2. Won’t this just incentivise people to breed?

2. Won’t this just incentivise people to breed?

Answer

No more than a very high NZ Super payment encourages people to live longer than they otherwise would. The evidence tells us that families with very young children are vulnerable and the consequences of their children being disadvantaged end up costing society an awful lot of money. This policy alleviates some of that stress at source. And of course the children of today are the taxpayers of tomorrow who – under the current arrangements – are expected to fund the basic income for elders. No children = no pension.

So there is no evidence that “breeding” is an outcome, and when you consider the full cost of having children you’d see why. This policy exists in many countries that have very low fertility rates and it hasn’t resulted in more kids. It has resulted in parents investing their children more however.