Hungary’s bold family policies have sparked global debate. They’ve taken a stand for traditional values, and the results are worth examining.
Hungary’s government, under Viktor Orban, has rolled out aggressive incentives to boost marriage and childbirth. A key measure offers a lifetime 25% income tax reduction for women per child. Four kids mean zero income tax forever.
This isn’t just a tax break—it’s a cultural signal.
Another policy provides large loans to newlyweds under 30. For each child, 25% of the loan is forgiven. Four children erase the debt entirely. It’s a practical push for young couples to start families without financial fear.
The numbers speak loudly.
Marriages in Hungary have doubled since these policies kicked in. Divorces and abortions have both dropped by over 50%. This reverses trends across Europe, especially during the lockdown years when family metrics elsewhere tanked.
Hungary spends 5% of its GDP on these family initiatives, a hefty commitment. For context, the OECD average for family spending is around 2.5% of GDP, per a 2015 report.
Orban’s government has made it clear: they prioritise Hungarian families over globalist agendas.
Critics argue these policies favour the wealthy and overlook the poor, like Hungary’s Roma population. A 2019 BBC report notes that tax breaks don’t help those with low incomes who pay little tax. It’s a fair point—poverty still hinders family growth for many.
Orban’s approach ties into his broader nationalist vision.
He’s openly anti-immigration, especially against Muslim inflows, saying, “We need Hungarian children, not numbers.” This stance has fuelled protests in Budapest but also resonates with conservatives worldwide.
The U.S. could learn from this. America spends $601 million annually on refugee resettlement while native families struggle. Redirecting funds to family tax credits could mirror Hungary’s success without expanding government bloat.
Hungary’s fertility rate has also ticked up, from “lowest low” levels below 1.3 children per woman to over 1.5, according to the Institute for Family Studies. It’s not a full recovery, but it’s a start—Japan, by contrast, has slipped into more profound fertility decline.
These policies aren’t just financial—they’re cultural.
They reposition marriage as a foundation, not a capstone, of adult life. In an era where Western nations treat marriage as optional, Hungary’s model challenges the status quo.
Orban’s government also offers other perks, like the “Women 40” program, which lets women retire after 40 years of work to care for their families. This program is a nod to the value of generational support, which is often lost in modern economies.
The thread mentions a potential U.S. parallel: Trump’s proposed $5,000 tax break for mothers. But as many have said, it’s not enough. Hungary’s comprehensive approach—tax cuts, loan forgiveness, and cultural reinforcement—sets a higher bar.
Australia faces similar demographic challenges.
Our fertility rate is 1.6, below replacement. Adopting Hungary’s model could encourage young Aussies to build families, but it would require ditching wasteful spending, such as on crazy climate initiatives that deliver little return.
Hungary’s experiment isn’t perfect, but it’s a blueprint for nations serious about family values.
It proves that with the right incentives, people will choose marriage and children, if the system doesn’t punish them for it.
Thought for the Day
“When all the dust is settled and all the crowds are gone, the things that matter are faith, family, and friends.” Barbara Bush
Cory Bernardi is the author of seven books and has been a member of the Australian rowing team, a publican, an investment portfolio manager and spent nearly 14 years as an Australian Senator.
