Introduction
In "Dollars and Sex," Marina Adshade explores the fascinating intersection of economics and human relationships. The book challenges our romantic notions about love and sex, revealing how economic principles shape our most intimate decisions. By examining various aspects of relationships through an economic lens, Adshade provides insights into why we behave the way we do in matters of the heart.
The Economics of Female Sexuality
Liberation through Financial Independence
One of the most significant changes in recent history has been the liberation of female sexuality. Adshade argues that this shift is closely tied to economic factors. As women have gained financial independence, they've also gained more control over their sexual choices.
In the past, unmarried women who engaged in sexual relationships with multiple partners faced severe social consequences. They were often shamed and their reputations ruined. However, today's educated and financially independent women have more freedom to make their own sexual choices without fear of social ostracism.
This newfound freedom is largely due to women's increased earning power. Modern women can afford to buy contraceptives, insist on their proper use, and even raise a child on their own if they choose to. The financial risks associated with premarital sex have significantly decreased, leading to more sexual freedom for women.
The Paradox of Contraception and Pregnancy Rates
Interestingly, the introduction of reliable contraceptives like birth control pills hasn't led to a decrease in premarital pregnancies. In fact, premarital birth rates have increased over the years. Adshade explains this paradox through economic reasoning.
In 1925, an unmarried woman had an 85% chance of getting pregnant from unprotected sex. The potential cost of this pregnancy was enormous, both socially and financially. Using a simple economic calculation, Adshade illustrates that the potential cost of premarital sex in 1925 was about $38,250 (based on a lifetime income of $45,000).
With the introduction of contraceptives, the probability of pregnancy dropped significantly. This reduction in risk, combined with changing cultural attitudes, made people more willing to engage in premarital sex. As more people became sexually active before marriage, the overall number of pregnancies increased, even though the risk for each individual encounter decreased.
The College Sex Market
Supply and Demand on Campus
Adshade applies the economic principle of supply and demand to explain sexual behavior on college campuses. She notes that heterosexual male students have a better chance of having sex before graduation if they attend a college with a higher female population.
This is because colleges have become a "buyer's market" for heterosexual male students. As the number of female students increases, the competition among women drives down the "price" of sexual intimacy. Women may be more willing to lower their standards or become sexually active earlier to compete in this market.
Studies show that on predominantly male campuses, a female student has a 45% chance of keeping her virginity. However, this drops to just 30% on campuses where women outnumber men. This demonstrates how market forces can influence sexual behavior and attitudes.
The Pitfalls of Online Dating
Creating Thin Markets
Online dating sites, despite their vast user bases, often create what economists call "thin markets." These are markets where it's difficult to find suitable matches due to overly restrictive criteria.
Many dating sites ask users to specify preferences for attributes like age, height, and income. While these seem like reasonable filters, they can dramatically shrink the pool of potential matches. Two people who might be perfect for each other could miss out on connecting simply because one of them is an inch shorter than the other's stated preference.
Adshade argues that this approach to online dating is flawed. It emphasizes quantitative data over more important experiential criteria, such as sense of humor or shared interests. She suggests that dating sites should focus more on these qualitative aspects to create healthier, more effective marketplaces for love.
The Economics of Marriage
Marriage as a Business Partnership
Adshade presents an interesting perspective on marriage, comparing it to a business partnership. From an economic standpoint, marriage makes sense because it allows two people to maintain a household more efficiently than they could individually.
A household, like a business, has various demands that need to be met. These include cleaning, laundry, bill-paying, grocery shopping, and more. When two people with complementary skills come together in marriage, they can divide these tasks according to their strengths, leading to a more efficient household.
This economic view of marriage extends to the bedroom as well. Adshade argues that sex can be considered both a "good" that individuals need and a "service" that marriage provides efficiently. By including sex within the marriage, couples save time and effort that would otherwise be spent seeking sexual partners in the dating market. It also reduces risks associated with casual dating or illegal sex markets.
Studies support this view, showing that married people have sex more frequently than unmarried individuals. According to research, 76% of married people have sex two to three times per month, compared to only 57% of unmarried people.
The Decline of Polygamy
Adshade uses economic reasoning to explain the prevalence of polygamy in some societies and its decline in others. In societies where there's a significant wealth disparity, it can make economic sense for a woman to become the second or third wife of a wealthy man rather than the only wife of a poor man.
However, as societies become more industrialized and educated, polygamy tends to decline. This is because the economic benefits of having multiple wives decrease, while the value of having an educated wife increases.
After the Industrial Revolution, it became more advantageous for men to have a few well-educated children who could succeed in urban jobs, rather than many children needed for farm labor. To produce smart children, men needed educated wives. This increased demand for educated women gave them more power in the marriage market and reduced the appeal of polygamy.
As women gained education and financial independence, they no longer needed to resort to becoming someone's second or third wife for economic security. They could choose to marry for love, even if their partner wasn't wealthy, or remain single if they preferred.
Divorce and Economic Factors
Education, Income, and Divorce Rates
Contrary to popular belief, love isn't the only factor that keeps marriages together. Adshade presents compelling evidence that education and income play crucial roles in marital stability.
Research shows a strong correlation between education levels and divorce rates. Those with postgraduate degrees have only a 3% chance of getting divorced, while those with high school diplomas have a 16% chance. This isn't because highly educated people are better at choosing partners or maintaining relationships. Rather, it's because they typically earn more money.
