Commentary: Could a US$70,000 baby bonus solve South Korea’s fertility crisis?

Commentary: Could a US$70,000 baby bonus solve South Korea’s fertility crisis?


But will these measures actually lead to people progress? After all, the government might end up paying many individuals who otherwise would have had kids.

Think that, after putting the plan into process, simply one- twelfth of the kids born were induced by the payment. In that case, in expected- worth terms, the two years ‘ expenditure of per- head income yields just one- tenth of the calculation presented above – that is, 4.5 years of more tax receipts. In terms of governmental terms, this is not a lucrative deal given that those receipts are likely to be discounted for a while and even account for about a fourth of income.

You may also believe that it is worthwhile to invest money to increase the number of Asian babies. After all, people in rich nations are generally content, which is admirable in itself, despite their contributions to society.

However, if addressing common resources imbalances is&nbsp, one of the motivations for this plan, it may make governmental problems worse.

However, it’s impossible to say how much influence the Vietnamese subsidies may possess, as there is no precedent.

The closest had been Hungary’s subsidies to childbirth, including earnings- tax exemptions and totaling to about 5 per cent of gross domestic product. Although these measures were just put in place a few years back, there is some evidence of rising fertility levels in Hungary, but they are still far below their replacements of 1.6.