China implements incentives to boost declining birth rate

China is introducing new policies to encourage families to have more children, including free preschool, financial subsidies, and daily milk for mothers. These efforts come in response to a declining birth rate in China, where the population has dropped for three consecutive years. In 2024, China's birth rate fell to 1.2 children per woman, compared to 2.7 in 1979 when the one-child policy began. In Inner Mongolia's capital, Hohhot, families will receive up to $1,400 for their first child and annual payments for subsequent children. The city is also providing a daily cup of milk for mothers who give birth after March 1, 2025. The United States is experiencing a similar fertility crisis. The CDC recently reported that the birth rate in the U.S. has dropped to a historic low of 1.6 births per woman. This decline is linked to various factors, including reduced marriage rates and high living costs. Experts suggest that the U.S. may need to adopt strategies similar to China's to address its declining birth rate. However, many also argue that focusing on immigration and improving maternity and paternity leave could be more effective. In the U.S., births have decreased significantly across many age groups, especially among teenagers and young adults. Despite this, women in their thirties and forties are having more children than in previous decades. Experts say that societal pressures, high costs, and the desire for financial stability are preventing many couples from starting families. They emphasize the importance of policies that support families, rather than just financial incentives for having more children.