Kerby Anderson

In previous commentaries, I have talked about the declining birth rates in most developed countries. People are not having as many children as they used to. John Goodman explains why there is a birth dearth.

First, there is the opportunity cost of motherhood. He explains that “for most of the 20^th century, a typical woman aspired to be a housewife and mother. In the interim, she chose occupations that accommodated her husband’s career. Teaching, nursing, and secretarial work, for example, are in demand almost everywhere.” In the modern era, woman have more opportunities and have entered such fields as medicine, law, business, and STEM in large numbers.”

Second is the cost of raising children. “For most of human history, children could be thought of as an ‘investment’ that was moderately profitable for families.” But in the last century the transfer of wealth from children to parents reversed. At the same time, parents had the desire to see their children do well in life which causes them to focus on competition with other children.

This led to a third reason: the cost of childhood competition. We compete for scarce resources such as city apartments, concert tickets, or seats at sporting events. “Many of the things we compete for involve children – scholarships and admission to elite schools and universities.” Those at the top of the income ladder can provide more than those further down the income ladder.

A final reason is government regulations that have a negative impact on affordability of children. For example, rising housing costs since 1990 are responsible for 11 percent fewer children. Government has made childbearing more expensive. These are some of the reasons for the birth dearth.