Paul Krugman points out that adequate child care, such as President Biden has championed, goes a long way to helping families make and keep money:
It’s ... instructive to compare the United States with other advanced countries, almost all of which have higher taxes and more generous social benefits than we do. Do they pay a price for these policies in the form of reduced employment?
Many Americans would, I suspect, be surprised to learn that the truth is that many high-tax, high-benefit countries are quite successful at creating jobs. Take the case of France: Adults between the ages of 25 and 54, the prime working years, are more likely to be employed in France than they are in America, mainly because Frenchwomen have a higher rate of paid employment than their American counterparts. The Nordic countries have an even larger employment advantage among women.
How can employment be so high in countries with lots of “job-killing” taxes? The answer is that taxes don’t visibly kill jobs — but lack of child care does. Parents in many rich countries are able to take paid work because they have access to safe, affordable child care; in the United States such care is prohibitively expensive for many, if they can get it at all. And the reason is that our government spends almost nothing on child care and pre-K; our outlays as a percentage of G.D.P. put us somewhat below Cyprus and Romania.
The American Family Plan would completely change this picture, providing free preschool for all 3- and 4-year-olds while limiting child care costs to no more than 7 percent of income for lower- and middle-income parents. If this raised employment of prime-age American women to French levels, it would add about 1.8 million jobs; if we went to Danish levels, we would add three million jobs.
Might we finally get to a place in American history where we have better conditions than many of our friends? We'll see.