The Tesla Gigafactory in Austin, Texas, US, on Thursday, June 23, 2022. Elon Musk said Tesla Inc.'s new plants in Germany and Texas are losing "billions of dollars" as the electric-vehicle maker tries to ramp up production.
But the fall of Roe may eventually become a deterrent.
Cutting access to health care may pose challenges to businesses recruiting talent to the state, according to Shea Cuthbertson, president elect of Austin Women in Technology, a nonprofit networking organization. The state laws will add a financial burden on employers offering travel for care -- something startups can hardly afford, she said.
“The bottom line is that restrictive health-care policies significantly hurt people and will have a negative impact on the technology sector in Texas,” Cuthbertson said by email. “Ultimately, this will take away from diversity of thought, innovation, and equity in the workplace.”
The appeal of states like Texas may erode over time, according to Mark Zandi, chief economist at Moody’s Analytics.
“The overturn of Roe may also result in many smaller, but important, hard-to-see economic consequences,” Zandi said. Colleges in states that ban abortion could see fewer applicants from the rest of the country and world, who tend to be more socially liberal, he said.
Rising Inequality
Economists say bans will disproportionately hurt lower-income groups and minorities.
Professionals working for corporate giants like JPMorgan Chase & Co. or Walt Disney Co. will get travel expenses covered if they need out-of-state abortions -- at least until states try to outlaw the practice. But the majority of women living in states with severe restrictions or bans don’t work for companies that provide that benefit -- and Medicaid in most states doesn’t cover abortion.
Research shows that women forced to carry a child to term are four times as likely to live below the poverty line even years after the birth. They tend to have lower wages later in life. About 40% of Texas residents are Hispanic and the state has one of the biggest median-income gaps between White and Hispanic residents.
“There will be a negative macroeconomic effect,” said Sarah Miller, assistant professor of business economics and public policy at the University of Michigan’s Ross School of Business.
Miller was among more than 150 economists who submitted an amicus brief to the Supreme Court arguing to uphold Roe v. Wade, saying that access to reproductive care had a positive effect on women’s overall lives.
“This is going to increase inequality -- we’re already seeing it,” she said.
-With assistance from Steve Matthews and Alex Tanzi.
This article was provided by Bloomberg News.