Treasury Sec. Yellen says reversing Roe v. Wade would have 'damaging effects on the economy'

WASHINGTON — If the Supreme Court issues a ruling overturning the 1973 landmark Roe v. Wade decision, it would have a devastating effect on the economy, Treasury Secretary Janet Yellen warned members of Congress on Tuesday.

During a Senate Banking Committee hearing about a financial report on the U.S. economy, Sen. Robert Menendez, D-N.J., asked what a reversal of the ruling would mean economically for the country.

"I believe that eliminating the right of women to make decisions about when and whether to have children would have very damaging effects on the economy and would set women back decades," said Yellen, the first woman to serve as treasury secretary.

Roe v. Wade and access to reproductive health care services, including abortion, has helped lead to increased labor force participation, she said.

"It enabled many women to finish school," she said, according to a transcript. "That increased their earning potential. It allowed women to plan and balance their families and careers. And research also shows that it had a favorable impact on the well-being and earnings of children."

Yellen said many research studies have shown that denying women access to abortions "increases their odds of living in poverty or need for public assistance." Menendez said that according to the Institute for Women's Policy Research, current abortion restrictions at the state level cost the U.S. about $105 billion each year.

Her comments touched a nerve with Sen. Tim Scott, R-S.C., who asked during his line of questioning whether she meant that "ending the life of a child is good for the labor force participation rate?"

"I think people can disagree on the issue of being pro-life or, or pro-abortion, but in the end, I think framing it in the context of labor force participation is, it just feels callous to me," Scott said. "I think finding a way to have a debate around abortion in a meeting for the economic stability of our country is harsh."

Yellen defended her remarks, saying the debate is about whether women have the ability to control their reproductive situation to allow them to have a satisfying life.

"In many cases, abortions are of teenage women, particularly low income and often Black, who aren’t in a position to be able to care for children, have unexpected pregnancies, and it deprives them of the ability often to continue their education, to later participate in the workforce," she said.

"So there is a spillover into labor force participation but — and it means the children will grow up in poverty and do worse themselves," she said. "This is not harsh. This is the truth."

Yellen's comments come a week after a leaked Supreme Court draft opinion indicated a majority of justices would reverse Roe v. Wade, with a final decision expected in either June or July.