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Biden's relief plan calls for an utterly massive bailout of the child care sector, including straight-up reimbursing half of the cost of child care for anyone making less than 125k / year. 
Pre-Covid, 40% of kids under five relied on family & relatives for child care, and less than 25% were in a formal paid day care arrangement.
Post-Covid, the numbers have surely shifted even more in favor of informal providers, including churches & co-ops. https://www.niskanencenter.org/cash-superior-child-care/
Post-Covid, the numbers have surely shifted even more in favor of informal providers, including churches & co-ops. https://www.niskanencenter.org/cash-superior-child-care/
Formal child care is expensive due to supply constraints created by regulations, credentialing, and (in the highest cost areas) scarcity of land.
Child care credits thus tend to just passthrough into higher prices. Super-charging the credit is a bad idea.
https://www.sciencedirect.com/science/article/abs/pii/S0094119018300792
Child care credits thus tend to just passthrough into higher prices. Super-charging the credit is a bad idea.
https://www.sciencedirect.com/science/article/abs/pii/S0094119018300792
Formal child care costs the most in high-demand cities where wages are higher and real estate is expensive. Proposing to reimburse 50% of child care expenses thus represents a *much* bigger transfer to a highly educated Brooklynite couple than to (say) a single mom in Mississippi
If Biden really wants to expand access to child care, improve affordability, and increase resilience to shocks like Covid, he should embrace what I've called "Child Care Pluralism":
Child allowances on the demand side + Liberalize home day care providers.
https://ifstudies.org/blog/the-false-promise-of-universal-child-care
Child allowances on the demand side + Liberalize home day care providers.
https://ifstudies.org/blog/the-false-promise-of-universal-child-care
