Implementation of $10 A Day child care plan is projected to generate sufficient overall government sector revenues to pay for the additional government spending required to build and operate the system.
This analysis also projects substantial benefits to employers and households throughout the implementation period, and beyond.
Full implementation of the plan will have a significant and positive impact on GDP and jobs.
The increase to GDP is close to two per cent or $5.787 billion, and on full implementation employment increases by 2.8 per cent, or 69,100 net new FTE jobs — an employment multiplier of 36.4 jobs per million dollars of spending. Both of these multipliers are well above the benefits the province typically receives from other investments.
These gains will provide particularly significant benefits to single mothers, and help many families to leave social assistance, which will reduce income inequality.
Although the analysis focuses on the near-term, benefits will increase over time, as children who experience high quality, affordable child care enter adulthood healthier, better educated, and less likely to be involved in the criminal justice system — all of which contribute to higher earnings, higher tax revenues for governments, and reduced government spending.
The projected benefits to government are shared between the B.C. and federal governments, so it is reasonable to anticipate that the federal and provincial governments will share the cost of financing the $10 A Day plan.
Dave Popoff
Castlegar
