DC Child Care Policy: Restrict Supply, Then Subsidize It
Last week, I highlighted how the DC authorities will be “among [the] first in [the] nation to require child-care workers to get college degrees.” Basic economics tells us this will restrict the supply of potential careers, raise prices, and, I fear, over time lead to a demand for more subsidies to “make child care more affordable.”
There was another possibility I did not explore. Today’s Washington Post suggests that subsidizing supply is on the agenda instead:
Mayor Muriel E. Bowser (D) has offered a $15 million proposal to address the acute shortage of licensed child-care options for the city’s infants and toddlers, an issue that has gained urgency amid a baby boom. Her 2018 budget includes competitive grants to help high-quality providers expand or open centers and would also make space available for child-care facilities in three city-owned or leased buildings.
A basic principle that policymakers should follow is “first do no harm.” DC has a general affordability and availability problem, which is screaming “restricted supply.” But now the DC authorities are having to subsidize supply in part to overcome the reductions in supply caused by their own policies. Watch for calls for more demand-side support next.
The result? More and more government control over this crucial economic, social, and familial aspect of life.
Source: https://www.cato.org/blog/dc-child-care-policy-restrict-supply-then-subsidize-it
