Home
/
RELIGION & LIBERTY ONLINE
/
A Policy Solution to Fix Inequality and Boost GDP
A Policy Solution to Fix Inequality and Boost GDP
Dec 31, 2025 5:12 PM

Andrew Biggs of AEI has a piece up today at Forbes addressing the gender pay gap and provides a neat solution: “forbid women from staying at home with their children.” As Biggs points out, such a policy would address perhaps the greatest root cause of gender pay inequality: varied work experience attributable to choices women make. “Most mothers who stay at home or work only part-time are doing what they wish to do and what they view as best for their kids,” writes Biggs. This results in gaps in pay when those women re-enter the work force or increase their labor participation.

Biggs’ proposal to “make staying at home with kids illegal, just like child labor is illegal” would have another benefit favored by many: it would be a boon to GDP. As I point out in a review essay in the latest issue of Christian Scholar’s Review, the work that stay-at-home parents do is not counted toward GDP. When those parents pay someone to take care of their children as part of a business transaction, however, as in the case of day care centers, then that exchange does count towards GDP.

My piece, “Affluence Agonistes–A Review Essay,” takes a look at the book The Poverty of Nations by Wayne Grudem and Barry Asmus, in addition to a couple of other recent publications. The CSR essay expands upon a review of the Grudem/Asmus book I wrote for Public Discourse, “Life to the Full: The Dangers of Material Wealth and Spiritual Poverty.” As Grudem and Asmus put it simply, bat poverty “the goal must be to increase a nation’s GDP.”

So not only are stay-at-home moms a major source of wage inequality, they are also “a drag on GDP.” As one press report put it, “With female participation stagnating, potential growth isn’t rising as quickly.”

Biggs’ proposal to ban stay-at-home mothers should logically be embraced by both anti-gender inequality progressives as well as GDP growth fundamentalists. As I argue in the essay, “If a nation were to pursue GDP growth as its highest goal, it would probably institute policies and incentives to induce women to work outside the home and professionalize child care. GDP incentivizes specialization and the division of labor, since such transactions are the only things taken into account.”

But the Grove City College economist Shawn Ritenour rightly concludes, “We ought not give into the temptation that all of human welfare is encapsulated in GDP.” Another way of putting it is that men, women, and childrendo not “live on GDP per capita alone.”

Update: For those readers who might not bother to read Biggs’ piece, he does not (and neither do I, for that matter) actually advocate for this policy.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Senate Approves Religious Freedom Measure for Trade Bill
Yesterday the U.S. Senate voted 92-0 to approve an amendment which adds a religious liberty provision to the overall negotiating objectives outlined in Trans-Pacific Partnership (TPP). The addition wouldrequire the Administration to take religious freedom into account whenever negotiating trade agreements within the partnership. During a floor speech on the amendment earlier tonight, Senator James Lankford’s (R-OK)said, “Our greatest export is our American value. The dignity of each person, hard work, innovation, and liberty. That’s what we send around the...
Radio Free Acton: Acton Goes To High School
What happens when a group of high school students decide to form a group to discuss the intersection of religion, liberty, and markets? At Grand Rapids West Catholic High School, they founded The Acton Club. Acton Institute Director of Programs and Educational Impact Mike C. Cook talks with the founders of the club about their experience over the last year in starting the group and their hopes for the future on this edition of Radio Free Acton. Certificate of Achievement...
Are You Breaking the Eighth Commandment?
When is the last time you broke the mandment? (Depending on how you count them, thatusuallythe one about “Thou shalt not steal.”) Most of us would say we never (or almost never) break that one rule. We’re not thieves. We’re not swindler. We’re not plunderers. We don’t break that one at all. Or do we? As Kevin DeYoung (and the Heidelberg Catechism) point out, the mandment forbids more than outright robbery: In God’s sight, theft also “includes cheating and swindling...
The Moral Mess Of Myanmar
Greed. Lust. Corruption. Thirst for power. A wretched lack passion for human life. That is Myanmar. Myanmar is home to 1.3 million Rohingya, a religious and cultural minority in what was once known as Burma. The Myanmar government staunchly refuses to recognize the citizenship of the Rohingya, claiming they are all illegal immigrants of neighboring Bangladesh, despite the fact that many Rohingya families have lived exclusively in Myanmar for generations. This lack of citizenship makes the Rohingya vulnerable to trafficking,...
Samuel Gregg On Ratzinger And A Culture Of Ignorance
We are five months into 2015, and life is still unjust. People are still ignorant and hurting each other. All the things we hope and pray for – peace, love, faith, understanding – still seem unattainable. Pope Emeritus Benedict XVI (Joseph Ratzinger) has spent his life thinking, theologically, about these things. In today’s Crisis Magazine, author James Day examines Ratzinger’s writings and teachings regarding “the source of mankind’s pervading unhappiness and alienation from each other and God.” Ratzinger has seen...
The Moral Limits of Psychology
“Indifference to the moral dimension distorts the study of human action in economics,” says Rev. Gregory Jensen in this week’s Acton Commentary, “so too does it deform the discipline that reaches behind that action to the human mind: psychology.” Built on a sound anthropological foundation and guided by an equally sound morality that is clear on the proper goals of human life, the empirical findings and practical techniques of psychology can foster the flourishing of both persons munities. Unfortunately, as...
Dear Grads: Welcome To Work
If you’re a college grad, what was your first job out of college? Mine was working at a day-care center. It was not my dream job. I’m not sure I even knew then what my dream job was, but I knew that wasn’t it. There is a lot of talk in the media about the underemployed, people with a skill set that is not utilized fully in their current job. We also have a lot of young people graduating from...
The Myth of Homo Economicus
“As a social psychologist, I have long been amused by economists and their curiously delusional notion of the ‘rational man.’” writes Carol Tavris. “Rational? Where do these folks live?” In a review of behavioral economist Richard Thaler’s new book, Misbehaving: The Making of Behavioral Economics, Tavris notes how economists are slowly beginning to see — or, one could argue, finally returning to the notion — that the discipline ought treat man as more than a mere robot or calculator. “Researchers...
How Free Trade Helps the Poor
Several years ago economist Bryan Caplan provided the most succinct and helpful statement about how we should think about free trade: “We’d be better off if other countries gave us stuff for free. Isn’t ‘really cheap’ the next-best thing?” As with any simplification, critics could find many reasons to grumble about what that leaves unstated (e.g., trade leads to offshoring of jobs). But it highlights an important point about why free trade matters. Free trade is about as close to...
Religion & Liberty: From Shark Tank to Redemption
The Houston- based Prison Entrepreneurship Program looks at convicted criminals as if they were “raw metal in the hands of a blacksmith – crude, formless, and totally moldable.” PEP puts prisoners through a rigorous character training and business skills regimen to prepare them for a productive, even flourishing, re-entry to life after incarceration. Ray Nothstine took part in PEP’s “pitch day” presentations where prisoners test their start-up dreams before a panel of business people and investors. He describes his day...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved