The Hidden Cost of Illiteracy: How Low Reading Levels Impact the Economy and Society

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The Hidden Cost of Illiteracy: How Low Reading Levels Impact the Economy and Society

In today’s fast-paced world, information is simplified, formats are geared towards quick consumption and click-bait headlines, and the ability to read, compare, and comprehend complex texts has become more vital than ever. According to the United States Department of Education, 54% of adults read below a 6th-grade level. The full cost of illiteracy is difficult to quantify, but this statistic indicates a significant challenge for individuals and society, impacting everything from employment opportunities to civic engagement.

54% of adults read below a 6th-grade level. US Illiteracy Rate.

Consider the implications of low literacy on our economy. A study by Gallup and the Barbara Bush Foundation for Family Literacy in 2020 projected that the United States could lose up to $2.2 trillion annually due to low adult literacy rates. This loss equates to a potential 10% increase in our gross domestic product (GDP). The impact of literacy on personal income is also striking. Adults reading at a sixth-grade level earn an average of $63,000 per year, compared to $48,000 for those reading at a third to fifth-grade level and a meager $34,000 for those reading at the lowest levels. This correlation underscores the importance of literacy not just for individual success but for the health of our society.

Adult literacy rates are directly connected to a person’s literacy development at every step. Most importantly, the transition from “learning how to read to reading to learn” happens roughly in the third grade.

As we navigate this landscape, it is worth exploring the findings of a recent article in The Atlantic by Rose Horowitz, highlighting a troubling trend: “Many students no longer arrive at college—even at highly selective, elite colleges—prepared to read books.” This foundational issue affects academic performance and the capacity to engage as informed citizens.

To exemplify the challenges of reading comprehension, I conducted an experiment in mid-November, asking an AI tool to rewrite a passage from a Wall Street Journal article at a fifth-grade reading level.

From the WSJ “How Science Lost America’s Trust and Surrendered Health Policy to Skeptics” November 19, 2024

Rewritten at a fifth-grade level:

Joel Grey, a 62-year-old retired car salesman from Belfair, Washington, found pandemic restrictions tough. He voted for Trump and only got vaccinated because his diabetes put him at a higher risk of getting very sick from Covid-19. He said he saw people he knew lose their jobs because they wouldn’t get the vaccine, and he partly blamed his mom’s death at age 87 on how lonely she felt during lockdowns.

Joel grew upset with scientists telling people how to live. He said, “I just don’t think they should have a say in our lives.” Many others felt the same way.

By October 2023, a Pew Research Center poll found that 27% of Americans didn’t trust scientists much or at all to make decisions for the public’s good. This was a big jump from 13% in 2019.

The differences may appear subtle, but when aggregated over an entire article across many news sources, you can see how difficult it would be to grasp the nuance, jargon, and complexities of these important topics. Individuals who struggle with understanding complex ideas may turn away from reading altogether, opting for more digestible formats like podcasts or videos. This cycle of disengagement can foster apathy towards important societal issues, further polarizing communities and diminishing the foundation of active citizenship.

At WITS, our mission is to develop foundational literacy skills and to create opportunities for every student in Chicago to be literate. We create community through literacy-based mentorship, enabling teachers to build diverse classroom libraries and promoting book ownership at home.

Just as no one wakes up one day as an adult and not know how to read, we do not wake up one day as a child and suddenly know how to read.

Our young learners in Chicago need guidance, patience, context-building experiences, and access to quality reading materials. Nurturing a generation of informed readers equipped to participate in civic life takes dedication and collective effort. Your investment in WITS builds a world with nuance, curiosity, empathy, and compassion by ensuring more young people are readers who have the capacity to engage as informed citizens—because every informed citizen plays a vital role in our democratic process. Being literate is not just important—it is essential for individual success and the very foundation of a thriving society. Make a donation and create opportunities for every student in Chicago to be literate.