Money for kids doesn’t promote fertility

The Herald reports:

It comes as Peters unveils new election policy proposing to create a “Kiwi Kids Grant” for parents, one of whom must be a New Zealand citizen, for their first three children. 

The grant would be worth $5000 per child for each of their first three years, meaning families could receive up to $45,000 in total. …

In a statement ahead of Peters’ address, he referenced the country’s current birthrate of 1.53 births per person, which fell below 2.1 births per person which the party said was needed to maintain the population.

Falling birthrates is a concern, but there is zero chance that splashing out money like this will increase the fertility rate.

In Hungary they had a policy where a mother who has three children is exempt from income tax for the rest of her life. That is worth a lot more than a one off grant for three years. Hell I’d have another kid or two if it meant no more income tax.

But I am in a minority. The policy has not worked. Their fertility rate is only 1.56 today. It has not grown.

NZ First’s policy will also not work.