Earlier quoted context omitted.
Why is subsidized daycare necessary in these cases though? In America if daycare costs X and you earn Y much greater than X, then obviously you'll make more money going to work and sending your kid to daycare than being a stay at home parent. The people who choose to stay at home often either have multiple kids (higher X) or earn little enough (lower Y) that it's not an economic advantage for them to work. But those…
So, I think the argument would be that many mother's could go back to school and increase their skill-value to Y if they weren't stuck caring for children, maybe. I'm not sure. It's not clear to me that subsidized child-care is necessary, but I think if I were to make the argument, it'd look like that. EDIT: Another argument is that there are economies of scale to subsidized child-care. Such that caring for the margi…
There are some very difficult to snswer questions with a scale argument applied to young children. Without bothering to look for a source it seems quite reasonable that young children who socialise 1:(small n) with a caregiver in a family unit turn out quite differently to those who socalise 1:(big N) in a 'highly efficient' daycare centre.
I could see that argument either being a pro or a con; most parents are as bad at parenting as they are at everything else. But the issues involved in creating economies-of-scale in child care mean it should be considered potentially neutral until they have been debated (vs considered as a net-positive as is normal in economics).