Sweden is paying its grandparents to babysit: Why it’s worth a try – Tyler Cowen

Sweden's new policy of subsidizing grandparents to babysit their grandchildren might initially seem excessive, especially given the country's excellent child-care facilities and high taxation. However, it aligns with economic principles like Pareto improvements. This policy can reduce work disincentives for parents, boost government tax revenue, and support single parents. While controversial, it demonstrates how framing can significantly influence our perception of policy ideas.

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By Tyler Cowen

At first glance, the policy sounds absurd, especially to many Americans: In Sweden, grandparents are now eligible for government subsidies to babysit their grandchildren. As a proud grandparent myself, I would be willing to pay to babysit my grandkids. (I don't have to, but I would.) It would feel wrong to accept government money for my services.

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