The childcare shortage is not a mystery

Source: American Institute for Economic Research
by Jeffrey A Tucker

“Prepare yourself for the push of another national crisis that can only be solved by a gigantic new government program. What is it this time? According to Katha Pollitt, it is the desperate need for Day Care for All. Her piece contains vast amounts of compelling documentation of the problem. You have demand. You have supply. But there is a shortage of the latter in the market. Hence, crazy prices. … What she nowhere considers is why the market seems to be failing. And this accounts for her conclusion: we need ‘government-funded child care.’ And not just any childcare but ‘high quality’ childcare. That phrase alone is evidence of her intellectual oversight. Who is to determine what constitutes high quality? Not the consumer. Under current regulatory conditions, that is government: federal, state, and local. … this industry does not exist in a competitive environment. It’s a cartel. Only the big providers can leap over the high regulatory hurdles.” (02/10/19)

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