Germany's "Parent-money" is working

[Rochelle]

http://www.ft.com/cms/s/ab41ac24-31a1-11dc-891f-0000779fd2ac.html

The article says they aren't sure what is causing a baby boom in Germany, though it does mention the new Parent money--a new federal program designed to encourage couples to have more kids by providing them more money and time off to do so. It seems like it's having its intended effect, but I have to ask whether or not the cost is going help them in their end goal to prolong the viability of the German welfare state.

[error]

If you pay people to have babies, then you're going to have a baby boom. As for the welfare state, nothing can keep a welfare state going forever. The only question is how many people will socialism kill before people wake up and get rid of it.

[KBCraig]

"When you subsidize something, you get more of it!"
-Ron Paul, 2007

[d_goddard]

It's also guaranteed to raise unemployment... by raising the cost of employees and raising taxes.

[mvpel]

I seem to recall that Germany's population growth rate is lower than any population in the history of the world has ever recovered from, something like 1.3?

[PowerPenguin]

Does someone need to fund a SS ponzi scheme over there? That would be my guess.

[Rochelle]

I seem to recall that Germany's population growth rate is lower than any population in the history of the world has ever recovered from, something like 1.3?

From what I recall, every country in Europe has a lower birht rate than any other population in the history of the world

Nah, I think the Italians are really the worst, but Germany is (or was?) also quite bad.

It's also guaranteed to raise unemployment... by raising the cost of employees and raising taxes.

Well, I guess it's a good thing Germany is a great place to be unemployed! I can't see how they can continue on with this deficit spending though...they've consistently been over the budget deficit limit as a percentage of GDP since the EU put limits in place. This should work out great for the Euro.

[mvpel]

http://andrewhammel.typepad.com/german_joys/2006/02/why_germany_has.html
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The Allensbach institute, on of the principal public-opinion research institutes in Germany, recently asked Germans of child-bearing age why they aren't having children.  Here are some of the reasons (German):

   1. A child would be too much of a financial burden (47%)
   2. I'm still too young for that (47%)
   3. My career plans would be hard to fulfill with a child (37%)
   4. I haven't yet found the right partner (28%)
   5. I want to have the maximum amount of freedom, not to have to limit myself (27%)
   6. I have many interests that would be hard to reconcile with having a child (27%)
   7. Children are hard to raise; I am not sure I have the strength and nerves for that (27%)
   8. I want to be as independent as possible (26%)
   9. I would then have less time for friends (19%)
  10. I don't know if my relationship will stay together (17%)
  11. I or my partner would be at a career disadvantage if we had a child (16%)

...
The research I've read indicates that people are more likely to have children when they are bound into tight family structures, strongly religious, and have an optimistic, forward-looking attitude toward their lives and their societies. In most countries, people know well that having children means huge career sacrifices and costs tons of time and money, but they do it anyway (whether because of social expectations or strong drives), without expecting any reward from the government.  That's why I can't see how tinkering around the edges of German government policy is going to accomplish much; it cannot change these broad cultural factors.
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[d_goddard]

   1. A child would be too much of a financial burden (47%)

A rational economic choice. Maybe there is some hope for Germany yet.

   7. Children are hard to raise; I am not sure I have the strength and nerves for that (27%)

Personally, I think that should be concern #2, or maybe tied with #1.
Bet have your House in Order and deep inner reserves to draw on, before assuming responsibility for a new life... that wakes up every few hours for months on end... and then just when that ends, starts opposing any authority you thought you had