In The Critic, Niall Gooch stands up for family life despite the regular hand-wringing articles pointing out just how “expensive” children are and how much money women forego in the working world to take time off and have a family, as if no other economic decisions in life have opportunity costs attached:
Every so often, a publication called something like Bosses Quarterly or Money Patrol will report a new study investigating the financial costs of having children. “Average child now costs £200,000”, they breathlessly inform us, or perhaps “Women Who Become Mothers Lose £400,000 In Earnings Over Their Lifetime”.
I have no idea how they generate these figures. Presumably they have at least some basis in proper empirical research. It doesn’t seem inherently implausible that middle-class parents in Britain spend well into six figures on their children one way and another, when you factor in childcare, holidays, clothes, food, transportation, birthday parties and university attendance. Raising children is undoubtedly costly, from a financial perspective, even if you are frugal. If my wife and I did not have children, our lifestyle would be considerably more affluent than it is at present. The “motherhood penalty” in lifetime wages does seem to be a real phenomenon – although it is one that many women are willing to accept.
But the accuracy or otherwise of the calculations is beside the point. There is something profoundly wrong-headed about the whole endeavour of trying to evaluate the good of family life in economic terms, or to treat the raising of children as simply one option among many in the great lifestyle marketplace. And yet many people persist with doing so. Sam Freedman, the policy analyst and writer, claimed on Twitter earlier this week, in defence of expanding subsidies for nurseries, that “it’s a lot cheaper for one person to look after several children than each parent to look after their own and not work”. This person noted “the long term impact on (nearly always) women’s career prospects which has a big effect on GDP”. He also argued against replacing subsidies to nurseries with direct payments to parents, noting that “giving money direct to parents would encourage people to leave the workforce when we need the opposite to happen”.
Even on its own terms, this is dubious. Low birth rates are a significant drag on economic growth, and making it harder for women to spend more time at home with their children is hardly conducive to increasing the birth rate. Besides which, there are big socio-economic problems connected to the modern norm of two parents working more or less full-time — house-price inflation for example, or the decline of communal organisations and lack of time for family caring responsibilities.
