The real reason this is “bad” is because the policy actually being implemented is, as the GP comment demonstrates, to get women into the workforce. This requires the goal to be getting them out of the home away from their children. Thus, you must relatively penalize mothers who stay home and care for their children, which is what this policy does. Of course, it is worse for children, worse for families, worse for mothers, worse for just about everything except “business.”

Edit to add: It is only better for the business and the economy short term, because ultimately it results in a lower birth rate and below replacement level fertility is the main problem we currently have for the near-future economy