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Writer's pictureJoeziel Vazquez

Why the Equal Rights Amendment is Crucial for America's Economic Future in 2025: A Financial Industry Perspective

By Joeziel Joey Vazquez-Davila, CEO of Credlocity

Opinion

As we begin 2025, our nation stands at a historic crossroads in the fight for economic equality and constitutional rights. The Equal Rights Amendment (ERA) represents not just a milestone for social justice, but a fundamental foundation for building a stronger, more equitable economy that benefits all consumers, businesses, and financial institutions. As the CEO of Credlocity, a company dedicated to helping Americans achieve financial stability through credit repair, I've observed firsthand how the lack of constitutional protection against gender-based discrimination creates lasting economic disparities that affect our entire financial system.


Statute of liberty with a quoted text saying: "Equal Rights Amendment It's Time!"

The Historical Journey of the ERA

The story of the ERA begins with Alice Paul, a Quaker suffragist from Mt. Laurel, New Jersey, who spent three years meticulously drafting the amendment starting in 1920. That same year, as women finally secured their right to vote through the 19th Amendment, Paul and her colleagues at the National Women's Party conducted a groundbreaking national study on women's legal status. Their findings revealed a stark truth: despite newly won voting rights, women across the country faced systematic economic and legal discrimination.

The amendment's journey through Congress spans nearly a century. First introduced in 1923 by Republican Congressman Daniel Anthony, the ERA received consistent bipartisan support, becoming a plank in the Republican Party platform by 1940. This historical context demonstrates that economic equality transcends political divisions and speaks to core American values of fairness and opportunity.

Understanding the ERA's Core Promise

The ERA's fundamental principle is elegantly simple yet profoundly impactful: "Equality of rights under the law shall not be denied or abridged by the United States or by any State on account of sex." This single sentence has the power to transform our economic landscape and ensure fair financial opportunities for all Americans.

The Legal Framework: Why Constitutional Protection Matters

The legal case for implementing the ERA is robust and clear. Article V of the Constitution establishes two requirements for amending our founding document:

  1. A two-thirds vote from Congress

  2. Ratification by three-quarters of states (38 states)

Both requirements have been met. Virginia's historic vote in 2020 provided the crucial 38th state ratification, fulfilling all constitutional requirements. The American Bar Association has thoroughly examined the legal implications and affirmed both the ERA's ratification and the unconstitutionality of the 1972 time limit.

The Current Legal Landscape

While existing laws like the Equal Credit Opportunity Act and Fair Housing Act provide some protections against discrimination, these legislative safeguards can be modified or repealed by simple majority votes. Constitutional protection would provide a permanent foundation for economic equality that transcends political shifts.

The Economic Impact of Gender Discrimination: A Deep Dive

In my years leading Credlocity and working within the financial services industry, we've documented numerous ways gender-based discrimination creates economic inefficiencies and market distortions:

Credit Access and Building Credit History

  • Women face unique challenges in building credit histories during career interruptions for caregiving

  • Traditional credit scoring models often fail to account for gender-specific earning patterns

  • Self-employed women and women business owners face higher hurdles in credit applications

  • Gender bias in lending decisions creates artificial market inefficiencies

Housing and Property Rights

  • Discriminatory lending practices affect housing access and homeownership rates

  • Property appreciation rates can vary based on owner gender demographics

  • Rental market discrimination impacts housing stability and credit building

  • Mortgage qualification criteria can perpetuate historical inequities

Business and Entrepreneurship

  • Women-owned businesses face higher loan rejection rates

  • Interest rates often vary by gender even with identical business metrics

  • Venture capital and investment funding show significant gender gaps

  • Contract and procurement opportunities remain unequal

Long-term Financial Security

  • Retirement savings disparities create economic vulnerabilities

  • Insurance coverage and rates can reflect gender bias

  • Investment product access and advice quality often varies by gender

  • Wealth building opportunities face systematic barriers

The Macroeconomic Case for the ERA

The implementation of the ERA would strengthen our economy through multiple channels:

Market Efficiency

  • Reduced discrimination leads to more efficient capital allocation

  • Increased competition in lending markets improves overall market function

  • Better talent utilization drives innovation and productivity

  • Reduced market distortions improve economic outcomes

Consumer Confidence and Spending

  • Equal legal protection enhances consumer confidence

  • Reduced discrimination risk encourages market participation

  • Stable legal framework supports long-term financial planning

  • Increased economic participation drives growth

Business Innovation and Growth

  • Expanded talent pool for leadership positions

  • More diverse decision-making improves business outcomes

  • Reduced legal uncertainty encourages investment

  • Equal access to capital drives business formation

Real-World Impact: Stories from the Credit Industry

At Credlocity, we regularly witness how the lack of constitutional protection affects real people:

Case Study 1: Small Business Lending A female entrepreneur with identical qualifications to male counterparts consistently faces higher interest rates and stricter lending requirements, limiting business growth potential.

Case Study 2: Credit Rehabilitation Women returning to the workforce after caregiving gaps face unique challenges in rebuilding credit, despite strong current income and stability.

Case Study 3: Property Investment Female real estate investors report systematic differences in lending terms and property appraisals, affecting portfolio building opportunities.

The Technology and Innovation Perspective

In today's digital economy, algorithmic bias in credit scoring and lending decisions can amplify historical discrimination. Constitutional protection would require:

  • Regular audit of AI and machine learning models for gender bias

  • Development of more equitable credit scoring systems

  • Innovation in financial product design and delivery

  • Technology-enabled solutions for fair lending

Global Economic Competitiveness

Countries with stronger gender equality protections consistently show:

  • Higher GDP growth rates

  • Increased innovation metrics

  • More stable financial markets

  • Better long-term economic outcomes

A Call to Action

The economic stakes couldn't be higher. As we've seen through our work at Credlocity, financial opportunity should be based on merit, not gender. The ERA would enshrine this principle in our highest law.

An Urgent Appeal to President Biden



President Biden has a historic opportunity before his term ends. With one directive to National Archivist Colleen Shogan, he can complete the ratification process for an amendment that has already met its constitutional requirements. As Rep. Cori Bush emphasized, "The publication of the Equal Rights Amendment may be long overdue, but the stakes for gender equality have never been higher."

More than 120 House Democrats have recently urged immediate action, recognizing that this moment represents a crucial opportunity to strengthen our economy through constitutional equality. As Bush powerfully stated, "The ERA is one sentence that has the power to protect our future."

The Path Forward: Economic Growth Through Constitutional Equality

The implementation of the ERA would create a more robust and resilient economy by:

  1. Strengthening legal frameworks for fair lending

  2. Increasing workforce participation and innovation

  3. Enhancing consumer confidence and spending power

  4. Creating more stable household finances

  5. Improving credit outcomes across demographics

  6. Driving business formation and growth

  7. Reducing market inefficiencies

  8. Supporting long-term economic planning

Conclusion: A Historic Opportunity

The path forward is clear. President Biden can make history with a single phone call, directing the National Archivist to certify and publish the already-ratified ERA. This action would strengthen our economy and ensure equal financial opportunities for all Americans.

The time for action is now. Our economic future depends on ensuring that all Americans have equal rights under the law. Let's make 2025 the year we finally enshrine this fundamental principle in our Constitution and unlock the full potential of our economy.


 

Joeziel Joey Vazquez-Davila is the CEO of Credlocity, a leading credit repair company dedicated to helping Americans achieve financial stability through ethical credit restoration services. With years of experience in the financial services industry, Vazquez-Davila advocates for economic equality and fair credit practices.


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