I would go further and say that the annual payment amount should be set by a feedback loop, so the incentive rises every year that the birth rate remains below whatever target (eg. replacement), and stabilizes as it reaches that target.

At some point, would-be parents at the margin decide they don't need a job to attain economic security.

This is basically a way of doing price discovery on the "market rate" of parenthood. Currently we're under-paying and getting the predictable outcome, and we're all out of ideas.

(In fact, I think this should basically be the solution to all labor shortages, of which parenting is just one example. The wage should increase until the market rate is found, even if that wage is much higher than people say it "should be").

I think the issue is that you pretty much can't pay enough.

I was reflecting, since becoming a parent, that there are basically two lenses with which to view the economics of parenting. You can children in terms of their cost and benefits in monetary terms, where money is the end and children are the means to that. Or you can view money as the means to support and provide for children, with raising them as the ultimate end goal. And people with the former worldview will most likely never have children, and if they do probably will not make good parents. Parenting is a 24/7 commitment for at least 18 years. It fundamentally changes the course of your life. And children also need to believe that they are the most important thing in their parents' lives, which is hard to do, by definition, when the most important thing is money.

I sit here trying to get some rest after having 5 days of rotating sick kids. When the baby was sick, he would wake up literally every hour; last night was the first in 5 days where I had any sleep stretch longer than an hour. (This also pales in comparison with the newborn phase, which is like this but lasts for about 4 months.) How much would you have to get paid to go without sleep for months on end? I was at a party a few months ago where someone asked "How many of you have caught vomit in your hands?" Every single parent raised their hand while every single non-parent looked on disgusted. How much would you have to get paid to catch vomit? I've been reliably sick about twice a week every winter for the last 7 years. How much would you pay to let a little germ-factory infect you all the time? (When governments have done medical experiments on this basis, it's been called abusive.)

When you have a realistic picture of what parenting actually entails, it starts to look a lot more like the economics of pricelessness [1]. There is usually no price at which people will be willing to compromise everything you give up by being a parent (usually things like liberty, experiences, security, peace) for parenthood if you don't want it. And conversely, there is usually no price at which people will give up the experience of parenthood for more money, if that's what they really want.

[1] https://ribbonfarm.com/2014/08/12/the-economics-of-priceless...

A better, cleaner solution is to remove old age benefits (Social Security and Medicare and Medicaid). A tax credit sufficient to incentivize attaining TFR would probably blow up the budget, and it would be hard to pin down the exact number, subject to tons of politics.

People think money is enough because they look at their lives and think 'how could I afford kids? Clearly I need money to do that.' and they don't think 'if I had extra money, would I spend it on someone else or on myself?' and the majority of people choose spending it on themselves instead of that potential child someone else.

Those people often don't even consider the time cost either. Which makes sense, if reason A is sufficient to say 'no' then why continue dwelling on other reasons? But even if there was more money and they were willing to not spend it on themselves, they now need to accept giving up roughly 90% of their non sleep/work time to someone else as well. That's not giving away something new you didn't have, that's giving up something you've been using and are accustomed to having.

It only takes a few percent of women to decide they don't want kids for career reasons for the replacement rate to drop below parity.

When you add those who don't want kids or can't have them for other reasons - not straight, asexual, emotional trauma, physically unable, others - getting to parity is even harder.

It's not stress. For a lot of history life was far more challenging, uncertain, and dangerous than life today.

Humans kept reproducing, aggressively enough to compensate for infant mortality, wars, and pandemics.

The big change is that the primary role of women doesn't have to be motherhood, where for most of recent-ish history it was.

I'm not saying a return to that is desirable. But I am pointing out that the causes of low birth rates aren't mysterious.

Women who do choose motherhood are more likely to have kids younger.

But if given a choice, a significant proportion of women will either not choose motherhood at all, or will delay it significantly, which lowers fertility and raises infant mortality.

It doesn't need to be a majority of women. A fairly small percentage is enough to shift the numbers.

> not even up to $111k is enough to convince enough women to have more children to maintain replacement rates (and I don't blame them)

What is the lifetime private cost of raising a child in Norway? The $111k sounds like it's just offsetting the opportunity cost of birth, not the opportunity cost nor direct costs of raising a kid.

So basically they probably don't lose their wage for the duration of their absence but it's likely still a net negative to them (financially aside from the physical and time burdens) and in line with societal expectations created over decades?

I say crank up the numbers then. Give them a bigger tax credit too. Hold it long enough for societal expectations to slowly adjust.

If you want to reach the ground floor in a tall building, it makes a lot of difference if reaching it by elevator, or jumping from the window. Speed matters! A _very_ slow transition probably could be managed without disruptive impacts on the individual level. But we slam the brakes in ~2 generations, such a way a large share of people alive today will be still be alive to become destitute and unsupported by lack of replacements, both on macroeconomic level, and in the micro level. If a single kid today go childless itself, he/she is very likely to become a lone senior with no close family, eventually.

A constant stream of young workers is required for a sustainable economy.

In order to pay for pensions, the government borrows money from young, working adults. This is effectively what happens in pay-as-you-go public pension systems (which is most of them, to my knowledge, apart from the US, I'm not 100% sure how pensions work in the US). The money you put in actually goes to pay for another person, with the government guaranteeing that they will do the same for you.

If the percentage of retired people increases, the percentage of working adults naturally decreases. Eventually, you'll hit a turning point where the government can no longer borrow from working adults. The government is now in a debt crisis and has to loan money from banks or foreign investors at a significantly higher interest rate, which becomes even more unsustainable if the percentage of retired people increases even more.

This is what is happening in e.g. South Korea and Japan. There are too many old people, and too few working adults. This is caused ny low birth rates over a long period of time.

What's the point of sustainable resources, stable climate and affordable real estate in a society that fades away? What difference does it make whatsoever?

Everywhere except sub-Saharan Africa and parts of the Middle East have sub-replacement birthrates at this point. Including India and China. China has started seeing contraction, India will start seeing contradiction in ~20-30 years since the measures lag.

It is by no means an issue just in the West.

You're right the situation is different with respect to Nigeria, but the birth rates are also falling in all of the remaining countries. Nigeria's is still high but also falling.