Why Republicans Need a Childcare Proposal of Their Own

“Child care costs exceed those of a mortgage or college in many states. Access to affordable child care is one of the biggest barriers to women’s work, and there’s increasing evidence that the cost of raising children is a barrier to having more kids as well, according to a New York Timessurvey. Low quality early childhood care situations have lifetime ramifications for children, including worsened health and economic trajectories and an increased likelihood of needing future government assistance.”

“The evidence of improved outcomes for children from universal preschool and universal child care is mixed at best. The preponderance of evidence shows the largest gains for at-risk kids and unclear results for everyone else, and state-based programs haven’t been around long enough to suss out long-term effects.

Moreover, providing generous subsidies to nearly all American families, irrespective of need, will make child care more expensive by increasing demand, which will necessitate larger subsidies over time. This is a recipe for spiraling costs; look no further than our experiments in health care or college to see how quickly costs inflate when the government makes something “affordable.” Exacerbating these dynamics, the administration’s proposal will also constrain child care supply by mandating higher wages and skill levels from providers who already have thin margins as well aspotentially limiting religious providers. Faith leaders across religions (Catholic, Muslim, Christian and Jewish) have expressed concern that their ability to continue to provide care will be negatively impacted by BBB.Those providers make up a huge portion of child care providers: A Bipartisan Policy Center poll from last year found that 31 percent of working-parent households used center-based care, and over half, or 53 percent, of these families used one that was affiliated with a faith organization.

To be sure, most parents will be shielded from the effects of rising costs because of the generous subsidies they are receiving, making the policy seem like a win-win on the surface, though they might be affected by the reduced choice providers. But nothing is free. Taxes on the rich and corporations can only go so far, and at some point that money will also need to go toward the historic debt we’ve accumulated. Estimates from the Committee for a Responsible Federal Budget and Moody’s suggest that the BBB child care provisions alone will cost nearly $1 trillion over 10 years once fully implemented, far exceeding the money to be provided by the tax increases that Democrats have proposed to fund the legislation. The people likely to pay for BBB and the runaway spending in Washington are the very children whom such policies are supposed to benefit.

Policymakers can do better. Republicans should up the ante on what Democrats have proposed with an alternative child care proposal — one that is more targeted, sustainable and also more transformative — by providing greater support and choice to parents.”
https://www.politico.com/news/magazine/2021/12/09/republicans-should-one-up-dems-with-a-better-child-care-proposal-heres-how-523971

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