Tuesday, October 17, 2017

Childcare in America: Challenges and Solutions

I recently read this article which covered the history of childcare in America and government involvement in childcare from World War 2 to present day. Although I did not fact check the article, it lines up with much of what I know about the history of working women in our country and the challenges they have faced in balancing childcare with career.

As I have written about already this year regarding maternity leave, I do not believe women can have it all. It is simply impossible to have a career and be the best mom you want to be. Each week working women spend 40 hours on the job, 3-5 hours on lunch breaks, and more hours on commute time, leaving just a few hours at the beginning and end of the day to get everyone ready and to wind down.

The article I read discusses how devastating childcare costs can be, especially for single moms or lower income families. The cost is so prohibitive that mothers especially of two or more children often cannot go to work because of inconsistent and unaffordable care.

The author suggests that it is time for the government to step in like it did during World War 2 by offering subsidized childcare. The author wants workers to be paid more and for the government to make more facilities available. Yet the author wants parents to pay much less.

While this is a fantastic idea, it makes me wonder what would happen if those wishes were implemented. If childcare options are already poor, imagine how bad it might be if the government were to run it. Every government "service" I participate in is typically a hellish experience. Think about waiting in line at the DMV or filing taxes. Think about our K-12 public school system (which most people would agree needs an overhaul). The government lowers incentives for efficiency and quality. When the government pays for, subsidizes, or completely takes over an industry, the standards typically lower and the costs go up.

The other issue with government subsidized childcare (or government subsidized anything) is that someone will be paying for the subsidized childcare. The money will come from one of three places:
  1. Higher taxes (which typically trickles down and hurts the people it was supposed to help)
  2. Debt (which will have to be paid by future generations)
  3. Inflation (which is basically a tax on everyone as it raises the cost of goods)

When I got pregnant with my daughter, I made $15/hour. But I was a contractor and had to pay all my own taxes so it was really more like $12/hour. But, my hours were not consistent and I worked a lot of night shifts. So I left that position for one that only paid $10/hour but had consistent, daytime hours and commission opportunity. So, I typically made between $400-$550/week. On a bad week where I did not commission, my paycheck would be less than $400 because of taxes. This job offered no sick days or paid time off so if I did not work my full 40 hours, I was out of luck. I called in sick one day (I had a cold) the whole six months I worked there and took on overtime when it was available since I was trying to pay for my midwife and save for an unpaid maternity leave.

Thankfully, once I gave birth to my daughter, I got another job which paid significantly better plus offered vacation, sick days, and reasonably priced benefits. In addition, my parents and little sister have flexible enough schedules and big enough hearts that they were willing to watch my child.

If I had not gotten a better paying job or if I had not had childcare through my family, I do not think I would have returned to work as more than half of my smaller paychecks would have gone to childcare expenses. Not to mention, I know that the quality of childcare can be spotty and I do not easily trust people around my child. I am not sure what I would have done to bring in income for my family, but it would have had to have been something I could do at home while caring for a child.

I can only imagine how difficult this situation is for many women who do not have a spouse, do not have family support, and do not have a decent salary.

Like with the dilemma of maternity leave, I do not have an easy answer to this challenge. I think the best thing the government could do for moms, however, is to get out of the way. If income taxes were actually lower, women would have more of their paycheck to go toward childcare. In addition, the government has many regulations on childcare facilities which cost them time and money to comply with. While the regulations and standards were implemented to keep kids safe, they raise the cost of care. I would recommend the government lift the regulations and allow parents to make the best decision they can regarding their child's care. With online reviews, childcare centers which do not offer quality care will soon run out of customers. They will be forced to self-regulate in order to keep their customers. By creating barriers to entry through regulations, though, the government may be keeping potential daycare centers from ever getting started in the industry because they cannot afford to get through all the red tape. Less competition means higher prices for parents.

Like many issues facing our society, there is no one size solution or easy answer. My personal belief is that the more freedom people have to open up businesses (like childcare facilities) and the more money that is in the hands of the parents (through lower taxes), the more choices parents will have to get quality care for their child at a price that they can afford.

For my family, I can only express how thankful I am that my parents are in a position to watch my child which puts me at much greater ease while at work and in a better position financially (compared to other moms who pay for expensive care).

What solutions can you think of?