื™ื•ืชืจ
13:15
is the long-term nature of the benefits from early childhood programs.
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ื”ื•ื ื”ืื•ืคื™ ืœื˜ื•ื•ื— ืืจื•ืš ืฉืœ ื”ื”ื˜ื‘ื•ืช ืžื”ืชื•ื›ื ื™ื•ืช ืœื’ื™ืœ ื”ืจืš.
13:19
So the argument I'm making is, is that we're increasing
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ืื– ืžื” ืฉืื ื™ ื˜ื•ืขืŸ ื”ื•ื, ืฉืื ื—ื ื• ืžื’ื“ื™ืœื™ื
13:22
the quality of our local workforce,
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ืืช ืื™ื›ื•ืช ื›ื•ื— ื”ืขื‘ื•ื“ื” ื”ืžืงื•ืžื™ ืฉืœื ื•,
13:24
and thereby increasing economic development.
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ื•ื‘ื›ืš ืžื’ื‘ื™ืจื™ื ืืช ื”ื”ืชืคืชื—ื•ืช ื”ื›ืœื›ืœื™ืช.
13:27
Obviously if we have a preschool with four-year-olds,
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ืžื•ื‘ืŸ ืžืืœื™ื• ืฉืื ื™ืฉ ืœื ื• ื’ืŸ ื™ืœื“ื™ื ืขื ื‘ื ื™ 4
13:30
we're not sending these kids out at age five
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ืื ื• ืœื ืฉื•ืœื—ื™ื ืืช ื”ื™ืœื“ื™ื ื”ืืœื” ื‘ื’ื™ืœ 5
13:32
to work in the sweatshops, right? At least I hope not.
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ืœืขื‘ื•ื“ ื‘ืžืงื•ืžื•ืช ืกื“ื ืื•ืช ื™ื–ืข, ื ื›ื•ืŸ? ืœืคื—ื•ืช ืื ื™ ืžืงื•ื•ื” ืฉืœื.
13:36
So we're talking about an investment
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ืื– ืื ื• ืžื“ื‘ืจื™ื ืขืœ ื”ืฉืงืขื”
ืฉื‘ืžื•ื ื—ื™ื ืฉืœ ื”ืฉืคืขื” ืขืœ ื›ืœื›ืœืช ื”ืžื“ื™ื ื”
13:39
that in terms of impacts on the state economy
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13:42
is not going to really pay off for 15 or 20 years,
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ืœื ื”ื•ืœื›ืช ื‘ืืžืช ืœื”ื ื™ื‘ ืจื•ื•ื—ื™ื ื‘ืžืฉืš 15 ืื• 20 ืฉื ื™ื,
13:46
and of course America is notorious for being
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ื•ื›ืžื•ื‘ืŸ ืืžืจื™ืงื” ื™ื“ื•ืขื” ืœืฉืžืฆื” ื‘ืฉืœ
ื”ื™ื•ืชื” ื—ื‘ืจื” ืžื•ื›ื•ื•ื ืช ืœื˜ื•ื•ื— ืงืฆืจ.
13:49
a short term-oriented society.
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13:52
Now one response you can make to this,
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ืขื›ืฉื™ื•, ืชื’ื•ื‘ื” ืื—ืช ืฉื‘ื™ื›ื•ืœืชื›ื ืœื”ื’ื™ื‘ ืœื–ื”,
13:53
and I sometimes have done this in talks,
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ื•ืื ื™ ืœืคืขืžื™ื ืขืฉื™ืชื™ ื–ืืช ื‘ืฉื™ื—ื•ืช,
13:55
is people can talk about, there are benefits for these programs
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ื”ื™ื ืฉืื ืฉื™ื ื™ื›ื•ืœื™ื ืœื“ื‘ืจ ืขืœื™ื”, ื™ืฉื ื ื™ืชืจื•ื ื•ืช ืขื‘ื•ืจ ืชื•ื›ื ื™ื•ืช ืืœื”
13:58
in reducing special ed and remedial education costs,
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ื‘ื”ืคื—ืชืช ื—ื™ื ื•ืš ืžื™ื•ื—ื“ ื•ืขืœื•ื™ื•ืช ื—ื™ื ื•ืš ืžืชืงืŸ,
ื™ืฉื ื ื™ืชืจื•ื ื•ืช, ืžืชื™ื™ื—ืกื™ื ื‘ืชืฉื•ืžืช ืœื‘ ืœื’ืŸ,
14:02
there are benefits, parents care about preschool,
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14:04
maybe we'll get some migration effects
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ืื•ืœื™ ื ืงื‘ืœ ื›ืžื” ืชื•ืคืขื•ืช ื”ื’ื™ืจื”
14:06
from parents seeking good preschool,
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ืžื”ื•ืจื™ื ืฉืžื—ืคืฉื™ื ื’ืŸ ื™ืœื“ื™ื ื˜ื•ื‘,
14:08
and I think those are true,
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ื•ืื ื™ ื—ื•ืฉื‘ ืฉืืœื” ื ื›ื•ื ื™ื,
14:10
but in some sense they're missing the point.
