Question

How does marriage and divorce affect the economy in both a positive and negative way?

Answer 1

Divorces are expensive. Between hiring separate attorneys and dividing assets, to starting over again with a single income, the cost of divorce has increased in the past few years. While divorces are expensive for the parties involved, there are implications for the economy as well

• A high divorce rate hampers economic growth, as it increases the number of households, which requires more power and resources.
• However, divorce rates appear to be falling, in part, because men and women are waiting longer to get married.
• Changing family dynamics can improve divorce statistics, which will help the economy.

When divorce happens a family is broken down and thus need of housing , energy , transportation etc increases . If divorce statistics are improved then US economy can experience financial stability for longer period of time resulting in economic growth.

Effects of Marriage

• Married Americans tend to have an above average income. This leads to more spending, which stimulates the economy.
• Americans who have never married spend significantly less, particularly those younger than 50. This suggests that if marriage rates increase, overall spending in the United States may increase thus stimulating economy.
• Marriage has positive impact on financial stability. Children raised in married , intact homes are financially and educationally more successful.
• Due to better education they are able to get better jobs and thus have better standard of living which boosts the economic growth.

To conclude we can say married people have more expendable income. As a result, they are able to buy more, which positively impacts US economy.