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Sunday, November 13, 2005

Conference In Fargo To Call For Tax Dollars For Daycares

Hmm...

A one-day conference is scheduled Wednesday at the Fargodome to discuss the role of child care in North Dakota’s economy. . . .

North Dakota, with 72 percent, has the highest percentage of children under age 6 with both parents in the labor force. The supply of licensed child care meets only 25 percent of potential demand.

“North Dakota needs to find ways to bridge the gap between what working parents can afford to pay for child care and what child-care programs need to operate,” said Linda Lembke, director of Lakes & Prairies Child Care Resource and Referral.


Bridge the gap on affordable child care? Sounds to me like a call for more tax dollars directed at daycares.

These people will no doubt be trying to raise alarms about "poor working families" who cannot afford to put their kids in daycare, but I wonder if it has ever dawned on these people that rising child care costs, much like rising tuition costs, are the fault of too much government money being made available?

When the government starts paying, even in part, for things like education and child care it creates havoc in what should be a free market. Daycare costs are high, yes, but daycares are, at the end of the day, businesses. They are not going to let themselves be priced out of the market. If their prices are too high and parents cannot pay the daycares will find a way to lower them lest they loose all their business. When the government makes money available prices do not go down. Rather, they go up because the average citizen's ability to pay has been artificially inflated meaning that the daycares can now increase their profit margins without fear of losing customers.

So many politicians and bureaucrats think that societal problems can be solved by throwing tax dollars at them, but the usual result is that increased government funding not only increases the tax burden on every working American but also rarely solves the original problem.

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