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ืื‘ืœ ื‘ืžื•ื‘ืŸ ืžืกื•ื™ื ื”ื ืžืคืกืคืกื™ื ืืช ื”ื ืงื•ื“ื”.
14:12
Ultimately, this is something
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ื‘ืกื•ืคื• ืฉืœ ื“ื‘ืจ, ื–ื” ื“ื‘ืจ
14:15
we're investing in now for the future.
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ืฉืื ื• ืžืฉืงื™ืขื™ื ืขื›ืฉื™ื• ืœืขืชื™ื“.
14:19
And so what I want to leave you with is
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ืื– ืžื” ืฉืื ื™ ืจื•ืฆื” ื–ื” ืœื”ืฉืื™ืจ ืืชื›ื
ืขื ืžื” ืฉืœื“ืขืชื™ ื”ื™ื ื”ืฉืืœื” ื”ืื•ืœื˜ื™ืžื˜ื™ื‘ื™ืช
14:23
what I think is the ultimate question.
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14:25
I mean, I'm an economist, but this is ultimately
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ืื ื™ ืžืชื›ื•ื•ืŸ, ืื ื™ ื›ืœื›ืœืŸ, ืื‘ืœ ืžื“ื•ื‘ืจ ื‘ืกื•ืคื• ืฉืœ ื“ื‘ืจ
14:28
not an economic question, it's a moral question:
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ืœื ืฉืืœื” ื›ืœื›ืœื™ืช, ื–ื• ืฉืืœื” ืžื•ืกืจื™ืช:
14:33
Are we willing, as Americans,
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ื”ืื ืื ื• ืžืกื›ื™ืžื™ื, ื›ืืžืจื™ืงืื™ื,
ื”ืื ืื ื• ื›ื—ื‘ืจื” ืžืกื•ื’ืœื™ื ืขื“ื™ื™ืŸ
14:38
are we as a society still capable
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14:41
of making the political choice to sacrifice now
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ืœืขืฉื•ืช ืืช ื”ื‘ื—ื™ืจื” ื”ืคื•ืœื™ื˜ื™ืช ืœื”ืงืจื™ื‘ ืขื›ืฉื™ื•
14:46
by paying more taxes
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ืขืœ-ื™ื“ื™ ื›ืš ืฉื ืฉืœื ื™ื•ืชืจ ืžืกื™ื
14:48
in order to improve the long-term future
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ื‘ืžื˜ืจื” ืœืฉืคืจ ืืช ื”ืขืชื™ื“ ื”ืจื—ื•ืง
14:54
of not only our kids, but our community?
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ืœื ืจืง ืฉืœ ื™ืœื“ื™ื ื•, ืืœื ืฉืœ ื”ืงื”ื™ืœื” ืฉืœื ื•?.
14:57
Are we still capable of that as a country?
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ื”ืื ืื ื—ื ื• ืขื“ื™ื™ืŸ ืžืกื•ื’ืœื™ื ืœื–ื” ื›ืžื“ื™ื ื”?
15:02
And that's something that each and every citizen
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ื•ื–ื” ืžืฉื”ื• ืฉื›ืœ ืื–ืจื— ื•ืื–ืจื—
15:04
and voter needs to ask themselves.
