Birth rate subsidies fail when governments treat falling fertility as a simple money problem. Jim Penman argues the deeper issue is psychological, because wealthier societies often have fewer children, not more. This article explains why Jim believes governments need to fund science, not just keep increasing childcare payments and family bonuses.
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Watch the video above, or keep reading for the key lessons and insights.
Why More Money Has Not Fixed Falling Birth Rates
Jim Penman’s argument is direct: governments keep spending more money to lift birth rates, but the results are not showing up.
As Jim puts it, “They’re not having any effect at all.”
That view challenges the most common explanation for falling birth rates. Many people say they would have more children if housing, childcare, and living costs were lower. Jim does not deny that those pressures exist. His point is that when governments test the money theory at scale, the birth rate still does not recover.
In the conversation, Japan is used as a clear example. The video discussed Japan recording around 688,000 babies born in 2024, 1.6 million deaths, and a population decline of more than 900,000 people. It also discussed Japan increasing childcare spending to around 3.5 trillion yen, or 25 billion US dollars, and setting up a new 600 billion yen support scheme from 2026, rising to 1 trillion yen by 2028.
Jim’s response was simple: “Money. Why don’t you have kids? Money. It’s always the same answer.”
But he argues the answer does not fit the evidence.
He points to Japan, South Korea, Eastern Europe, Scandinavia, and Hungary. Hungary, he says, is spending something like 5% of GDP on family subsidies, with no clear effect. His argument is that if direct financial incentives were enough, countries spending billions would already be seeing strong results.
Instead, Jim believes prosperity changes behaviour.
He says, “The wealthier you are, the fewer children.”
That is the centre of the argument. Jim believes falling fertility is linked to priorities, psychology, dopamine, community, work ethic, and the way people respond to comfort and abundance. In his words, “Even though common sense says more money, more kids, human biology says more money, less kids.”
This is also why Jim connects the issue to his wider epigenetics research. Through Epigenes and La Trobe University, he says his team has about 15 researchers. They have tested a thousand drugs in nerve cells, found 61 with interesting effects, and narrowed that list to nine for animal testing.
The goal is not to force people to have children. Jim says the goal is to understand the psychological change behind falling fertility and look for ways to improve happiness, community connection, work attitude, and family motivation.
For readers who want more background on Jim’s work and thinking, the Jim Penman profile on Jim’s Group gives useful context about the founder behind the research and the franchise network.
What Should Governments And Families Do Instead?
The practical lesson is not that money does not matter at all. It does. Families still need housing, food, income, and stability.
The lesson is that money alone is a poor explanation and a poor solution.
For governments, Jim’s advice is to stop repeating the same policy pattern. More subsidies, more childcare support, and more payments may help individual families manage costs, but Jim argues they have not solved the birth rate crisis.
His suggested next step is basic science.
Jim says his research head believes that between $100 million and 200 million Australian dollars could help solve the problem by understanding the psychological process behind falling fertility and working out how to reverse it. Compared with the billions being spent on subsidies, Jim sees that as a small and practical research investment.
For families, the message is more personal. Jim says people need to look honestly at priorities. Career, housing, travel, eating out, lifestyle, and comfort can all become higher priorities than children. When that happens across a whole society, birth rates fall.
For franchisees and business owners, the lesson is broader. Jim’s Group has always been built around practical systems, customer service, and local ownership. A person looking at Jim’s Group franchise opportunities is not just buying work. They are choosing a way to structure income, time, responsibility, and family life.
That does not mean a franchise automatically solves personal priorities. It means the right business model should support the life someone wants to build.
The same thinking applies to customers. When people book local services through Jim’s Group, they are often dealing with local family businesses, not faceless operators. That local ownership model matters because it keeps work, service, and community close together.
Jim’s bigger point is that societies cannot solve human problems with financial policy alone. They need to understand behaviour. They need to study motivation. They need to support work, family, community, and purpose together.
For more of Jim’s business and research thinking, readers can also explore Jim Penman’s business lessons and videos.
Common Questions About Birth Rate Subsidies And Falling Fertility
Jim Penman argues they do not work at the level needed to reverse falling fertility. He says countries have tried bonuses, childcare support, and parent benefits without restoring birth rates.
Jim says wealthier people and wealthier societies often have fewer children. His view is that prosperity changes priorities, psychology, and behaviour.
Jim believes governments should fund scientific research into the psychological and biological causes of falling birth rates, including dopamine, epigenetics, and behaviour change.
No. Cost of living still matters for families. Jim’s point is that affordability alone does not explain why birth rates keep falling even when governments spend billions on support.
Readers can learn more through Jim’s public content or contact the team through the Jim’s Group contact page for service or franchise enquiries.
Build A Business That Supports The Life You Want
If you are exploring how work, family, income, and lifestyle fit together, start by learning how the Jim’s model works. Visit the Jim’s Group franchise opportunities page or contact Jim’s Group to ask about available opportunities in your area.
Learn more about joining Jim’s Group at jims.net or call 131 546 today.