The text of this hearing begins with statements about the scope of interest, functions, and goals of the newly formed Select Committee on Children, Youth, and Families. Testimony then focuses on demographic and economic trends influencing family composition and incomes in the recent past, trends in federal spending for children and their families, and the future outlook. Subsequent statements by Dr. T. Berry Brazelton stress the need for preventive interventions, as opposed to therapeutic efforts, in the area of infant development. These remarks are followed by testimony concerning the role of education in a learning society, problems faced by American families, and recommendations to the committee. The testimony of children brought to Washington, D.C., by Save the Children is next included. Additionally presented are an examination of economic consequences of the change in the composition of the American family; a discussion of research indicating the importance of parents' physical and emotional accessibility for the emotional health of children; personal reflections on the importance of the traditional family in producing offspring with right character, on distortions of the ideal of equality, and on implications for public policy; and a brief overview of problems associated with government interventions. Included in the report are 25 tables and figures concerning economic and family conditions and an article examining marriage and divorce statistics. Letters written by children to the President are appended. (RH)