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ื•ืžืฆื‘ื™ืข ืฆืจื™ื›ื™ื ืœืฉืื•ืœ ืืช ืขืฆืžื.
15:07
Is that something that you are still invested in,
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ื”ืื ื–ื” ืžืฉื”ื• ืฉืืชื ืขื“ื™ื™ืŸ ืžื•ืฉืงืขื™ื ื‘ื•,
15:09
that you still believe in the notion of investment?
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ืฉืืชื ืขื“ื™ื™ืŸ ืžืืžื™ื ื™ื ื‘ืจืขื™ื•ืŸ ืฉืœ ื”ืฉืงืขื”?
15:12
That is the notion of investment.
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ื–ื” ื”ืจืขื™ื•ืŸ ืฉืœ ื”ืฉืงืขื”.
15:14
You sacrifice now for a return later.
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ืœื”ืงืจื™ื‘ ืขื›ืฉื™ื• ื›ื“ื™ ืœืงื‘ืœ ื—ื–ืจื” ืžืื•ื—ืจ ื™ื•ืชืจ.
15:16
So I think the research evidence
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ืื– ืื ื™ ื—ื•ืฉื‘ ืฉืจืื™ื•ืช ื”ืžื—ืงืจ
ื‘ื“ื‘ืจ ื”ื™ืชืจื•ื ื•ืช ืฉืœ ื”ืชื•ื›ื ื™ื•ืช ืœื’ื™ืœ ื”ืจืš
15:20
on the benefits of early childhood programs
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15:22
for the local economy is extremely strong.
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ืขื‘ื•ืจ ื”ื›ืœื›ืœื” ื”ืžืงื•ืžื™ืช ื”ืŸ ื—ื–ืงื•ืช ืžืื•ื“.
15:26
However, the moral and political choice
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ืขื ื–ืืช, ื”ื‘ื—ื™ืจื” ื”ืžื•ืกืจื™ืช ื•ื”ืคื•ืœื™ื˜ื™ืช
15:30
is still up to us, as citizens and as voters.
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ื”ื™ื ืขื“ื™ื™ืŸ ืฉืœื ื•, ื›ืื–ืจื—ื™ื ื•ื›ื‘ื•ื—ืจื™ื.
15:35
Thank you very much. (Applause)
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ืชื•ื“ื” ืจื‘ื”. (ืžื—ื™ืื•ืช ื›ืคื™ื™ื)
ืขืœ ืืชืจ ื–ื”

ืืชืจ ื–ื” ื™ืฆื™ื’ ื‘ืคื ื™ื›ื ืกืจื˜ื•ื ื™ YouTube ื”ืžื•ืขื™ืœื™ื ืœืœื™ืžื•ื“ ืื ื’ืœื™ืช. ืชื•ื›ืœื• ืœืจืื•ืช ืฉื™ืขื•ืจื™ ืื ื’ืœื™ืช ื”ืžื•ืขื‘ืจื™ื ืขืœ ื™ื“ื™ ืžื•ืจื™ื ืžื”ืฉื•ืจื” ื”ืจืืฉื•ื ื” ืžืจื—ื‘ื™ ื”ืขื•ืœื. ืœื—ืฅ ืคืขืžื™ื™ื ืขืœ ื”ื›ืชื•ื‘ื™ื•ืช ื‘ืื ื’ืœื™ืช ื”ืžื•ืฆื’ื•ืช ื‘ื›ืœ ื“ืฃ ื•ื™ื“ืื• ื›ื“ื™ ืœื”ืคืขื™ืœ ืืช ื”ืกืจื˜ื•ืŸ ืžืฉื. ื”ื›ืชื•ื‘ื™ื•ืช ื’ื•ืœืœื•ืช ื‘ืกื ื›ืจื•ืŸ ืขื ื”ืคืขืœืช ื”ื•ื•ื™ื“ืื•. ืื ื™ืฉ ืœืš ื”ืขืจื•ืช ืื• ื‘ืงืฉื•ืช, ืื ื ืฆื•ืจ ืื™ืชื ื• ืงืฉืจ ื‘ืืžืฆืขื•ืช ื˜ื•ืคืก ื™ืฆื™ืจืช ืงืฉืจ ื–ื”.

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