OTTAWA, ON (April 17, 2024): The Liberal government’s national child care plan, introduced in its 2021 federal budget, was meant to build a high-quality, affordable, and accessible child care system across Canada.
In this latest report, Widespread shortages, skyrocketing costs: the growing calamity that is government-controlled child care, Matthew Lau sheds light on the troubling outcomes of the Liberal government’s much-touted child care plan.
Instead of increasing access to care the percentage of parents who reported difficultly in finding care has increased (from 36.4 percent in 2019 to 46.4 percent in 2023) and the total number of children attending care has actually decreased by almost 4 percent.
Childcare providers themselves are financially strained by the administrative burden of the program, with some providers estimating a loss of half their earnings.
Lau notes that the program’s inflexible approach prioritizes formal, government-regulated options over the alternatives preferred by many families, resulting in diminished quality and choice (while also failing to achieve its stated goals regarding female employment and labor participation).
Widespread stories of child care shortages in Canada, not limited by geography nor affected by the political affiliation of the provincial or territorial government, confirm that the problems cannot be blamed on local implementation.
According to Lau, “the statistics and the stories on the ground provide evidence of widespread crises and shortages from coast to coast.”
The government’s takeover of the child care sector is unwarranted and has been unsuccessful. Instead, Lau advocates for a return to policies that empower Canadian families directly.
“The goal of helping families who are struggling with the cost of child care is entirely reasonable,” writes Lau.
“However, the government should not have any special program for child care – especially one that so greatly distorts the preferences of families and interferes with private providers.”
To learn more, read the full report here:
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Matthew Lau is a writer best known for his columns in the Financial Post. His writing covers fiscal policy, economic theory, climate change, government regulation, school choice, free markets, and other topics related to business, economics, and politics.
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