Is Legalizing Gay Marriage a Minnesota Jobs Program?

Governor Mark Dayton used his State of the State Address last night to endorse legalizing gay marriage in Minnesota.   And right on cue, Rep. Greg Davids (R-Preston) took the Republicans’ most predictable jab:

 “He’d rather talk about gays getting married instead of getting Minnesotans jobs that could provide for their families.”

We’re going to be hearing a lot more of that claim from Republicans in the weeks to come, so the argument merits dissection.

Forget for a moment that Davids’ party repeatedly beat down Governor Dayton’s  job-creating bonding proposals when it controlled the Legislature.  Forget that Dayton’s 2013 budget proposal includes several items designed to create jobs:

  • $86 million in low-interest loans for businesses relocating to Minnesota;
  • $25 million for a Minnesota Job Creation Fund;
  • $30 million in transportation and housing spending linked to economic development;
  • A Vikings stadium that will put about 13,000 Minnesotans to work; and
  • A more stable tax system to make our economy more bullet proof during downturns.

Forget about all that for a moment.

Instead, let’s take a look at whether there is any direct connection between legalizing gay marriage and creating and retaining Minnesota jobs. A 2012 article from CNNMoney sheds some light on this question:

 Since gay marriage was legalized in New York state a year ago, marriage license fees, local celebrations and wedding-related purchases have boosted New York City’s economy by $259 million, Mayor Michael Bloomberg and City Council Speaker Christine Quinn announced Tuesday.

“Marriage equality has made our City more open, inclusive and free — and it has also helped to create jobs and support our economy,” Mayor Bloomberg said in a statement.

More than 8,200 same-sex marriage licenses have been issued over the past year, representing more than 10% of the 75,000 licenses issued in the city, according to a survey conducted by the City Clerk’s Office and NYC & Company, the city’s tourism and marketing organization.

The city collected $16 million in tax revenue from same-sex marriages over the past year. But weddings brought the biggest economic boost to the city, with about 67% of same-sex couples who got married in the city holding wedding receptions at venues like hotels, restaurants and catering halls throughout New York City’s five boroughs.

Same-sex couples spent an average $9,039 on their weddings, while 31% spent $10,000 or more — though that’s still not as high as the $27,021 that the average couple spends on a wedding, according to a national survey of gay and straight newlyweds from TheKnot.com.

More than 200,000 guests flocked to New York City from other parts of the state or country to partake in the celebrations. Hotels booked nearly 236,000 nights at an average rate of $275 per night. More than 40,000 wedding announcements were printed, and couples bought 47,445 wedding favors, the economic impact survey found.

Of course, in addition to the beginning we also have to consider the end.  That is, many a heterosexual can tell you that what naturally follows many weddings is divorce, and it can sometimes cost more to get out of a marriage than it costs to get into one.  Though an expansion of divorce is an unfortunate consequence of an expanded definition of marriage, divorce proceedings do generate additional economic activity.

It should be noted that Minnesota is not as populous as New York, so we would not see economic benefits anything like the New York benefits.  More to the point, equality and fairness are the more meaningful reasons Minnesota needs to legalize same-sex marriage as soon as possible, not job creation.

Still, a look at what is happening in other states with newly legalized same-sex weddings shows that the Republicans’ asssertion that same-sex marriage would have no positive impact on jobs in Minnesota is every bit as silly as their other arguments against same-sex marriage.

– Loveland

Note:  This post was also featured in Politics in Minnesota’s Best of the Blogs.