Home About Archives RSS Feed

The Independent Investor: Do Women Have a Choice?

By Bill SchmickiBerkshires Columnist

Income inequality between the sexes in this country has always been a problem and it does not appear to be getting any better. Critics argue that much of the blame lies in the choices many women make in pursuing their education and career goals. I beg to differ.

In my last column on the subject two weeks ago, I observed that the pay differential between men and women had finally caught the attention of national politics. The National Budget Office, for example, pointed out the biggest beneficiary of a minimum-wage increase would be women.  It is true but the real core of this issue lies elsewhere.

As most readers are aware, American society has changed. As a result of the overall income inequality in this country over the last 30-plus years, most couples are required to work full time in order to make ends meet.  Women have also spent decades fighting for that right to work on equal footing with men. Why is it, therefore, that when two people get married, pursue equal professional careers, and decide to raise children, it is the wife who is expected to sacrifice her career, take time away from the workforce and forgo income and advancement?

Who says this is the way it should be?

For me, this is the main obstacle that women face in this country. This expectation that women are required to be the primary caregivers in our society is the root cause of gender income inequality. It is an expectation so prevalent among us that only the strongest of 21st century women even question its fairness.

When a woman is expected to quit her job and raise children, several things occur. Her professional career is interrupted, sometimes for many years. Think of the "Good Wife's" Alicia Florrick, for example. This fictional lawyer dropped out of her legal profession for 13 years to raise children. In the meantime, her philandering husband cheats on her and then goes to prison. In order to support her family, she had to beg and plead simply to be offered a paralegal position at a Chicago law firm.

During those child-raising years, she did not contribute to Social Security a 401(k) plan or IRA, failed to keep up with her competition (mostly male lawyers), and when she did get a job it was at a salary far below what she should have been making if she, instead of her husband, had raised the children. What's more, from her employer's point of view, why pay her more since who's to say she doesn't take another leave of absence if she gets pregnant again?

Unfortunately in America, there is more fact than fiction in this television tale. The divorce rates in the U.S. are 40 percent to 50 percent and guess who ends up with the kids the majority of time? So not only have women given up a career, income and economic advancement, but a vast number of them now are required to support the kids while the ex goes off to prison or to enjoy his professional success with someone younger.

But let's say you are one of the lucky ones with a happy marriage. Whether you like it or not, with the kids grown, you probably still need to go back to work to make ends meet in this economy. But the chances of getting more than the minimum wage job are slim at best. It explains why women represent more than 62 percent of minimum wage workers.

Many of these women are divorced, have children to support or, just as important, they are widowed. You might find it surprising to discover that more than 75 percent of women in this country are widowed at an average age of 56. One in four of these women are broke within two months of being widowed, according to the National Center for Women and Retirement Research. More often than not, their only avenue of support is low-paying jobs with no future.

We haven't even examined the other side of women's role as caregivers to aging parents. It is the woman, once again, who is expected to provide economic and social support for aging parents at the expense of saving for retirement, Social Security benefits and income generation.

So it appears that blaming women for the choices they make as an explanation for gender income inequality would be laughable if the present state of inequity were not so serious. The solution to this injustice goes far beyond raising the minimum wage, but at least it would be a step in the right direction.

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.

     

Support Local News

We show up at hurricanes, budget meetings, high school games, accidents, fires and community events. We show up at celebrations and tragedies and everything in between. We show up so our readers can learn about pivotal events that affect their communities and their lives.

How important is local news to you? You can support independent, unbiased journalism and help iBerkshires grow for as a little as the cost of a cup of coffee a week.

News Headlines
Scoil Rince Bréifne Ó Ruairc Participated in North American Open Championships
Pittsfield Police Participating in US 20 Speed Enforcement Project
MassDOT Project Will Affect Traffic Near BMC
Dalton ADA Committee Explores Expanding
Milne Public Library Trustees Announce New Library Director
Clark Art Presents Free Thematic Tour on Music in Art
BCC, Mill Town Partner to Support Philanthropy Through 40 Under Forty
SVMC' Wellness Connection: March 15
Pittsfield Community Meeting On Rest of the River Project
Slavic Easter Egg Decorating At Ventfort Hall
 
 


Categories:
@theMarket (480)
Independent Investor (451)
Retired Investor (183)
Archives:
March 2024 (5)
March 2023 (4)
February 2024 (8)
January 2024 (8)
December 2023 (9)
November 2023 (5)
October 2023 (7)
September 2023 (8)
August 2023 (7)
July 2023 (7)
June 2023 (8)
May 2023 (8)
April 2023 (8)
Tags:
Japan Interest Rates Debt Ceiling Currency Recession Employment Stocks Debt Rally Greece Fiscal Cliff Energy Retirement Bailout Banks Stock Market Euro Election Europe Jobs Markets Economy Pullback Selloff Crisis Commodities Taxes Europe Federal Reserve Metals Congress Deficit Stimulus Banking Oil
Popular Entries:
The Independent Investor: Don't Fight the Fed
Independent Investor: Europe's Banking Crisis
@theMarket: Let the Good Times Roll
The Independent Investor: Japan — The Sun Is Beginning to Rise
Independent Investor: Enough Already!
@theMarket: Let Silver Be A Lesson
Independent Investor: What To Expect After a Waterfall Decline
@theMarket: One Down, One to Go
@theMarket: 707 Days
The Independent Investor: And Now For That Deficit
Recent Entries:
@theMarket: Sticky Inflation Slows Market Advance
The Retired Investor: Eating Out Not What It Used to Be
@theMarket: Markets March to New Highs (Again)
The Retired Investor: Companies Dropping Degree Requirements
@theMarket: Tech Takes Break as Other Sectors Play Catch-up
The Retired Investor: The Economics of Taylor Swift
@theMarket: Nvidia Leads Markets to Record Highs
The Retired Investor: The Chocolate Crisis, or Where Is Willie Wonka When You Need Him
The Retired Investor: Auto Insurance Premiums Keep Rising
@theMarket: Melt-up in Markets Fueled by Momentum