Is Governement Childcare Really a Good for the Economy?

[muchacho_007]

http://www.parentcentral.ca/parent/articlePrint/1012855

I read this article and to summarize, it says that for every dollar spent on childcare you get:
+ $1.05 provincially
+ $0.44 federally

The reason claimed is that the investment is recuperated through the annual income tax and consumption taxes that are collected by putting people back into the workforce instead of staying at home taking care of children.

If this is true, it sounds like very persuasive reason to consider early childhood education.

[flyinggonzo]

Yes, absolutely, particularly given the cost of quality child care in the city.

We have two kids and are debating whether it makes economic sense for my SO to continue working or to stay at home - ie, whether the incremental $xxx k of after-tax income is worth the additional stress of going to work... reducing the cost of childcare would certainly help swing the decision for us.

[Syne]

Doesn't the high cost of child care actually reduce the unemployment rate, as those parents who tactically quit to stay home with their offspring would not technically fall under what we consider "unemployed"?

That's to say, they are not actively seeking employment.

So holes are filled by workers who would have otherwise not worked, or worked part-time for lack of full-time employment.

[r1lee]

Yes, absolutely, particularly given the cost of quality child care in the city.

We have two kids and are debating whether it makes economic sense for my SO to continue working or to stay at home - ie, whether the incremental $xxx k of after-tax income is worth the additional stress of going to work... reducing the cost of childcare would certainly help swing the decision for us.

That's interesting, my wife and I find it less stressful to be at work than at home taking care of our daughter and soon to be second. Don't get me wrong, I enjoy the time with her, but everyday with her would be very difficult by myself.

[muchacho_007]

Doesn't the high cost of child care actually reduce the unemployment rate, as those parents who tactically quit to stay home with their offspring would not technically fall under what we consider "unemployed"?

That's to say, they are not actively seeking employment.

So holes are filled by workers who would have otherwise not worked, or worked part-time for lack of full-time employment.

Can you point to any study that confirms your claim? I'm not trying to be cheeky, I'm really interested in this topic.

[Syne]

I don't think it's really a point of interest for study.

I'm just using common sense. More people staying home with kids, means more work is freed up for other people to do.

[ferkel]

how come Quebec has good child care, and why is the rest of Canada paying for it.

[muchacho_007]

I don't think it's really a point of interest for study.

I'm just using common sense. More people staying home with kids, means more work is freed up for other people to do.Common sense would also say that you are cutting the family's income in half and you are probably artificially reducing the unemployment rate. I think the economy would be better if everyone was working, it's also common sense.

[Syne]

Common sense would also say that you are cutting the family's income in half and you are probably artificially reducing the unemployment rate. I think the economy would be better if everyone was working, it's also common sense.

Except infinite growth capitalism is clearly unsustainable, so we need to ration work, but still reward the same amount of money, if not more, to compensate for population growth.

[zeddy]

It isn't good for my economy! I am closing my home Childcare after 12 years because of government supported programs. A year maternity leave and full day, everyday kindergarten greatly reduces the number of long term clients. When I started mat leave was 6 months. I had some clients from the time they were 5 months until they entered Grade 1. As of yesterday I am unemployed but I don't show up on any stats.

[muchacho_007]

It isn't good for my economy! I am closing my home Childcare after 12 years because of government supported programs. A year maternity leave and full day, everyday kindergarten greatly reduces the number of long term clients. When I started mat leave was 6 months. I had some clients from the time they were 5 months until they entered Grade 1. As of yesterday I am unemployed but I don't show up on any stats.

Where you providing fully insured/certified childcare? Which government programs specifically killed your business?