Story Brunch
The Economics of Intellectual Heritage
A few years ago, the notion of formally monetizing or determining the economic value of biodiversity and the environment was largely unexplored. However, this changed with the advent of The Economics of Environment and Biodiversity (TEEB). This innovative initiative quantifies and highlights the economic losses incurred annually due to environmental degradation factors such as deforestation, air and water pollution, and other environmental hazards. While the concept of TEEB has gained formal recognition only in recent years, the underlying principle of attributing economic value to natural resources has been a latent aspect of human history. In a world governed by economic principles, every entity, including our natural environment, holds an intrinsic economic value. This concept’s relevance in contemporary discourse is critical, because it helps us to see those things from a monetary perspective which we generally consider for granted. We will similarly see another crucial function in our lives- child upbringing/ parenting, from economic lens.
Let us clarify the fundamental motivation behind our diligent work, professional endeavors, and the pursuit of greater wealth —
it centers on nurturing and preparing the most capable offspring for the future.
Indeed, other motivations exist, such as personal enjoyment, lifestyle maintenance, and global exploration. However, when resources are limited, childcare often becomes the priority. This is particularly pertinent for women in middle and lower income groups, who frequently face the challenging decision of choosing between full-time childcare and their careers.
In the relentless quest for financial success, many couples overlook the economic significance of full-time childcare. Intellectual heritage, akin to material wealth, is passed from one generation to the next, especially during the critical years of infancy which significantly shape a child’s future.
Take, for instance, the legendary figure Abhimanyu from the Mahabharata. He acquired the skill to penetrate the Chakravyuh while in his mother’s womb, an allegory emphasizing the profound impact of early learning.
Opting out of work, whether by choice or circumstance, presents an opportunity to significantly influence a child’s development. The time dedicated to childcare should be considered a vital investment in the future, aiming to cultivate a well-rounded, intelligent, and capable progeny.
Is there any investment more worthwhile for the future than this?
Developmental psychology emphasizes the critical role of early childhood experiences in shaping cognitive and emotional development. Renowned psychologist Jean Piaget’s theory of cognitive development, for instance, highlights how early experiences are crucial in forming the building blocks of intelligence, moral understanding, and problem-solving skills.
In addition, the concept of ‘human capital’ in economics, which views education and health as investments in the productive capacity of individuals, can be applied to this context. Investing in a child’s early development is akin to investing in human capital, yielding long-term benefits not just for the individual, but for society as a whole.
Furthermore, drawing parallels with historical figures known for their early development, like Wolfgang Amadeus Mozart, who began composing music at a very young age, can illustrate the potential impact of nurturing talent from infancy.
How much income can a working woman from the middle or lower class generate in a span of 2-5 years? The crucial question is whether this financial gain outweighs the long-term benefits of investing time and effort in a child’s early development.
Recent research consistently demonstrates a child’s capacity to acquire significant skills before reaching the age of 7. These formative years offer a golden opportunity to potentially nurture a future Gary Kasparov, Vishwanathan Anand, Pablo Picasso, or Satyajit Ray. The dedication to early childcare can yield exponential benefits for the child’s future.
Is it feasible to achieve this without opting for full-time childcare? Yes, it is possible. However, it’s important to note that full-time parenting provides a significant advantage in today’s highly competitive environment.
The formative years are ripe for imparting a wide array of values and virtues, tasks that nannies and maids might not effectively accomplish. This period is optimal for developing a child’s communication skills, storytelling abilities, and creative thinking. Psychological studies have consistently shown that experiences during childhood profoundly influence adult personality.
Parenting should be approached with the rigor of a science, not merely as an art where later adjustments can easily rectify earlier neglect.
While a child might inherit material wealth amounting to a few hundred thousand, the intellectual heritage acquired through thoughtful parenting in the early years can be worth millions.
The social and communication skills a child learns during this period can significantly accelerate their progress up the socio-economic ladder.
‘Opportunity cost’ principle suggests evaluating the potential benefits one foregoes when choosing one alternative over another. In this context, it means weighing the opportunity cost of a woman’s income against the potential long-term benefits of investing in her child’s early development.
Moreover, drawing on the concept of ‘return on investment’ (ROI) from finance, the investment in a child’s early years can be viewed as yielding substantial returns in terms of the child’s future capabilities and achievements.
For instance, Serena and Venus Williams’ tennis prowess was nurtured from a very young age by their parents, which played a crucial role in their eventual success.
Sacrifice or Not?
Many women who choose childcare over their professions perceive it as a substantial sacrifice. Indeed, it involves forgoing personal income and the independence that comes with it. However, this perspective captures only one facet of the decision.
How often is this choice recognized as an investment in human resources (HR)? Just as leading companies invest substantially in HR and training without expecting immediate profits, a similar long-term view can be applied to childcare.
For most women in middle and lower income brackets, the cost-benefit analysis of working versus non-working status during early years of parenting is surprisingly balanced.
When adding up the expenses of nannies, maids, tuition, playschool fees, and other miscellaneous costs, the total often rivals or even exceeds the monthly income of many working women. By dedicating themselves to full-time childcare, women can not only save on these expenses but also provide superior, personalized education and nurturing. The foundational skills imparted in playschools can be more effectively taught by an educated parent, who can also save on escalating playschool fees. Undoubtedly, no institution can replicate the unique nurturing that parents offer.
Overlooking a child’s fundamental nurturing needs during their formative years is, in essence, neglecting the economics of intellectual heritage.
Concept of ‘intangible assets’ from economics: The skills, values, and knowledge a parent imparts to a child are intangible assets that can have immeasurable future value.
Additionally, drawing parallels with investment strategies in finance, where long-term growth is often prioritized over short-term gains, can be useful. The decision to focus on childcare is akin to choosing investments with potential for significant future returns.
Educational theories, like those of Maria Montessori, which emphasize the importance of early childhood education tailored to each child’s unique needs and potential. This approach aligns with the idea that parents, understanding their child’s individuality, are best positioned to provide this personalized education.
Moreover, the example of highly successful individuals who were homeschooled or had significant parental involvement in their early education, like mathematician Blaise Pascal or polymath Leonardo da Vinci, illustrates the potential benefits of parental teaching and guidance.
