This paper studies the economics of child care and how the cost of such care can limit the productivity of low-income workers as well as the development of their children. It suggests that the high costs of daycare are forcing poorer children into low cost daycare programs that are not conducive to children's development, health, and well-being. It also finds that, in the best interests of children, parents, and society, governments should provide financial assistance to offset the expense of child care.