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May 10, 2018 | Closing the Gender Pay Gap Key to Social and Economic Progress

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

Many people talk about gender pay inequality as a female problem, actually it is a problem that costs the overall economy (everyone) greatly. While business leaders and politicians fear slow growth and fixate on ideas to stimulate the economy, pay equality is an obvious area to focus policy attention.

A woman earns around 80 cents for every one dollar earned by a man. What would happen to the economy if the gender pay gap closed?  Here is a direct video link.

What does equal pay mean for the economy? from CNBC.

One thing for sure, policies that continue to funnel income gains to the same tiny fraction of the working population over the past 20 years, have had a counter-productive, depressive effect on the velocity of money (movement/multiplier effect) through the economy, as shown below since 1900 from Hoisington Management.  If we want to increase the growth, we need to spread the wealth and share child rearing responsibilities more equitably.

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May 10th, 2018

Posted In: Juggling Dynamite

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