This paper examined the case for public subsidization of child care services from the point of view of an economics theory. It was suggested that public subsidization could be justified either as a way to correct a distortion in resource allocation or as a way to change inappropriate income distribution. The allocative argument consisted of three issues: (1) whether subsidization of day care is the most economically efficient means for helping poverty children become "respectable" citizens, (2) how child care responsibilities cause discrimination against women when they choose to work outside the home and how changing the day care situation might help and, (3) whether a public role in day care is necessitated by parents' lack of knowledge about the quality and long term effects of the day care their children are receiving. The income distribution argument was discussed in terms of improving long-run economic opportunities for disadvantaged children and mending inequalities between families. Specific conclusions were drawn with regard to such day care issues as tax deduction, parent education, and welfare families. The general conclusion was that substantial public subsidization of day care did not seem justified on the basis of information now available. (JMB)