Marriage Is the Economic
Stimulus We Need
Thursday, November 06, 2014
It turns out that poverty rates are very low among intact families and prevalent among homes without a father. Children who grow up in single-parent households are much more likely to face economic trouble as adults.
Those who cheer divorce as a form of women's liberation, or who say that stigmatizing out-of-wedlock births is just right-wing sermonizing, just don't get this intertwined connection between two-parent households and economic success. Socio-cultural factors like the decline of marriage are leading causes of the wealth gap and the stubborn poverty trap in many low income neighborhoods.
For more economic insight, check out more of Stephen Moore's articles on CBN News here.
This isn't to say that kids who grow up in broken homes can't succeed - millions heroically do. It doesn't mean that every marriage was meant to be - many times divorce is the only option. But what is irrefutable is that marriage with a devoted husband and wife in the home is a far better social program than food stamps, Medicaid, public housing, or even all of them combined.
This conclusion is made clear by a new eye-opening and sometimes depressing report called the Index of Culture and Opportunity by my colleagues at the Heritage Foundation. It's conclusion: "We have to reshape our culture before we can ever hope to make a big dent in the number of poor households."
Some of the cultural indicators are going in a positive direction; others have taken a decidely negative course.
First, the good news: violent crime is down. So is the number of abortions.
But in other ways we are ripping our families and our society apart. Consider these statistics on family breakup.
"From 2001 to 2011, the marriage rate dropped by 10.3 marriages per 1,000 unmarried women, or 22.8 percent. Since the 1960s, it has fallen by about 50 percent."
According to one of the report's scholars, W. Bradford Wilcox, "only about half of the nation's adults are currently married, and about half of the nation's children will spend some time outside an intact, married home."
This is a form of child abuse. And those numbers are much higher in low income communities. In some cities like Detroit and Newark two of every three children are born out of wedlock. Name a government program that can take the place of a father.
This troubling trend appears to be a road block to the American Dream. One study by Harvard economist Raj Chetty and his colleagues, finds that when it comes to what is preveninng the economic upward mobility of poor children, "the strongest and most robust predictor is the fraction of children with single parents."
It's also true and often overlooked that family breakup creates a statistical illusion that we are making less economic progress than we actually are. For example, if a married couple earns $80,000, but then ends up in divorce, there are now two households earning $40,000. So it appears the economy is slipping and average household income is falling. But in fact what has slipped is the culture.
Meanwhile, birth rates are falling and falling. In only two of the last 40 years have birth rates exceeded replacement level fertility of 2.1 kids per couple.
Who will take care of and finance the retirement of the near 80 milllion baby boomers? Thank goodness for immigration. The population bomb that was once famously worried about by scholars like Paul Ehrlish has become a population fizzle.
Most economists agree that the sharp decline in the share of Americans between ages 18 to 64 that are working is a major economic hindrance. This isn't just happening by chance but rather as a result of policy and cultural changes.
Welfare households, the report finds, are much more likely to have no one working at all and so the assistance becomes a substitute for work. The value of work is denigrated in our modern society and welfare has been elevated. Millions of jobs are there for the taking if the unemployed and underemployed go out and obtain useful skills.
But our culture too often frowns upon Americans doing what are regarded as grimy, blue collar jobs - even though they can pay $60,000 to $100,000 a year. This may explain why it is so hard to get a plumber or carpenter or any kind of handyman these days.
We also seem to disparage the idea of young people, especially teens, working. We parents spoil our kids - and I'm no less guilty than others - with leisure and money. And many millennials have to come to think that to pull them away from the television or computer or Gameboy screen is an offense that is reportable to child protective services.
But this new report reminds us of the obvious: that there is dignity, character building, and self-sufficiency in all forms of labor.
One of my favorite scenes in a recent movie is in Cinderella Man, when during the depths of the Great Depression, James Bradock, played by Russell Crowe, is forced as a last resort to take a welfare payment from the government to feed his family. His sense of shame is clearly evident. Then, when he wins some prize fights and gets back on his feet, he goes back to the welfare office and returns all the taxpayer money he took in his hour of need.
Who does that today? It is now the opposite. The Obama administration runs television and radio ads assuring welfare recipients they should feel no shame whatsoever in taking a hand out and even tells them that the more they live off the expense of someone else (taxpayers), the better it is for the economy. Liberals are trying to bend the culture in a subversive direction and given that last year we had 47 million on food stamps, the Left is succeeding.
We economists bury ourselves in the data and the formulas to try to devise policy recommendations to make the economy grow faster and raise the living standards of workers and families. It's humbling to realize how much of our nation's economic success is based on a culture of virtue. Do the right thing, as Spike Lee would put it.
To save our economy from a path of decline we need to start with a personal and national commitment to sturdy families, strong parents, and a reemergence of the Protestant work ethic. That shouldn't be so hard.
is chief economist at the Heritage Foundation and an economics contributor to CBN.
