“Even as the labor market has gotten steadily healthier in recent years, the American birth rate continues to fall from its recession-era highs.
Women tell pollsters that’s not because the number of kids they’d ideally like to have has fallen. Instead, the No. 1 most-cited reason is the high cost of child care. Child care doesn’t get more affordable just because the unemployment rate is low. If anything, it’s the opposite — child care is extremely labor-intensive, and the prospects for introducing labor-saving technology into the mix look bad. To make child care broadly affordable would require government action; it’s just not going to happen in a free market, which doesn’t magically allocate extra income to people who have young kids.”
“America’s sky-high child poverty rate compared with peer countries is entirely attributable to our failure to enact a child allowance policy. A better labor market helps marginally, but it doesn’t address the fundamental issue that a new baby increases financial needs while also making it harder to work long hours.”