The wedding industry is worth
a whopping $51bn in the US.
IN JUNE 2015
, a historical case of
Obergefell v Hodges
, the Supreme Court
finally ruled five to four in favour of same-sex marriage being legalised in all 50
states. The success of the landmark case meant that marriage equality has since
been rooted in the US constitution – a decision that Barak Obama claimed
‘would end the patchwork system that we [the US] currently have.’
The law change on same-sex marriage meant that the economy would not
only benefit directly from wedding-related spending, but it would also affect
productivity within society and businesses, and the personal lives of those
within the community.
America had already seen that legalising same-sex marriage had the
potential to generate millions of dollars worth of revenue. Same-sex marriage
has been legal in New York since 24 July 2011, an act that generated significant
economic growth. The state reaped $259m in the year following the law change,
solely from wedding-related spending and licence fees.
Since the Marriage Equality Act was passed, economists have been studying
its effect on the economy. In the words of UBS chief economist Paul Donovan, ‘in
a decision which affects 6-7% of the US population, of course there’s going to be
some economic consequence.’
Economists can make educated estimates of how much money each state
stands to gain from legalising gay marriage by calculating three major factors: the
average cost of the wedding in a given state, the number of same-sex couples
living in that state, and the marriage rate. For example, a study by financial
advisors and experts Nerdwallet found that California’s economy is to gain $414m.
Not only will each state reap the benefits of the extra revenue from wedding-
related spending; they will also see advantages in the corporate world. A top
economist at UBS said that by denying same-sex marriage rights, companies
‘erode the economy’s competitiveness’ and ‘hold back labour force mobility at
the expense of much-needed productivity’.
It makes sense. Productivity in the workplace has already been seen to
increase from employees feeling that they are in less negative and prejudiced
surroundings. Couple this with the fact that same-sex couples now have the
freedom to move between states to fill job roles that they may have turned down
before because of a state’s laws on same-sex marriage, and you have a situation
where companies are able to maximise their labour potential. Corporate
America realised that by irrationally discriminating against a section of society,
they were denying their economy the full value of that group’s skill set.
Major companies were all on board in supporting the Supreme Court same-
sex marriage case. More than 60, including Apple, Nike and Morgan Stanley
argued that continuing to deny this human right made it difficult for them to hire
top applicants. Now couples can travel between states to take new jobs or retire
anywhere, knowing they will be treated as a married couple in situations such
as a medical emergency.
There’s also evidence that married couples are more likely to be financially
stable and probably going to be home-owners, or at least, looking to invest in
property. According to Bloomberg’s Josh Barro, these couples would be less likely
to apply for government assistance, reducing government welfare spending.
In the same way that larger companies will benefit from the Supreme Court’s
decision, smaller businesses in the wedding industry such as cake-makers and
florists are enjoying the boost to trade from an enhanced market. More same-
sex couples are expected to walk down the aisle than ever, bringing with them
imaginative trends and inspiration, and opening doors for niche and bespoke
brands. Meanwhile more established businesses have their work cut out, from
adapting, revamping and considering broader markets, to revising their HR
policies. Exciting times!
A year after
historic
legislation in the
US, PWM’s Millie
Stockwell takes
a look at the
impact of same-
sex marriage on
the economy
pink weddings magazine 29
Economics
Same-sex
marriage
makes
cents
