For several years now it has been an established fact that, as behavioral finance economists Brad Barber and Terrance Odean memorably demonstrated in 2001, of all the factors that might correlate with overconfident investment in financial markets—age, marital status, and the like—the most obvious culprit was having a Y chromosome. And now it turns out that not only did the macho men of the heavily male-dominated global finance sector create the conditions for global economic collapse, but they were aided and abetted by their mostly male counterparts in government whose policies, whether consciously or not, acted to artificially prop up macho.
One such example is the housing bubble, which has now exploded most violently in the West. That bubble actually represented an economic policy that disguised the declining prospects of blue-collar men. In the United States, the booming construction sector generated relatively high-paying jobs for the relatively less-skilled men who made up 97.5 percent of its workforce—$814 a week on average. By contrast, female-dominated jobs in healthcare support pay $510 a week, while retail jobs pay about $690 weekly. The housing bubble created nearly 3 million more jobs in residential construction than would have existed otherwise, according to the U.S. Bureau of Labor Statistics. Other, mostly male-dominated, industries, such as real estate, cement production, truck transport, and architecture, saw big employment gains as well. These handsome construction wages allowed men to maintain an economic edge over women. When policymakers are asked why they didn’t act to stem the housing bubble’s inflation, they invariably cite the fact that the housing sector was a powerful driver of employment. Indeed, subsidizing macho had all kinds of benefits, and to puncture the housing bubble would have been political suicide.
And yet, the housing bubble is just the latest in a long string of efforts to prop up macho, the most powerful of which was the New Deal, as historian Gwendolyn Mink has argued. At the height of the Great Depression in 1933, 15 million Americans were unemployed out of a workforce that was roughly 75 percent male. This undermined the male breadwinner model of the family, and there was tremendous pressure to bring it back. The New Deal did just that by focusing on job creation for men. Insulating women from the market by keeping them in the home became a mark of status for men—a goal most fully realized in the postwar nuclear family (Rosie the Riveter was a blip). In this way, according to historian Stephanie Coontz, the Great Depression and the New Deal reinforced traditional gender roles: Women were promised economic security in exchange for the state’s entrenchment of male economic power.
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