The Economization of Early Life: Human Capital Theory, Biology, and Social Policy

Abstract

The US government response to the coronavirus pandemic has prompted renewed debate about the size and structure of the welfare state. Particular attention has been paid to prenatal and early childhood policy, domains in which the US safety net is less robust than those of its peer countries. Contra claims that the so-called care economy constitutes a sharp break with the neoliberal consensus, this article argues that the shift in social policy focus toward early life is consistent with changes in economic ideas about the best environment in which to grow “human capital”: the economization of early life. Building on insights about “critical periods” of development drawn from diverse fields including epigenetics and neurobiology, economists estimate that human capital gains are greatest when “investments in people” occur before the age of five. This article traces the history of how this research was brought to the attention of federal policy makers in the United States. While much human capital–focused social policy traditionally placed the burden of risk on the private family (e.g., with student loan debt or health insurance), in recent years, economists have instead argued that social programs dedicated to early childhood development are more “efficient” sources of public investment.