The idea is good in theory, because it is childless couples who tend to be exceptionally rich and would have enough money to pay for the welfare of old-age dependents in the long-term future.
European governments presumably know that continent-wide hyperinflation is a likely result of projected old-age dependency ratios as governments with a limited tax base cannot cut welfare payments without violent protest and have no resources to raise more tax like Australia does. Angele Merkel presumably hopes that people who are childless will effectively be forced to save money through having it “minded” by the government.
The problem is that, in reality, the costs inherent in government regulation and taxation will simply drive people either to:
- greater hoarding of money, as with East Asia
- reduced investment due to even higher taxes for businessmen who often do not raise families because of their commitments
- this could mean even less economic growth and less money to raise children