Couples Cannot Afford to Have Kids

If we are richer than ever, how can the birth rate fall?

Let us do a little dialog tackling common criticisms of the idea that high cost cold play a role in reducing birth rates in the West.

Skeptic: “Economic cost as a reason for falling birth rates? Please. Poor families used to have six, eight, even nine kids! If they managed, today’s ‘richer-than-ever’ families have no excuse.”

Response: At first glance, it does seem contradictory. How can financial strain be a reason when today’s GDP per capita far surpasses that of our great-grandparents? But it’s important to understand how our modern economy has shifted costs, particularly for services that are crucial to raising a family.

Skeptic: “Come on, we’re just talking about producing and providing for kids. Surely, with all our wealth, that should be easier.”

More GDP, But Higher Costs for Key Services

What “richer” means today is that we produce more things: more clothes, more food, more electronic gadgets. But growth hasn’t been equal across all areas. We’ve gotten much better at producing things that can be automated in factories — phones, clothes, toys — but services like education, healthcare, and childcare rely on human labor and haven’t…