Some Economics of Gay Marriage

The Supreme Court's decision on whether or not to uphold Proposition 8 has been at the forefront of many American minds over the past few days.  As the debate rages in Washington, citizens across the country are mulling their own philosophical and moral views as they relate to gay marriage, neither of which can be grounded in any true "facts."

Economically speaking, however, there are arguments to be made that do rely on concrete numbers.  So, let's have a look at what it could mean for the economy if same-sex marriage is recognized by the government.

Perhaps the most direct and immediate consequence would be a massive windfall for the marriage and divorce industry.  Forbes predicts that the 800,000 same-sex couples who already live together could add as much as $9.5 billion to those industries from things like wedding gifts, receptions and catering, and honeymooning.

Cities and states could also find some benefits.  New York City reported a revenue increase of $250 million when gay marriage was first allowed there.

Many companies have already seen and embraced the economic realities of gay partnership.  Many of the world's biggest companies know they must find the best talent for their companies.  As far as they are concerned, one's sexual orientation has nothing to do with their ability to be a competent employee.  Many of the HR packages and company benefits at firms are already extended to gay partnerships where gay marriage is still banned.

This may be the most compelling economic argument of all, as companies are only worried about their bottom line.  Economically speaking, it is in a company's best interest to attract the best and brightest, regardless of their sexual status.

Other changes include the benefits that traditional marriages enjoy now.  These include joint insurance plans and social security benefits.  Both of these would benefit gay couples, leading to more available disposable income.  And disposable income is often considered a driving force of the economy.

As the Supreme Court justices deliberate over their decision, which is scheduled to be handed down sometime this summer, they will be considering constitutional precedent over bottom lines.  But, many in the world of economics (which is really all of us...) may be looking forward to another positive jolt if Proposition 8 is struck down.

- Harrison Tucker



Sources:
http://finance.yahoo.com/blogs/daily-ticker/why-gay-marriage-good-economy-132309024.html
http://www.forbes.com/2009/06/15/same-sex-marriage-entrepreneurs-finance-windfall.html