3 ms·

Given 1-4, and the fact that the investment in raising a child is almost entirely borne by the parents while the returns (financial, emotional, social, etc) are

by john_b 14y ago

Given 1-4, and the fact that the investment in raising a child is almost entirely borne by the parents while the returns (financial, emotional, social, etc) are distributed more widely, sperm or egg donation programs seem like a logical alternative. It's probably the only circumstance in which you can actually make money (instead of spending it) in the process of creating a human. Genetic factors could also capture some of the correlation that would otherwise be present due to #5 in a nuclear family kind of environment. Since the value of children vis-a-vis retirement planning is no longer as significant as it once was several centuries ago, it seems to me that there are few good material reasons to have children for most middle and upper-middle class people. Very high income people can reap benefits via inheritance, but most people don't have enough wealth for that benefit to outweight the costs (both actual and opportunity) involved in raising children. This isn't to say that the non-material benefits of raising children cannot be significant. But these benefits are highly individual and should average out over a sufficiently large sample, so I'd expect large scale societal trends in childbearing to closely follow the financial cost/benefit analysis inherent in the decision.

rayiner 14y ago
> Since the value of children vis-a-vis retirement planning is no longer as significant as it once was several centuries ago It's just as significant as it always has been--we have just decoupled the relationship and created a free-rider problem in the process. Every scheme of retirement depends on the existence of successive generations. That is true whether you're talking about traditional societies where children take care of their parents, or modern societies where the childrens' generation makes payments to the parents' generation through either social security taxes, or dividend payouts from equity ownership. The free rider problem we've created is that everyone is eligible to take social security, even if they haven't produced offspring that will labor in the economy while the retired generation lives off their production. Indeed, we've also created a free-rider problem along another dimension: we have lots of people in the present who benefit from the governments' taking out debt to fund services and infrastructure, but who won't create any offspring that will pay the taxes that will pay that debt.
- Pkeod 14y ago
  Should people be ineligible if they are born infertile? We could say that we probably won't have enough younger people to take care of the older people as birth rates decrease, but I think robots and AI will be more developed by then that either more people will be available to take care of the elderly and or the robots will do it along with all other service and manual labor jobs. No matter what happens we will adapt.
- john_b 14y ago
  Every scheme of retirement depends on the existence of successive generations. That is true whether you're talking about traditional societies where children take care of their parents, or modern societies where the childrens' generation makes payments to the parents' generation through either social security taxes, or dividend payouts from equity ownership. I was referring to individual-level retirement planning. That is, does it make sense for me to invest in one or more children based on the expectation that those children will directly help me (financially and otherwise) during retirement? Social security originated in a time when, barring catastrophic wars, it was inconceivable that the U.S. population could ever decrease. It has worked thus far because a productive younger generation has always been able to pay for a retired older generation. However, as far as I know, it was always a program whose ethical justification was that you get back what you put in, plus some return. Whether or not you have children is irrelevant. Furthermore, if we presume that the ethical justification for social security is that one's children are going to be productive members of society, how can we adjust for unproductive children? Should parents whose children die before entering the workforce be denied social security? What if their children live, but are unemployed for many years? These are serious questions that would have to be addressed, but doing so would simply not be possible in many cases since parents tend to die before the productive output of their children over the course of their working life is known. This is also true even when applied to future generations as a whole. A future generation can be less productive than the present one, just as one's future child can be less productive than you. If social security is an intergenerational contract that involves a transfer of wealth from the young to the old, then it's an unjust Ponzi scheme that will collapse as soon as demographic trends are no longer able to sustain it. Ideally, the benefits received from any retirement program, whether public or private, would be dependent upon an individual's productivity over the course of their life. Any other system inevitably involves some centrally managed authority attempting to equitably transfer wealth from one set of people to another, which is a prescription for corruption.

by john_b 14y ago

rayiner 14y ago

> Since the value of children vis-a-vis retirement planning is no longer as significant as it once was several centuries ago It's just as significant as it always has been--we have just decoupled the relationship and created a free-rider problem in the process. Every scheme of retirement depends on the existence of successive generations. That is true whether you're talking about traditional societies where children take care of their parents, or modern societies where the childrens' generation makes payments to the parents' generation through either social security taxes, or dividend payouts from equity ownership. The free rider problem we've created is that everyone is eligible to take social security, even if they haven't produced offspring that will labor in the economy while the retired generation lives off their production. Indeed, we've also created a free-rider problem along another dimension: we have lots of people in the present who benefit from the governments' taking out debt to fund services and infrastructure, but who won't create any offspring that will pay the taxes that will pay that debt.

Pkeod 14y ago
Should people be ineligible if they are born infertile? We could say that we probably won't have enough younger people to take care of the older people as birth rates decrease, but I think robots and AI will be more developed by then that either more people will be available to take care of the elderly and or the robots will do it along with all other service and manual labor jobs. No matter what happens we will adapt.
john_b 14y ago
Every scheme of retirement depends on the existence of successive generations. That is true whether you're talking about traditional societies where children take care of their parents, or modern societies where the childrens' generation makes payments to the parents' generation through either social security taxes, or dividend payouts from equity ownership. I was referring to individual-level retirement planning. That is, does it make sense for me to invest in one or more children based on the expectation that those children will directly help me (financially and otherwise) during retirement? Social security originated in a time when, barring catastrophic wars, it was inconceivable that the U.S. population could ever decrease. It has worked thus far because a productive younger generation has always been able to pay for a retired older generation. However, as far as I know, it was always a program whose ethical justification was that you get back what you put in, plus some return. Whether or not you have children is irrelevant. Furthermore, if we presume that the ethical justification for social security is that one's children are going to be productive members of society, how can we adjust for unproductive children? Should parents whose children die before entering the workforce be denied social security? What if their children live, but are unemployed for many years? These are serious questions that would have to be addressed, but doing so would simply not be possible in many cases since parents tend to die before the productive output of their children over the course of their working life is known. This is also true even when applied to future generations as a whole. A future generation can be less productive than the present one, just as one's future child can be less productive than you. If social security is an intergenerational contract that involves a transfer of wealth from the young to the old, then it's an unjust Ponzi scheme that will collapse as soon as demographic trends are no longer able to sustain it. Ideally, the benefits received from any retirement program, whether public or private, would be dependent upon an individual's productivity over the course of their life. Any other system inevitably involves some centrally managed authority attempting to equitably transfer wealth from one set of people to another, which is a prescription for corruption.