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I think they mean supported maybe? I can definitely see a typical economist giving arguments why women going into the workforce and away from the family 'workf
by woolvalley 8y ago
I think they mean supported maybe? I can definitely see a typical economist giving arguments why women going into the workforce and away from the family 'workforce' is a good thing, this being encouraged by the fed which leads to policy changes by congress people.
I think what people argue is multifold:
- Households tend to pay for things in terms of budget percentages vs something more rational. Ex: People tend to semiconciously target 30% of their income towards housing, and will upgrade and downgrade their housing accordingly as incomes go up and down. A dual income household will therefore pay approx double the normal price if single family households are the norm.
- The cost of things in some markets, especially NIMBY housing markets, are demand sensitive at the margins since the supply isn't responding properly due to rent seeking structures. So if a new more competitive creature called the dual income household lands on the scene, the price norm will adjust to assume a dual income household vs a single income household as the market price
- Employers consider cost of living in pay to make a competitive offer to employees. If the typical household is dual income, the pressure to pay more to cover this norm is reduced. People quickly figure out that you need to be dual income to pay your rent and have a 'family sized' lifestyle.
- Iterate this kind of model several times over a lot of stuff and you need to be a dual income household in many cases to tread water.
So what you are saying and what others say can both be true at the same time. Dual income norms increase total economic output, but also make it very hard to compete as a single income household on the market, which have other knock on effects such as decreased fertility since all of the 'free' household labor has now disappeared.
Go watch "F is for Family" for a 1970s time capsule of how family life was back then. You have a suburban white single family household living in a house on a single lower-middle class income, with 2 cars, the conflicts that arises as the wife starts working and her previous 'free' household labor disappears and more.
- gumby 8y agoThanks, good analysis.