Inflation’s Impact on Childcare Costs: Michael Faulkender Addresses ‘Kudlow’

In an appearance on ‘Kudlow,’ Michael Faulkender, former Assistant Treasury Secretary for Economic Policy, stated that there are no significant changes causing a decrease in inflationary pressures. Meanwhile, the increasing rate of price hikes is not sparing anything in America; this phenomenon can also be observed when it comes to childcare expenses. According to research by LendingTree published recently, the costs related to bringing up kids escalated 20% from $18,167 (in 2016) to a whopping sum of $21,681 in 2021. The data further suggests that families will have to spend approximately $237,482 over the course of eighteen years for raising children while leaving college-related costs aside entirely (FOX Business calculation). Moreover, most parents consider bringing up kids a more expensive affair than they had initially anticipated; in fact, nearly 55% admitted that they went into debt to cover childcare expenses. Food, clothing and day care are the biggest financial burdens for families with young children, according to LendingTree’s studies (Genaro Molina / Los Angeles Times via Getty Images). Congress provided emergency funding amounting up $24 billion to safeguard children service facilities affected by Covid-19. However, this pandemic relief program expired at the end of September 2023; experts warn that without such financial assistance, childcare providers might have no other option but raising tuition fees or laying off staff (Matthew Ludak for The Washington Post via Getty Images). A recent study by a left-leaning think tank called Century Foundation predicts closure of up to 70,000 child care facilities that would deny access to nearly three million children. Bank of America Institute’s report also suggests that further price hikes could affect the US economy since more than twelve percent of households routinely spend money on such services; higher expenses related to young kids will significantly put pressure upon consumers forcing them either curb expenditures in other sectors or lower consumption (FOX Business calculation). The present-day high prices are inflicting heavy blows for most American families as the price increases are evidently observable, and households must shell out around $1069 more monthly compared to three years ago when inflationary pressures started mounting.