A new report from the Hamilton Project spells out the implications of the decline in the number of teaching positions:

 “In 2011 there were over 220,000 fewer teachers in America’s classrooms than in 2009, a reduction accounting for nearly forty percent of the decrease in public-sector jobs during this period. This decline in the number of teachers increased the student-teacher ratio by 5.9 percent.
“To determine the consequences of these reductions, we assumed that class-size increases were applied equally across all grades in K-12 schools. We then drew from recent research that links future earnings with class size to assess the wage impacts for today’s children, when they become working-age adults. All of this is explained in more detail here, but the bottom line is that this research suggests that the Great Recession will live on for decades through the lower future wages for our children.

 “Of course, an important test for the efficiency of government spending is whether the benefits exceed the costs. The savings from these cuts, in terms of teacher salaries and benefits, are $11.8 billion per year nationwide. While a significant figure, it is substantially smaller than the estimated present value in foregone earnings of $49.3 billion dollars for the children, whose education is affected by larger class sizes. To put a fine point on these findings, this translates into a per-student, per-year loss of nearly $1,000 in future earnings. In summary, the foregone benefits are more than four times larger than the current budget savings!”

Read more of this report from the Hamilton Project.