…this time from the Hungarians on raising birth rates. A couple of eyebrow-raisers:
Mothers can stay at home for three years after giving birth, with the first six months paid at a rate higher than their previous salary – they receive their full gross salary, not just the net amount.
Mothers under 30 are exempt from personal income tax, and mothers with two or more children pay no personal income tax for the rest of their lives.
Married couples expecting or having a child can apply for an interest-free loan up to €30.000 – and if they have three children, the loan is fully forgiven.
The government offers low-interest fixed-rate housing loans for families. In the case of three or more children, families can access up to €127,000.
The government also provides non-refundable financial grants up to €37.500 for families who move to rural areas.
Gotta say that as much as I’m approving of all this assistance, I’m not sure who pays for it all. Then again, if you offset those costs against what a government might spend on illegal immigrants, then maybe the system will work.
The results so far, though, seem to be pretty good:
In 2010, Hungary ranked last among EU member states in terms of total fertility rate, but according to the latest Eurostat data from 2023, we have risen to third place. This significant progress is largely thanks to the targeted government family support policies implemented over the past fifteen years. As a result, since 2010, 200,000 more children have been born than would have been expected based on previous demographic trends. In parallel with the rise in births, the number of marriages has significantly increased, the number of divorces has decreased. Even the number of abortions has fallen significantly – all without the introduction of new restrictive legislation.
Wow. And the principles behind this initiative are sound, too:
First, increase family incomes so that people have the financial base to start and raise families.
Second, support housing, because having a home is fundamental to starting a family.
Third, ensure long-term financial security for women. A lot of women would like to have families but they are afraid that motherhood would mean an existential risk. We built a safety net to increase the income (and the living standard with it) for women.
If you want people to do something, then subsidize it — especially if that “thing” is ruinously expensive through no fault of theirs.
I’d like to see the results of this in, say, twenty years’ time when this “baby boom” starts getting into the workplace.
But in the meantime, I’m impressed.
