Thus affirms the bipartisan scholarly consensus report, “Rebalancing: Children First,” fruit of a three-year collaboration between an interdisciplinary and politically diverse group of policy experts convened by two major US think tanks: the American Enterprise Institute and the Brookings Institution.
In order to come up with actionable policy recommendations geared to improving the lives of children (and consequently improving their future adult lives), the group addressed numerous domains such as household resources, family structure and stability, early development, health, and education.
The scholars make proposals for increased investment in areas such as the child tax credit, the Supplemental Nutrition Assistance Program (SNAP), public health insurance for children, and apprenticeships and technical education.
These proposals, and others, purport to be budget neutral, financing increased spending on programs benefitting children by redirecting (thus the work’s title “Rebalance”) resources currently favoring wealthier adults. Currently, more than 40% of the federal budget flows to Americans over the age of 65, compared to only 7.4% spent on children, the report notes, calling for a new “generational contract.” The report suggests how to rebalance existing investments, including some reductions in spending on older Americans, whose wealth has grown considerably over recent decades, along with tax code reforms.
The consensus report was presented at a livestreamed launch event on February 8, 2022, featuring three panels discussing ways for lawmakers to improve children’s life outcomes through budget-neutral policies.
Northwestern University’s Diane Whitmore Schanzenbach and Council of Economic Advisers Chair Cecilia Rouse explained the value of public investment in children, noting that most new parents are not at the height of their earnings potential and cannot invest as much in their children as they would like.
AEI’s Michael R. Strain then spoke with Sen. Mitt Romney (R-UT) about his recent proposal to expand the child tax credit. Sen. Romney touted the expansion as a way to boost America’s declining birth rates, and he suggested ways to implement it without discouraging employment.
In the final panel led by the Brookings Institution’s Richard Reeves, Harvard University’s David Deming highlighted the importance of improving low-income children’s academic performance. Duke University’s Lisa Gennetian discussed the science of early-age brain development. Indiana University’s Kosali Simon noted that investments in children’s health improve outcomes later in life. AEI’s W. Bradford Wilcox emphasized how children are most likely to flourish when raised by two married parents.