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					Does a Market Economy Really Need the Family?
The Decline of the Family

  Between 1940 and 1998 the percentage of births occurring out of
   wedlock increased from five to thirty-five percent.

  In addition, the United States, relative to other developed countries, has the
   highest rate of single-parent families because of its high illegitimacy and divorce
   rate, as well as its low co-habitation rate.

  An estimated 45% of the 67% of children born to married parents will endure
 the trauma of seeing their parents divorce by the time they reach 18 years of age.

  Scientific evidence suggests that parents divorcing is more psychologically
   damaging than if a parent were to pass away.
   The Role of Family & Values

The elemental capacity to trust and be trust-worthy...

Without the family,
trust struggles to develop
and the operations of a market economy
face numerous and costly obstacles.

   The market will never have the capacity to provide love, or
   instill understandings of   obligation and reciprocity.
  Why does the market economy need these values?

A social theory that lacks pureness of heart would
    relationships based entirely on contract and exchange
    prevalence of minimum-compliance-attitudes

Individuals would break promises in the absence of supervision
        and every commitment would require force
     inefficiency would plague the market economy.
 The Role of Family & Human Capital
Only the family has the capacity to nurture a child to its full
social and productive potential

Family expectations...
      reciprocity ~ children will provide care in return when
                         their parents reach old age

                  there is an incentive to invest

                Care provided by the market economy
         does not have this same expectation or personal stake.

    A child “[f]ed like a hamster by means of a bottle wired between the bars of its crib, deprived of
       warm personal contact with anyone who might treat it as a human being, [] [will] never
     acquire[] the TRUST in others that is a necessary condition both of civility and social order” and
                             the market economy at large. (Waterman 447)

      The consequences of being raised scientifically...
     no understanding of doing what is right for community as a whole.
     take every opportunity to achieve its own interests, regardless of the harm it may
       cause to others.
     absence of trust and trustworthiness ~ promises would not be kept

A society made up of such individuals will never function. Relations would become a war of all
against all and they would not understand the consequences of their actions, that such
 opportunism destroys cooperation and, subsequently, society and the market
                                         economy as a whole.
The Financial Costs
In the developed world billions of dollars have been poured into
                      welfare programs.

 Children of broken families not only perform poorly in
 academics, but they are more likely to abuse drugs and/or
 alcohol, engage in violence, suffer from problems of health
 and depression, or attempt suicide.
 Addressing the Problem...

Great Britain has considered proposals for creating an institute that would assist and
advise parents in child-rearing.

The United States and Holland have legislated new laws regarding employee rights to
parental leave, facilitating the fulfillment of work and family obligations.

France has taken to subsidizing families with two or more children.

   Johnson & Johnson reported its returns in productivity were four
      times the actual cost of subsidizing maternal leave or childcare.
Does a market economy really need the family?


    The Family...           A smooth functioning & efficient market economy

         Instills values          A productive market economy

         Builds human capital