Why cash beats government-funded childcare
, the sociologist and senator who died in 2003, once said that America’s longstanding preference for bureaucratic social services for the poor over simply handing them cash was like “feeding the sparrows by feeding the horses”. The universal child-care plan offered by Elizabeth Warren, a senator from Massachusetts and Democratic candidate for 2020, falls into such a snare. Given the cost of American child care, which is the least affordable among developed countries, some plan is clearly needed.
In practice, the universal child care envisioned by Ms Warren would operate as more of a middle-class entitlement than a well-targeted anti-poverty programme. The costs of child care vary enormously by place. In Washington,, it costs around $22,000 a year. Assuming identical costs, Ms Warren’s plan would grant a well-to-do professional couple in the city making $150,000 an $11,500 subsidy to deposit Junior in day care.
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