Economic Insecurity

Harry Markowitz’s 1952 essay Portfolio Theory broke new ground in developing ways to diversify financial portfolios. By the time he won the Nobel Prize nearly four decades later, countless financial innovations to help spread risk had been introduced, making the risks associated with investing more acceptable -- particularly to the American middle class. Sure the markets are taking a hit now, but those with diversified portfolios are certain to weather this downturn better than those without.

U.S. economic public policy would… more

When pets are poisoned by imported pet food or U.S. attorneys are fired under suspicious circumstances, Congress gears up hearings and vows quick action. A far greater scandal, however, has hardly gained the interest of legislators or the presidential candidates. That is the increasing wealth gap between the rich, the middle class and the poor, which is reaching alarming proportions.

The top 10% of income earners in the United States now owns 70% of the wealth, and the wealthiest 1% owns… more

Why aren’t Republican presidential candidates talking more about job training?

Wherever they go on the campaign trail, candidates are asked about off-shoring, layoffs, and wages. Despite the strong U.S. economy and near full employment, middle class anxiety is real.

Hardly a day goes by that some Democratic candidate doesn’t speak about the struggles of the middle class family in the age of globalization.Democrats campaigned last November on responding to working family angst through a minimum wage increase. Republicans often respond… more

Many Americans appear to be doing fine. They’ve got nice cars. They’ve got good jobs. They’ve got families. But they also have an abysmal savings profile and mountains of debt. The slightest disruption — a job loss or health incident — can and does destroy the perceived image of American middle class harmony. In “The Great Risk Shift,” author Jacob Hacker details how beneath the shiny hardwood flooring of America’s middle class… more

You may remember the ruckus that arose a couple of years ago when a local Spanish-language television station, Channel 62, put up a billboard publicizing its newscasts. Next to the words "Los Angeles," the abbreviation "CA" was crossed out and "Mexico" written in its stead.

Many reacted angrily, saying the sign was glorifying illegal immigration. Others accused the complainers of being racist xenophobes and maintained that the ad was simply celebrating the region’s Latino flavor.

Whatever you thought of the promotion, I’m… more

Three weeks ago, 39-year-old Hyang Sun Lee of Fullerton allegedly tried to set her three children and husband ablaze after she doused them with lighter fluid while they slept. Though she didn’t succeed, police said, within the last year, three other Korean immigrant parents in Southern California did.

News reports invariably point to economic hardship and the difficulties of immigrant adjustment as the source of the parents’ despair. And clearly they were factors. But real answers to these incidents are more… more

Lindsay, Calif. -- The immigration debate can get pretty sloppy and emotional in the abstract, but not here in this Central Valley town that can’t afford to let simplistic rhetoric overshadow facts. Last month’s devastating citrus freeze has put Lindsay, population 11,185, in dire economic straits; but its pragmatic response to the crisis sets an example for the rest of the nation.

The packing houses here in the heart of California’s citrus belt are generally hopping the first week of February.… more

Thank you, Mr. Chairman. My name is Jacob Hacker, and I am a professor of political science at Yale University. I thank the committee for the honor of speaking today about the economic condition of the American middle class.

Without mincing words, that condition can be described as “serious and unstable.” Increasingly, middle-class Americans find themselves on a shaky financial tightrope, without an adequate safety net if they lose their footing.

A major cause of this precariousness… more

SEATTLE & SAN FRANCISCO -- The new Democratic-led Congress has already made great strides on its ambitious legislative agenda. From hiking the minimum wage to cutting interest rates on student loans, Democrats have won impressive bipartisan support for their legislative goals.

Not included on the agenda, however, is any proposal designed to address what may be the most fundamental problem facing America right now: an alarmingly high degree of inequality.

Currently the top 10 percent of income earners in the US own… more

Over the past generation, the economic risks American families face have increased substantially. Yet public programs have largely failed to adapt to these new and newly intensified risks, and private workplace benefits have eroded. As a result, Americans increasingly find themselves on an economic tightrope, without an adequate safety net if, as is ever more likely, they lose their footing. This tightrope both creates anxiety about the future and causes hardship when families do lose their balance. But importantly, it… more