{"id":1115404,"date":"2021-12-13T17:14:33","date_gmt":"2021-12-13T22:14:33","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1115404"},"modified":"2021-12-13T17:14:36","modified_gmt":"2021-12-13T22:14:36","slug":"trump-era-economist-uchicago-professor-says-childcare-costs-may-rise-120-under-bidens-spending-agenda","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-era-economist-uchicago-professor-says-childcare-costs-may-rise-120-under-bidens-spending-agenda\/","title":{"rendered":"Trump Era Economist, UChicago Professor Says Childcare Costs May Rise 120% Under Biden\u2019s Spending Agenda"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftrump-era-economist-uchicago-professor-says-childcare-costs-may-rise-120-under-bidens-spending-agenda%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1115404&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>An analysis from University of Chicago economics professor Casey Mulligan found that President Joe Biden\u2019s \u201cBuild Back Better Act\u201d could increase childcare expenses by more than 120%.<\/p>\n<p>The multitrillion-dollar bill \u2014 which contains many portions of President Biden\u2019s economic agenda \u2014 would introduce or <a href=\"https:\/\/www.dailywire.com\/news\/congressional-budget-office-build-back-better-act-will-increase-deficit-by-367-billion\">expand<\/a> various federal programs, including universal preschool, childcare subsidies, and climate change initiatives.&nbsp;<\/p>\n<p>In an op-ed for <a href=\"https:\/\/www.wsj.com\/articles\/biden-would-make-daycare-even-pricier-child-care-cost-quality-regulation-build-back-better-11639084122\">The Wall Street Journal<\/a> written by Mulligan \u2014 who also served as chief economist for the Council of Economic Advisers during the Trump administration \u2014 the legislation presents a \u201ctrifecta\u201d of cost-increasing forces:<\/p>\n<p>First, it would remove much of the incentive to offer lower-cost care. Millions of families would have their child-care expenses capped by statute, which means they\u2019d pay the same at an expensive facility as at a cheaper one. Providers would quickly discover that lower prices no longer are much of a competitive advantage. Moreover, the providers would be reimbursed extra for what Congress calls \u201cquality,\u201d which is a euphemism for having more staff per child. The history of rate regulation is that cost-plus schemes result in needless waste and higher prices for consumers without quality improvements.<\/p>\n<p>The bill\u2019s limits on funding religious education contributes to part of the cost increase:<\/p>\n<p>Churches and other faith-based institutions have a natural cost advantage in child care because church facilities would otherwise sit unused on weekdays, when the demand for care is greatest. Build Back Better would squander this advantage by financing capacity expansions only at nonreligious competitors.<\/p>\n<p>The bill would also inflate costs by complicating the regulatory environment:<\/p>\n<p>Second, providers would need extra staff to comprehend and comply with all the new statutes, certifications and agency rules. Just as physicians complain about paperwork eating up time that could be spent with patients, child-care providers will lose time they could be spending with kids. Third, the bill imposes \u201cliving wage\u201d regulations on staff pay. In a study for the Committee to Unleash Prosperity, I estimate these regulations alone would add 80% to child-care costs.<\/p>\n<p>Overall, Mulligan says that a family with an infant and a four-year-old would see an additional annual expense of up to $27,000 if they do not qualify for subsidies. He recommended cutting taxes so that children can receive \u201cthe best care available\u201d \u2014 remaining at home with their parents.<\/p>\n<p>In another scathing article, The Wall Street Journal\u2019s editorial board <a href=\"https:\/\/www.dailywire.com\/news\/the-wall-street-journal-slams-biden-and-dems-build-back-better-price-tag-is-lie-of-the-year\">argued<\/a> that the \u201clie of the year\u201d is the Biden administration\u2019s attempts to hide the true costs of its proposals. Citing analyses from Penn Wharton Budget Model and the Congressional Budget Office, the columnists note that the Build Back Better Act would add roughly $3 trillion to the national debt over ten years \u2014 and that if the bill passes, Democrats would \u201cown all of the deficits, debt and inflation that result.\u201d<\/p>\n<p>On Monday, former Speaker of the House Newt Gingrich <a href=\"https:\/\/www.dailywire.com\/news\/former-house-speaker-argues-bidens-spending-plan-is-a-direct-assault-on-americas-standard-of-living\">said<\/a> that Biden\u2019s Build Back Better Act is a \u201cdirect assault\u201d on Americans\u2019 standard of living.<\/p>\n<p>\u201cI think the country understands that even more spending just increases the inflation rate. The numbers last month were the worst in 40 years,\u201d Gingrich said. \u201cIf you\u2019re a working American, or if you\u2019re an American on a limited income, you\u2019re paying more for gasoline, more for rent, more for food. It is a direct assault on the standard of living of most Americans.\u201d<\/p>\n<p>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <a href=\"https:\/\/www.dailywire.com\/subscribe\">member<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An analysis from University of Chicago economics professor Casey Mulligan found that President Joe Biden\u2019s \u201cBuild Back Better Act\u201d could increase childcare expenses by more than 120%.The multitrillion-dollar bill \u2014 which contains many portions of President Biden\u2019s economic agenda \u2014 would introduce or expand various federal programs, including universal preschool, childcare subsidies, and climate change initiatives.\u00a0In an op-ed for The Wall Street Journal written by Mulligan \u2014 who also served as chief economist for the Council of Economic Advisers during the Trump administration \u2014 the legislation presents a \u201ctrifecta\u201d of cost-increasing forces:First, it would remove much of the incentive to offer lower-cost care. Millions of families would have their child-care expenses capped by statute, which means they\u2019d pay the same at an expensive facility as at a cheaper one. Providers would quickly discover that lower prices no longer are much of a competitive advantage. Moreover, the providers would be reimbursed extra for what Congress calls \u201cquality,\u201d which is a euphemism for having more staff per child. The history of rate regulation is that cost-plus schemes result in needless waste and higher prices for consumers without quality improvements.The bill\u2019s limits on funding religious education contributes to part of the cost increase:Churches and other faith-based institutions have a natural cost advantage in child care because church facilities would otherwise sit unused on weekdays, when the demand for care is greatest. Build Back Better would squander this advantage by financing capacity expansions only at nonreligious competitors.The bill would also inflate costs by complicating the regulatory environment:Second, providers would need extra staff to comprehend and comply with all the new statutes, certifications and agency rules. Just as physicians complain about paperwork eating up time that could be spent with patients, child-care providers will lose time they could be spending with kids. Third, the bill imposes \u201cliving wage\u201d regulations on staff pay. In a study for the Committee to Unleash Prosperity, I estimate these regulations alone would add 80% to child-care costs.Overall, Mulligan says that a family with an infant and a four-year-old would see an additional annual expense of up to $27,000 if they do not qualify for subsidies. He recommended cutting taxes so that children can receive \u201cthe best care available\u201d \u2014 remaining at home with their parents.In another scathing article, The Wall Street Journal\u2019s editorial board argued that the \u201clie of the year\u201d is the Biden administration\u2019s attempts to hide the true costs of its proposals. Citing analyses from Penn Wharton Budget Model and the Congressional Budget Office, the columnists note that the Build Back Better Act would add roughly $3 trillion to the national debt over ten years \u2014 and that if the bill passes, Democrats would \u201cown all of the deficits, debt and inflation that result.\u201dOn Monday, former Speaker of the House Newt Gingrich said that Biden\u2019s Build Back Better Act is a \u201cdirect assault\u201d on Americans\u2019 standard of living.\u201cI think the country understands that even more spending just increases the inflation rate. The numbers last month were the worst in 40 years,\u201d Gingrich said. \u201cIf you\u2019re a working American, or if you\u2019re an American on a limited income, you\u2019re paying more for gasoline, more for rent, more for food. It is a direct assault on the standard of living of most Americans.\u201dThe Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.<\/p>\n","protected":false},"author":99,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1115404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1115404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1115404"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1115404\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1115404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1115404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1115404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}