As the rate of population growth in developed or developing countries decreases, governments interested in managing their financial risk for social programs quite often offer one short-sighted solution: financial stimuli for making more children. The idea is to increase the future tax base and cover the costs of running a country’s social programs. It’s what just happened in Romania earlier this year, as the monthly allocation for each child was increased. This is the wrong approach.
Contrary to unfortunately popular beliefs and populist politicians, a nation’s decreasing population is a good thing. It’s an educated, informed, working population’s natural response to overpopulation, to the state of the world and the world’s resources, and its preference for quality over quantity. They prefer to have less children, often just one, and to ensure that that child gets the best education and upbringing that each family’s money can buy. Gone are the days when a family would have several children, knowing that a few would be lost during childhood and also knowing the ones who’d reach teenhood and adulthood would be good help on the homestead. Also gone are the days when a country’s population growth was seen as a nationally strategic decision and encouraged against reason and odds.
Still, financial stimuly for child-rearing are a popular topic with voters. What are a country’s leaders to do as they try to shift their country’s focus from quantity to quality, on all levels of life? Here’s a thought: do what the educated parents do. Lavish proper financial stimuli on a family’s first child. I would increase the amount of aid offered by the government by quite a bit, but only for the first child. After that first child, the aid would stop. Each family should be completely on its own if they want to have additional children.
This could be taken one step further in order to fully address a country’s population growth: governments could institute a higher income tax on those families who choose to have more than one child. Whatever name gets attached to it, in those countries where population growth must be curbed, there should be a tax — perhaps even a tax that grows exponentially — for each additional child.
In a world that is well past the mark of overpopulation, each family that chooses to have additional children should ensure they have the proper resources to take care of them instead of being a burden on society. The making of children purely for the purpose of obtaining financial aid from the government (which is a thing in Romania among certain people) would no longer be a problem. The problem of uncontrolled population growth would be fully addressed.