Comment by redbluered

Cost of living for staff and lawful child to caregiver ratios. If you assume 1:4 or 1:5, that's around 100-125k per caregiver in tuition.

With reasonable overhead numbers (space, management, compliance, licensing, taxes, etc.), that's a poverty-level income for preschool teachers.

There is a strong argument for subsidies, at least in countries which have low birth rates and care about longterm social outcomes.