Pro-Family Policies...

While this might not be the exactly perfect solution, but it is the right kind of solution, and should be encouraged.

Across the advanced world, countries with larger public old-age pension systems tend to have lower fertility, even after accounting for a very wide range of other social and economic variables, such as income levels, female labor-force participation and schooling.

Before entitlement programs were developed, most people relied on their children to take care of them in old age. Entitlements socialized this arrangement: Now each generation relies on its children collectively.

The modern system minimizes the suffering of older people who were childless or unlucky. But it creates a free-rider problem. Some people make the financial sacrifices required to raise children, but everyone gets the benefits.

I guess I never really thought about this part, but it does makes sense:

By raising kids and paying payroll taxes, on the other hand, parents make two layers of contributions to the fiscal health of entitlements. This unfairness has consequences.

In the absence of Social Security and Medicare, many Americans, particularly those with high incomes, would simply save more for their own retirements. But many would also raise more kids.

Our old-age programs, as currently designed, harm both the economy and family formation. Supply-siders should seek to mitigate both distortions.