Why Child Care Is Going to be a Problem

[intercst]

{{ Ensuring quality child care from birth to kindergarten will take more than just child tax credits. It will require contending with the reach of financial power and market structure, because eight of the top 11 child care businesses in the country are now owned by private-equity firms.

Many of these firms recently lobbied against a broad-based federal child care benefit because, as one noted, it could “place downward pressure on the tuition and fees we charge” and “adversely affect our revenues.” It resulted in higher fees and worse care for families and abysmal wages for workers. This is classic corporate extraction, with an economic toll topping $200 billion a year. }} (Note: the “extraction” is about $2 trillion/year in health care – that’s why we’re paying double the cost of other countries.)

https://www.nytimes.com/2024/08/25/opinion/kamala-harris-economy-trade-antitrust.html?unlocked_article_code=1.Fk4.acUD.hbq_MNAIhxRL&smid=url-share

Private Equity will fight pretty hard to maintain that kind of skim – it’s like the kind of pricing gouging we see in health care.

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[pauleckler]

In Missouri we voted down an option to give property tax breaks to child care services. Some thought it was a subsidy for businesses. Others thought welfare moms would use the service to hang out in taverns.

This is a good reason to make child care part of the public school program. As with school they can provide basic service for all. And those who want better are free to use a private service.