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Why Donald Trump’s ‘bucks for babies’ plan won’t work

4 3
30.04.2025

WASHINGTON, DC – MARCH 14: U.S. President Donald Trump and Æ A-Xii, the son of White House Senior Advisor, Tesla and SpaceX CEO Elon Musk, walks towards Marine One on the South Lawn on March 14, 2025 in Washington, DC. Trump is headed to Mar-a-lago in Palm Beach, Florida for the weekend. (Photo by Andrew Harnik/Getty Images)

Donald Trump is proposing a $5,000 “baby bonus” to reverse America’s plunging birthrates, but it’s an approach that has failed everywhere it’s been tried, says Eliza Filby

Elon Musk calls it a crisis more serious than climate change. US Vice President JD Vance warns of the “rejection of the American family”. Now Donald Trump is reportedly floating a $5,000 “baby bonus” to reverse America’s plummeting birthrates.

The urgency isn’t misplaced. Between 2007-2022, America’s birth rate dropped 20 per cent. Today, the average woman has just 1.6 children – a sharp fall from the Baby Boom era’s three-child average. Predictably, Trump’s plan has faced backlash. Critics argue the government should first fix America’s lack of paid family leave and affordable childcare. But that’s not why this cash scheme won’t work.

Financial incentives to boost birth rates have been tried worldwide – and mostly, they failed.

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