Child care isn’t a “lifestyle preference”

Kids are great. They're also expensive. [Bloomberg]( This is Bloomberg Opinion Today, a massive subsidy to the lifestyle preferences of Bloomberg Opinion’s opinions. [Sign up here](. Today’s Agenda - [Child care]( is [overpriced](. - [401(k)’s]( can be sacrificed. - [Gen Z’s crypto]( could be sliced. - [Lincoln’s]( not the GOP zeitgeist. Babies Can Break the Bank Haha, leave it to AOC to [remind]( the world that JD Vance once blamed daylight savings time, of all things, for America’s increasing distaste for procreation: That’s Father Time for ya — always getting in the way of date night! Not, I dunno, climate change, the [housing]( crisis or the fact that child care — in the US, at least — eats up a quarter of your paycheck: We don’t need to get rid of daylight savings!!! We need a social safety net that will guarantee every child in this country adequate, affordable care. Vance can [wax poetic]( about how universal child care is “a massive subsidy to the lifestyle preferences of the affluent” all he wants — it won’t change the fact that sky-high daycare costs prevent women in America from joining the workforce: In the US, families spend more money on child care than they do on a mortgage, [according to Zillow](. “The broad economic consequences are potentially severe, and not just for parents but also for mothers who can’t afford care and need to make decisions about whether to withdraw from the labor force or have fewer children,” Kathryn Anne Edwards [writes](. So rather than pointing fingers at daylight, let’s figure out how to fix the child care crisis. Some ideas: - A Capped/Costs System: If the private market for childcare were subsumed by public funds, Kathryn says families could pay a fixed rate for care of $15 per day, or about $3,900 a year, per child. “If care costs are more than a certain percentage of income (the federal government [defines affordability a 7%](), families would get help making payments,” she writes. - Free Child Care: In Berlin, Chris Bryant [says]( “daycare is free for all kids from age one until they start school at six.” What’s stopping the rest of the world from doing the same? “Rather than being a private commodity,” day care is “shared infrastructure every bit as [essential as libraries and parks](,” he writes, allowing mothers to stay in the workforce while their kids develop social skills under free supervision. - Pay Grandparents to Babysit: Giving Nana and Papa government subsidies sounds silly, but [Sweden’s doing it](! “As a proud grandparent myself, I would be willing to pay to babysit my grandkids,” Tyler Cowen [quips](. While the idea might be a bit out there, he notes that “it adheres pretty well to some basic economic principles.” I already came up with a name for the policy: “Give a Gran, Get a Grand.” What could be more [pro-family]( than that? Gen Z’s Money Moves Disclaimer: If you or your loved one maxes out a 401(k), prepare to be upset. In a new column, Allison Schrager [says]( there is such a thing as saving too much for retirement. She came to that conclusion after helping a young colleague join the company 401(k) plan. “Despite the lecturing of her friends and family, as well as her own best intentions, she had not yet signed up,” Allison writes. “Like any good retirement economist, I insisted she enroll immediately. I’ll help, I said. It will be fun. And it was — until we got to the part where she had to decide how much to contribute from each paycheck.” Allison went on to tell her: Don’t worry about getting your full employer match — do what makes you comfortable! “Everyone within earshot was horrified. She was leaving money on the table!” But saving for your golden years isn’t the end-all, be-all. In fact, Allison hadn’t set up an account until she was close to 30, despite the fact that she wrote an entire dissertation on retirement. Today, young people are actually a lot more prepared. In 2022, about 30% of Americans under age 26 had a retirement account with an average balance of about $29,000: “It is great so many people are on track for a well-funded retirement,” she writes. But there is one caveat: Some of them are [investing their savings in crypto](. Nir Kaissar [says]( Gen Z’s love affair with tokenized monkey jpegs will cost them dearly down the line. “About a third of their portfolios are invested in alternatives that include collectibles and cryptocurrencies,” he writes. “Unlike indexes that track broad stock and bond markets, collectibles and crypto expose investors to more than just volatility. There’s no practical way to buy the entire art or watch or sneaker market, which means investors are more likely to own individual pieces.” All those boxes of unopened Nikes might look nice on a closet shelf, but there’s no guarantee they’ll pay for a mortgage down the line. RNC Roundup Sadly, the tech wizards at Bloomberg wouldn’t let me transport [360 pounds]( of cheese curds in this newsletter, so there’s no way for you to taste the culinary [delights]( (and [horrors]() out of Milwaukee this week. But I can give you a feast of quotes, charts and photos which is … not as fun? But it will save you calories and lower your risk of cardiovascular disease! Bon appétit: Appetizer Quote: “Trump’s political rebound from January 6th, and the GOP’s expulsion and ostracization of those who stood up to him, has sent exactly the wrong message to Republicans: bow to Trump or bow out of politics.” — Frank Barry via [How Republicans Forfeited Lincoln’s Legacy]( Entrée Chart: In a typical election cycle, the national convention for each political party marks the moment when regular voters start paying attention to politics (ugh). But there’s [nothing typical]( about 2024, [writes]( John Authers: “[Joe Biden](’s embarrassingly poor debate performance and the [assassination attempt]( on Donald Trump have taken what was already a strange electoral year into hyperspace.” Now, bettors put Trump’s chances of winning back his perch in the Oval Office at 69%, a 17% bump from where he was a month ago. As the “Trump Trade” gains momentum, Jonathan Levin [says]( you can expect to see yields on longer-term Treasury securities rise more than shorter-term, a sign that “the Trump inflation threat is on the market’s radar.” Dessert Video: In case you needed another reminder that RFK JRr. is [a spoiler]( who could end up [hurting]( Biden’s bottom line, the independent candidate was “[mortified](” to discover a leaked snippet of his private [phone call]( with former President Donald Trump reached the bowels of the internet today. In it, Trump rambles about babies, vaccines, horses, mosquitos, AR-15s and assures “Bobby,” as he calls him, “We’re gonna win! We’re way ahead of the guy.” Further Reading If [Big Tech regulation]( won’t make people better off, don’t do it. — Bloomberg’s editorial board Judge Cannon — and her [Trump-appointed peers]( — have no respect for precedent. — Noah Feldman A Black Lives Matter rally [gone awry]( offers a First Amendment lesson. — Stephen L. Carter Ambani’s [$600 million wedding]( extravaganza is just business as usual. — Andy Mukherjee In China, Hunan eateries are now [more popular]( than Sichuan cuisine. — Shuli Ren Macy’s decision to [end buyout talks]( is a bet on brick-and-mortar. — Andrea Felsted Elon Musk’s [robotaxi plan]( is majorly flawed. — Dave Lee ICYMI Big [Supreme Court changes]( are in the air. Elon Musk [plans to move]( X and SpaceX HQs out of California. After 12 years of restaurants, Pete Wells is [stepping down](. Kickers [The poet]( who commands Myanmar’s rebel army. The loss of [India’s vultures]( had deadly consequences. The [dating apps]( give White women better matches. Notes: Please send [Donkey Sauce]( and feedback to Jessica Karl at jkarl9@bloomberg.net. [Sign up here]( and follow us on [Threads](, [TikTok](, [Twitter](, [Instagram]( and [Facebook](. Follow Us Like getting this newsletter? 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