| Abstract: | This paper argues that children are a special subgroup of society in that they represent an opportunity gain for the whole society. Self-interested individuals acting atomistically are not motivated to contribute optimally, if they contribute at all, to the realization of this social opportunity. Neo-classical economic theory handles societal opportunities as public goods, giving the government a positive role. But, it can be argued that financing of a public good by means of general taxation, violates the public good argument. Such a financing method requires, in addition to the public goods argument, a moral or merit good argument. This paper attempts to provide such an argument. It will also be argued that the current method of providing child support in the U.S. is defective. |
