If we want prosperity, one important step is supporting and rebuilding the family. This is the central argument presented by the economist Philip Pilkington in his new booklet “Family Matters: Why Our Choices Determine Our Economic Prosperity”, which is published by the Alliance for Responsible Citizenship (ARC).
The study connects economic growth, and demographic trends to the strength of family structures.
The modern economy often focuses on productivity and investment, but family stability is frequently overlooked as a crucial factor, Pilkington maintains.
Without strong families, societies face declining birth rates, lower labour force participation, and rising welfare costs, all of which hinder long-term prosperity.
Looking ahead, Pilkington warns that declining fertility rates could lead to economic contraction, similar to Japan’s experience. He links issues such as low birth rates, mental health challenges, substance abuse, and crime to family breakdown, suggesting that strengthening family structures could be a key to reversing these trends.
One of the most striking points in Pilkington’s publication is that marital fertility – the number of children born to married couples – is significantly higher than non-marital fertility. Marriage provides both emotional and financial security which makes couples more willing to have more children.
This is crucial because a stable birth rate is essential for sustaining a productive workforce and preventing economic stagnation. Societies that see a decline in marriage also tend to experience overall population decline, something highlighted in a new Iona Institute paper.
In those countries, policies often focus on boosting fertility rates through financial incentives, such as child benefits and tax breaks. However, Pilkington argues that the real issue is not just birth rates but family formation. Simply encouraging people to have more children without strengthening family structures is short-sighted.
Children born into stable, two-parent households generally experience better outcomes in education, health, and future employment. In contrast, births outside marriage often correlate with lower stability, higher poverty rates, and increased reliance on State support. If governments want higher birth rates, they should prioritise policies that encourage marriage and family stability rather than just providing direct financial incentives.
When families break up, the State must step in, but this comes at a significant financial cost to the tax-payer, and the families themselves.
By shifting the focus from individual fertility to family stability and formation, policymakers can create conditions that naturally lead to higher birth rates and a more sustainable economic future.
The consequences of family breakdown extend beyond economics and welfare costs. Pilkington highlights social problems like crime, addiction, and mental illness that are often linked to unstable family environments.
One particularly telling statistic from the British government says that 24pc of adult prisoners had been in the care system at some point of their childhood.
Pilkington’s research makes one thing clear: economic prosperity and social stability are deeply intertwined with family structures. Countries that neglect the importance of marriage and family will face declining birth rates, rising welfare costs, and growing social problems.
