The “Good Mother Thesis” is undoubtedly an important economic concept that shows the gender differences in respect to the pattern of consumption expenditures. It establishes that women have a tendency of spending more on household needs and children. Consequently, that the expenditure patterns by men is typically skewed towards leisure commodities such as alcohol, tobacco, entertainment among others. Nevertheless, in a social environment that is characterized by economic insecurity and uncertainty, it is not surprising that the women save and also invest in their children. However, their male counterparts channel their expenditures to less important issues. Therefore, the expenditures of women can be said to enhance capabilities that are directly productive while the men’s expenditure are channeled to “unproductive” uses. Gender inequalities existing in the distribution of income and wealth together with the male biases present in the legal and institutional structure of the economy impacts on the way the macro-economy functions.
According to the World Bank report (2012) Economic growth, undoubtedly promotes the exercise of women’s agencies through: increasing the women’s autonomous incomes and economic opportunities, removing financial constraints. Economic growth, therefore, allows women greater access to various economic opportunities hence increased income. Greater household wealth is crucial since it reduces the need for girls to indulge in early marriages. Girls and women from richer households have a tendency of marrying later on and hence focus more on their studies.
The Policies or Laws I would propose
Various policies need to be incorporated in order to resolve the issues arising as a result of gender differences. There is, therefore, need to undertake a gender analysis in order to identify existing gender gaps. Governments should adopt economic policies that promote sustainable gender equities hence ensure economic development. The policies must be such that they can address the particular disadvantages experienced by women in all sectors of the economy. In taxation, there is a need to exempt taxes on the basic commodities and also lower taxes on other household commodities. It is because the women’s expenditure is mainly based on the household commodities hence lowering taxes on these commodities will enable women to save. Also, earmarking revenues to be reinvested in the areas that increase female productivity is imperative. It will encourage the women to participate in the most productive sectors of the economy. Strict child laws should also be enacted in order to ensure that both the parents equally contribute to the child’s upbringing hence the duty of providing for the children should not be the women’s reserve.
There is also need for affirmative action that will ensure that the unemployment levels among women decreases. Women should be incorporated in the labor market alongside their male counterparts in order for them to increase their incomes. Strict divorce laws also need to be enacted that will ensure justice and fairness. For Example, A woman strives to work hard alongside her husband and succeeds to accumulate wealth. Unfortunately, when they eventually divorce, the man collects all the wealth. Alternatively, the man may decline to take up the responsibility of the children one’s they divorce. Therefore, it is indeed important to have laws that protect the women from such injustices. Subsequently, economic forums that seek to empower women should also be provided. For example, Some women lack knowledge concerning the viable economic opportunities. Women can be enlightened about the existing market trends and also advised to invest in shares. Also, women need to be encouraged to obtain loans from financial institutions and use it to start their business ventures. Additionally, in order to alleviate poverty, compulsory laws must be established that ensures that every child attains education. It is because education is the surest way out of poverty. Reduced poverty levels mean an increase in the country’s GDP (Gross Domestic Product).
Impacts of the proposed changes on the people's well-being
The changes proposed will certainly improve the well-being of the children and also enhances the economic growth rate in the long-run. Reduction of taxes in the household commodities is important since most of the women’s expenditure is on household commodities. The women will be able to buy the goods at a much cheaper price hence increase their incomes. This initiative will enable the women to improve their living standards as well as that of their children. The Child laws enacted will ensure that the men spend in their families hence this will reduce the burden on women. The women will be able to increase their saving rate hence realize increased investments. Additionally, incorporating women into the labor market will allow the increase their money in their pockets hence lower their poverty levels. They will be able to acquire monies that will allow them educate their children. Strict divorce laws that protect the women and children seek to empower women hence enabling them to increase their potential. Women empowerment helps to reduce the poverty levels. Increased GDP is important because it reduces the inflation rate hence the general price of products reduces and the cost of living is more affordable. The general increase in productivity will enable the country to import less and export more hence a favorable balance of payment equilibrium will be realized. Thus, the general living standards of the women, children and men will improve.