Equal pay is the buzzword these days and whether or not it is included in Hospital Reimbursement Solutions , it will eventually be a topic that will have to be addressed. Statistically all around the world, women are being paid less than men. Some cities and countries are trying to enact equal pay laws but there is still a long way to go.
- In 2006, all women combined earned only 77 cents for every dollar earned by men.
- African American women earn only 63 cents on the dollar earned by men.
- Hispanic American women earn only 52 cents on the dollar earned by men.
According to the Katherine Lewis, Guide to Working Moms, the above statistics are actually worse: According to a study in part conducted by WomenCertified, a women’s consumer advocacy and retail training organization, women spend $4 trillion annually, accounting for 83% of all U.S. Consumer spending – or, an astounding two-thirds of the nation’s gross national product.
Advantages of Equal Pay
It seems absurd that there has to be an argument that states the advantages of equal pay but that is sadly the reality is there are out there people who argue that equal pay is not needed. Some people still think that women should be paid less for doing the same work is a man. The fact is equal pay benefits everyone in the society so since the sheer decency and rightfulness of having equal pay is not an enough to convince people, maybe appealing to their own self-interests will. So below are some advantages of equal pay:
Increased Buying Power
With equal pay, women will have a higher buying power which will grow the economy. Women already share a large part of the current buying power if not more and this also includes products made for meN. Women love to shop. Nearly a quarter of all video games are purchased by consumers aged 40 and older, and 38% of all video game sales are made by women. In fact, even when it comes to “men’s” products including sports items and expensive cars, women still spend more than men.
With increased pay women will not just have a higher buying power but they will also contribute greatly to the growth of the economy. Women are the main customers at home and an increase in purchasing power leads to a boom in the economy. A whopping 85 percent of purchasing decisions are made by women. They decide on most everyday items, like groceries and clothing, as well as on half of all automobiles, home-improvement products and consumer electronics purchased in the United States.
Over the next decade, women are expected to control two-thirds of consumer spending, according to a 2012 study by strategic communications firm FleishmanHillard and Hearst Magazines.
Economist Heidi Hartmann, president of the Institute for Women’s Policy Research, calculated it would be enough to expand the economy by at least 3 to 4 percentage points — an effect even greater when you take into account the fact that pay hikes would entice more women to join the workforce.
Growth of the Middle Class
The middle class has been referred to is the heart of an economy and there is truth to this. Equal pay would mean a stronger more vibrant middle class. Receiving smaller paychecks than their male equals at the workplace has cost women a lot of money. Over the course of her a career, a woman can lose between $700,000 and $2 million. With record numbers of women contributing to household incomes, the lack of equal pay for women for the same work hurts all middle-class families, including the men and children who rely on their contributions.
In middle-class families, a woman brings home around a third of the household’s total income. When a wife works there is increased upward mobility and when the wife earns what they are worth it’s even more increase in financial mobility and a faster-growing working class. It also means more families would be able to grow financially and join the working class. Additional income makes a key difference in families as they are able to pull ahead economically.
Just paying women fairly, according to a regression analysis of federal data by the Institute for Women’s Policy Research, would cut the poverty rate for working women in half. Women of color are particularly hurt by pay disparities; African-American women earn only 64 cents to a white man’s dollar, and Latinas take home a mere 54 cents.
Reduction in Poverty
poverty continues to rise and spread and the pay gap contributes to that. A recent report showed that a third of American women either live in poverty or are just on the brink. Why do women experience an unequal burden of poverty?
Maybe because a lot of them are the breadwinners and have to take care of more children than their male counterparts who earn more. In most child custody arrangement the woman has more time with the kids or all the time yet they earn less. This means more mouths to feed with less money.
The wage gap puts a terrible burden on families with only one female earner, which particularly hits African-American and Latino communities, where women are likely to support families on their own. The wage gap also increases the likelihood that women of retirement age will slip into poverty because their pensions and Social Security checks are shrunken by years of lower pay.