Government support of population growth


  • Fiscal policies in support of population growth
  • Social welfare policies in support of population growth

Nature

Tax relief and social benefits tend to be provided to families in proportion to the number of children. This fails to exert any pressure on parents to limit the size of their families and thus encourages population growth.

Incidence

In the UK in 1993, universal child benefit was one of the most controversial benefits of the welfare state. It was paid to 7 million families, regardless of their income, and cost the government £6 billion per year. Families got £10 a week (or £40 per month) for the first child, and £8.10 for any others up to the age of 16 (which may be continued to 18 if the child is in full-time education). In France nothing was paid for the first child, but the equivalent of £62 a month was given for two children, £140 for three, £220 for four, and £300 for five. In Germany, £21 per month was paid for the first child, from £21 to £39 for the second (depending on income), from £42 to £67 for the third, and from £42 to £73 for the fourth.


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