Lavish Weddings Are Good For The Economy

The state should actually welcome lavish weddings, for they pump money back into the economy, and provide employment to people in associated industries, from catering to decor to entertainment to transport. Not only would a tax on wedding expenses disincentivise such expenditure, but it would inevitably find its way back into the economy far less inefficiently than had it simply been spent by the people paying it.

Amit Varma at The Indian Economy Blog critisizes the Kerala assembly’s proposed move to restrict lavish weddings. Read the comments for an interesting discussion.