Pink Weddings Spring 2016 Pink Weddings Spring 2016

Same-sex marriage makes cents 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 Economics 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! pink weddings magazine 29

Pink Weddings Spring 2016 Pink Weddings Spring 2016 | Page 29