>This assumes the value of the parent working is greater than the value generated by the alternative consumer spending.

I don't think the benefit is even contingent on the parent working, and it definitely isn't contingent on the value of their current and discounted future earnings appreciation being greater than the cost of sending the kids to daycare. From what I can tell you can put the kid in daycare then lay on a beach if there is anything of that sort in the New Mexican desert.

I'm open to the argument that by certain measures "free" childcare leads to increased economic output, but they've certainly not crafted the program in a way I would expect someone with that aim to do it.