Financial stability is a key factor in marital happiness. When couples face economic hardship, it creates stress that can tear a marriage apart. Couples may need to work longer hours, leaving less time for their relationship. The constant worry about money can lead to arguments and resentment.
Income Inequality and Divorce
Adshade also explores how income inequality within a society affects divorce rates. In communities where income disparities are high, families may feel pressure to keep up with their wealthier neighbors. This can lead to overspending, debt, and financial stress, all of which can strain a marriage.
Research by economists Adam Levine, Robert Frank, and Oege Dijk shows a strong link between a country's level of income inequality and its divorce rate. They found that a 1% increase in financial inequality leads to a 1.2% increase in the divorce rate.
This suggests that as wealth becomes concentrated in the hands of a few, marriages among the less financially fortunate suffer. The stress of trying to keep up with societal expectations, combined with the reality of financial struggles, can put immense pressure on relationships.
The Evolution of Sexual Attitudes
Changing Norms and Economic Factors
Adshade traces how sexual attitudes have evolved over time, linking these changes to economic factors. She notes that today's generation is generally more liberal in their views on sexuality compared to their grandparents' generation.
This shift towards more permissive attitudes is partly due to economic changes. As contraception became more affordable and widely available, the risks associated with sexual activity decreased. This allowed people, especially women, to be more sexually active without fear of unwanted pregnancies or social stigma.
Moreover, as women gained economic independence, they were better able to support themselves and their children, reducing the social and financial risks of premarital or extramarital relationships. This economic empowerment has led to more acceptance of diverse sexual behaviors and family structures.
The Gradual Spread of Liberal Attitudes
Adshade explains how these changing attitudes spread through society. It often starts in more liberal areas, where people begin engaging in previously taboo behaviors without facing stigma. As others observe this, they become less fearful of social judgment, and the more liberal attitude gradually prevails.
This process is accelerated by economic factors. As more women enter the workforce and gain financial independence, they have more freedom to make their own choices about relationships and sexuality. This, in turn, influences societal norms and expectations.
The Economics of Casual Relationships
Hook-Up Culture and Market Forces
Adshade applies economic principles to explain the rise of "hook-up culture" on college campuses. She argues that this trend is influenced by the same market forces that govern other aspects of our lives.
In the college "market," there's often an imbalance between the number of men and women. When women outnumber men, it creates a buyer's market for male students. This can lead to a culture where casual hook-ups become more common, as women may feel pressure to lower their expectations to compete for male attention.
However, Adshade notes that this doesn't mean all students are happy with this arrangement. Many may prefer more committed relationships but feel pressured by market forces to participate in hook-up culture.
The Role of Technology
Technology has also played a role in shaping casual relationship markets. Dating apps and social media have made it easier than ever to connect with potential partners, reducing the "search costs" associated with finding sexual or romantic partners.
From an economic perspective, this reduction in search costs should lead to more matches and potentially more satisfaction. However, Adshade points out that it can also lead to a paradox of choice, where having too many options makes it harder to commit to any single partner.
The Future of Relationships
Economic Trends and Their Impact
Adshade speculates on how future economic trends might shape relationships and sexuality. She suggests that as artificial intelligence and automation change the job market, it could have profound effects on how we form and maintain relationships.
For example, if more people work from home or have flexible schedules, it could change how couples meet and spend time together. If income inequality continues to rise, it might lead to more transactional relationships or increase the appeal of polygamous arrangements in some communities.
Adapting to Change
As economic realities shift, Adshade argues that our notions of love and relationships will need to adapt. She suggests that understanding the economic forces at play can help us navigate these changes more effectively.
For instance, recognizing the role of market forces in relationships might help individuals make more informed decisions about their love lives. It could also inform policy decisions related to marriage, divorce, and family planning.
Conclusion
"Dollars and Sex" offers a unique perspective on love and relationships by applying economic principles to these deeply personal aspects of our lives. While it may seem unromantic to view matters of the heart through an economic lens, Adshade's approach provides valuable insights into why we behave the way we do in relationships.
By understanding the economic factors that influence our choices in love and sex, we can make more informed decisions about our relationships. We can recognize how societal changes, technological advancements, and economic conditions shape our attitudes and behaviors.
However, Adshade doesn't suggest that economics can explain everything about love and sex. Human emotions and individual preferences still play a crucial role. The economic perspective is simply another tool we can use to understand these complex aspects of human life.
Ultimately, "Dollars and Sex" challenges us to think critically about our assumptions regarding love, sex, and relationships. It encourages us to consider how external factors, particularly economic ones, influence our most intimate decisions. By doing so, it provides a fresh perspective on age-old questions about human sexuality and romantic relationships.
Whether you're single, in a relationship, or studying human behavior, this book offers valuable insights into the complex interplay between economics and intimacy. It reminds us that even in matters of the heart, we are not immune to the forces of supply and demand, cost-benefit analysis, and market dynamics.
As we navigate the ever-changing landscape of modern relationships, the lessons from "Dollars and Sex" can help us understand ourselves and our partners better. By recognizing the economic underpinnings of our choices, we can make more informed decisions about our love lives and perhaps find greater satisfaction in our relationships.
In a world where the lines between personal and economic life are increasingly blurred, Adshade's work provides a timely and thought-provoking exploration of how money matters in our most intimate moments. It's a reminder that love, for all its mystery and magic, is not exempt from the practical realities of the world we live in.