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Notes -
The state should do more lottery-based rewards. A one-time 20K subvention per kid, that’s boring, and everyone knows it doesn’t pay for the child’s maintenance. But 20% chance of 100K, now you’re talking, people will keep pressing that button for the dopamine hit, then the gambler’s fallacy comes into play, they’ll be sure the 5th, 6th, 7th time’s the charm, and when you win it’s like getting a free kid, so you can get right on making the next one since you were already psychologically primed to pay for the previous baby.
This would be dysgenic though, for it would most influence the reproductive decisions of those who are poor and relatively high in negative risk aversion.
Something like a 20% of chance of 100K paid out linearly over 5 years in the form of non-refundable tax credits would work better. Thus, for one kid, you get a shot at getting a tax refund of 20K in a given year for five years, but only if in that given year you paid at least 20K in income taxes. Non-refundable, so if you only paid 15K in income taxes in a given year, you only get a refund of 15K that year; if you paid zero or less you get refunded zero. This would stack, so a pair of twins could get up to 40K knocked off your taxes a year for five years.
Having a lottery reward capped at annual income taxes paid would still preserve a lot of the fun and hype, but would be less dysgenic. The payout over five years has the added benefit of selecting for those with a modicum of future time orientation.
Or the hypothetical future time oriented person could get a 20k raise per year without having to have a kid.
Sub-1 TFR of 120 IQ children or 4+ TFR of 90 IQ children, which one is really more dysgenic?
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Name a eugenic intervention. Face it- the poor and high time preference always are more willing to do stuff like that for cash.
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I’m not too worried about dysgenic effects at this juncture, we have so little children that I’d take even lower class stock. Besides ,such subventions already exist in a similar form with dysgenic effect, in germany we have ‘children’s money’, which is at 255 euros/month/kid for the poorest (297 if you work), then you get the same in tax credit as you go up in income.
Of course, most of those subventions are officially justified on the grounds that every child should have a “minimum” to live on, which some courts and left-wingers keep increasing like they do every other minimum. And when the right’s at the helm, they increase it for more natalist and family values reasons.
So it’s hard to get a big part of that into a randomized payout, but it kind of ruins the bonus psychological effect of gambling if it’s just tax credits over years.
What I want to do is psychologically trick people (the ultimate decision lies with women) into having kids. Not pay them the full cost, and even less enormous sums in tax credits so that rich women in banking and medicine who understand opportunity costs have children, just cheaply manipulate them for cents on the dollar.
(I’m trying to keep this fun for the thread’s sake, but I can’t help veering into the culture war, broadly defined.)
Side-note:
You could say the lower class are true risk-takers, mavericks and entrepreneurs, not scared bean counters like the middle class who insure everything and buy bonds despite having a stable job.
And yet, usually less risk aversion is correlated with higher economic status:
Although I’ve also read that it’s U-shaped, with the middle class most risk averse, like the cliché above. In that perspective, it’s likely that a randomized bonus has a stronger positive effect than a fixed sum, ie more bang for your buck, also and especially for the rich.
I was discussing the, imo, incoherent, common view of risk a few days ago. I don’t think you can call the risk averse “those with a modicum of future time orientation” – The main distinction between losers and winners in this game is: how much are they willing to pay for their risk aversion, or for their risk taking? Buying insurance or a lottery ticket both make you a sucker, of opposite risk aversions.
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