A bit too political for LessWrong in my opinion ...
Yet a policy of "poor people should have fewer [X], rich people more" sounds heartless [...]
Indeed it does, any policy proposing new advantages for the rich and disadvantages for the poor sounds heartless, especially if it sounds like it's intruding in people's private lives (and the decision of whether to have kids is pretty darn private).
(I would probably tend to be in favor of such a policy, though a lot depends on how exactly it's implemented, but it's not very surprising that it sounds heartless; it is, but that doesn't make it automatically wrong)
I think "new advantages for the rich and disadvantages for the poor" hits on the problem precisely.
But note that the policy as stated doesn't actually specify who would be advantaged or hurt by new incentives. The one suggestion that is specified, subsidized contraception, would disadvantage the disproportionately-rich taxpayers and might be a greater advantage to disproportionately-poor users.
Yet it's perfectly natural to assume that the unspecified policy implementations would end up on net advantaging the rich and disadvantaging the poor, isn't it? I suspect that even the most anti-libertarian people could give you an intuitive explanation of how regulatory capture works in cases like this.
I recently read an article by Steve Sailer that reminded me about something I have been puzzled by for a long time. Relevant paragraphs:
Poor people having fewer children means that the children have more resources available per capita making the children better off. Rich people having more children actually increases equality in society since it reduces the per capita resource advantage their children have. Rich people giving to their children is also one of the few cases where the redistribution of wealth doesn't reduce incentives for wealth creation. Rich people care about their children too.
Since programs aimed at reducing teen pregnancy rates do seem to have had some effect, we known something like this is possible without being horrible to the potential parents it targets.
Yet a policy of "poor people should have fewer children, rich people more" sounds heartless despite increasing general welfare both by making poor children better off and by reducing the privilege of rich children thus increasing equality which we seem to think is ceteris paribus a good thing.
Why is that?
Edit: To test the source of the reader's intuiton (assuming he shares it with me), I encourage the consideration of two interesting scenarios that may depart from reality.