It may be suboptimal, but what isn't? The problem here is assuming that the expensive bureaucratic credential based system is optimal or even better at all. "

It may be suboptimal, but what isn't? The problem here is assuming that the expensive bureaucratic credential based system is optimal or even better at all. "Everybody knows $SOME_NEIGHBOR and she's great with kids" is just a much better indicator of quality in child care than "$SOME_DAYCARE is licensed by $SOME_BUREAUCRACY." Also, I'm not even against state support for parents needing childcare, but giving $500 a month to each parent who needs it to find childcare in an informal system will actually be much better than a state run system that spends $2000 per kid.