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How Childcare Costs Shape National Birth Rates
Description
In this episode, Lucas and Luna explore the powerful link between childcare costs and fertility rates across developed economies. Drawing on OECD data and the specific case of Germany's 2025 childcare subsidy reform, they examine how the price of daycare influences family size decisions. The conversation contrasts Germany's 7.6 billion euro investment with the US, where daycare costs can exceed 20 percent of median household income. They also discuss the unexpected role of grandparent-provided care and why simply subsidizing childcare may not be enough to raise birth rates. A thoughtful look at the economics behind one of the most personal decisions people make.