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Convergex is a leading technology firm, but they're also heavily involved in financial side of things, providing products for asset mananagers and the like. Well some of their people are out with a report that basically says a lack of marriage might be partially to blame for a slow economy.
Nicholas Colas, Beth Reed and Sarah Miller authored the study. Here's what they found. They seem to think declining marriage rates in America may be directly tied to falling personal income growth. Only 56% of American adults are currently married. In 1970 that number stood at 70%.
The report theorizes that men who are married develop a stronger work ethic and thus earn more money. That might make sense. I know my work ethic improved dramatically when I got married. I was suddenly responsible for someone other than myself.
Here's how the folks from the brokerage firm see it. Falling marriage rates equate to a slowing and dropping in personal income growth and that in turn hurts consumer spending and that in turn hurts the overall economy.
I'd like to add my own thought to that. There is what has been coined "The Wealth Effect." When people feel like they're doing well financially they tend to act like it. I know with a two income household for me and my wife, we feel much better than if we were living apart. So we have a tendency to participate in the economy more(that means spend).
I like their report, but what they have to say in it is indeed troubling. So come on guys and gals...get out there and get hitched. Call it your patriotic duty.