Elon Musk’s recent comments encouraging Americans to have “three or more” children, regardless of financial concerns, have sparked a debate about the feasibility of expanding families in the face of rising costs. Musk made these remarks at a pro-Trump rally in Pennsylvania, urging people to overcome worries about affordability and simply start families, assuring them that “costs will work out.”
The cost of raising a child in the United States has reached alarming levels, with an average annual expense of $21,681, as reported by GoodHousekeeping.com. A study conducted by LendingTree in 2023 revealed that expenses related to housing, food, childcare, health insurance, and transportation contribute to this estimate, bringing the total cost of raising a child to adulthood to approximately $237,482. This figure does not even include expenses for higher education or other luxuries such as family vacations, enrichment classes, or extracurricular activities. The increasing cost of essentials has placed a financial strain on many families, with child-rearing expenses growing by 19% over the past seven years, outpacing wage growth and inflation.
Childcare and housing are the primary factors contributing to this financial burden. According to UrbanSitter, over half of U.S. parents pay a minimum of $1,000 per month for childcare, with some families shelling out as much as $2,000. Meanwhile, housing costs have also surged, with the current median household income required to purchase a home standing at $105,504. Rising food prices have only exacerbated the financial challenge, with the USDA reporting nearly a 10% increase in food prices in 2022 due to factors like inflation and disruptions in the supply chain. Consequently, the costs associated with raising children have become a pressing concern that extends beyond individual families, potentially leading to long-term implications for society as a whole.
The expenses linked to raising children have become increasingly daunting for U.S. families. A video posted by a father of six in California on X (formerly Twitter) in July showcased a grocery receipt totaling $444 for a week’s worth of groceries from Trader Joe’s. A journalist for Parents magazine responded to the video, acknowledging the reality of hefty grocery bills for large families and sharing her own experience as a mother of five. Additionally, the average cost of a wedding in the U.S. is around $41,000, providing another reason for families to hesitate about expanding their household.
Elon Musk’s vast wealth and influence allow him to overlook these financial concerns. With holdings in companies like Tesla, SpaceX, and X, as well as co-founding OpenAI and selling PayPal, Musk’s net worth is estimated at $242 billion, making him the wealthiest person globally according to the Bloomberg Billionaires Index. Tesla’s recent financial reports indicate a profit of $2.2 billion in the third quarter of 2023, with sales rising by 8% to $25.2 billion. Musk’s unparalleled financial resources highlight the disparity between his reality and that of the average American family.
Musk’s advocacy for Americans to have children stems from his ongoing concern over declining birth rates. During the rally, he emphasized the importance of not overly worrying about financial matters and encouraged people to have children, assuring them they would not regret it. This sentiment aligns with Musk’s previous statements on X, including a post in July 2022 where he identified declining birth rates as the most significant threat civilization faces. In February, Musk expressed his belief that children are a source of joy and urged people to become parents, lamenting the population decline affecting many countries.
Musk’s comments have elicited significant public backlash, with critics highlighting his privilege. Social media users on platforms such as Yahoo! Finance and Facebook have responded with remarks underscoring Musk’s detachment from the financial realities faced by typical Americans. Some commenters have suggested that Musk lacks an understanding of poverty in America, while others have accused him of being out of touch with the cost of living. Additionally, skepticism has been raised regarding Musk’s ability to juggle his responsibilities as a parent given his numerous children, with some questioning his motivations behind encouraging larger families.
