Rediscovering the original and best social safety net

Best recession insurance: Marriage

Americans rediscovering the original and best social safety net

By Janice Shaw Crouse

Economists refer to the economic benefit that accrues to married couples as the “marriage premium.” A recent CBS television special asked the question, “Why is marriage such an economic turn-on?” The program “MoneyWatch” gave three reasons based on a report from the Pew Research Center’s report, “Women, Men and the New Economics of Marriage”:

Economies of scale: Married couples share the cost of necessary expenses, such as health insurance, utility bills and mortgage payments. That is especially significant today when more than two-thirds of men have working spouses and 22 percent of wives make more than their husbands.

Married couples earn more: From 1970 to 2007, the median household income for married couples rose more than incomes for unmarried couples. The mutual support that couples give each other and their mutual stake in the relationship means they work together toward their financial goals.

Married couples invest better: Married women invest in stocks more than unmarried women and, as couples, they “invest more, save more and are more future-oriented.”

http://www.washingtontimes.com/news/2012/may/3/best-recession-insurance-marriage/