Arguments for State Child-rearing Grants

It goes without saying that the arrival of a new child is an economic burden for a family; in many cases it has been observed that children can push a family below the poverty line. As a result there are many ideas of how the unfortunate link between large families and poverty can be broken. One suggested remedy is a state child-rearing grant. The study presented here by Prof. Hans Heinrich Nachtkamp, University of Mannheim, takes a completely different approach, without ignoring the necessity to redistribute income or wealth to families with children if they are sufficiently poor. The author argues that first the parents should receive an appropriate grant from the state for the services they provide for society as a whole by raising children. Only then should one look at the remaining redistribution needs for the families. Part of the parents' performance is conveying to their children an attitude towards people and society that is essential for the body politic but that cannot be required, neither by the constitution nor by laws. Parents' contributions in an open society is raising children who appreciate the richness of the various forms of human existence. Parents also add to the store of productive factors that will ensure the future provision of society. They create the human capital of the future. But unlike the accumulation of real capital, the fruits of human capital are socialized.