New America on Ownership and Assets

Easy Access to Our Work and Experts on This Issue

Getting ahead in today's economy depends not just on one's job and income, but increasingly on one's ability to accumulate and utilize assets -- to buy a home, pay for higher education, start a business or save for retirement. Yet more than half of all Americans currently have few or no assets for investment. New America advances innovative policies -- such as a "Homestead Act" for the 21st century that would provide every American child financial assets from birth -- to significantly expand economic opportunity, thereby giving all Americans a personal stake in the overall success of our economy.

New America's recent articles, events, policy papers and press coverage on this topic are available below, as is information on our staff and fellows with expertise in this area. To learn more about New America's ideas, proposals and activities, please see our Asset Building Program home page.

Policy Papers

New America's latest official publications on this issue are featured below.

529s and Public Assistance

529s are tax-advantaged accounts designed to help families save for post-secondary education.  In recent years, state policymakers and 529 administrators have worked to expand access to 529 plans and increase the participation of lower-income families through outreach, advertising, and targeted incentives such as matching deposits and reducing or eliminating fees.[1]  Yet, as plan administrators and state and federal policymakers design new strategies for expanding the use of 529 plans

Rourke O'Brien | November 2009

Low-Cost State Policy Innovations to Help Families Save for College

At a time when low-income students are underrepresented in higher education and the cost of attendance is becoming increasingly unaffordable, 529 college savings plans have the potential to address issues of college readiness, access and completion.  Savings can help reduce higher education debt, making college more affordable, and has the potential to change aspirations and behaviors of both students and their parents. Research from the asset building field shows that even a relatively small amount of savings may have positive impacts on behavior and educational achievement.

Mark Huelsman | November 2009

AutoSave Overview

AutoSave is a unique savings plan that automatically diverts through payroll deduction a small amount of post-tax wages into an individual savings account. This new infrastructure nearly seamlessly enables individuals to contribute small amounts of their wages into an accessible, non tax-advantaged savings account. It will be especially valuable for individuals who have limited liquid assets, and who may otherwise be forced to meet emergency needs with high-cost emergency loans.

Increasing College Completion Among Low-Income Students through Savings

Earlier this year, the Obama Administration released a bold new plan for improving the state of higher education in the United States. Its fiscal year 2010 budget proposal included several items aimed at increasing postsecondary education enrollment and completion rates, and decreasing the financial burden that college represents to many lower and middle class families. [1] These proposals include reforming the federal student loan program, expanding Pell Grants for low-income students, and creating a new College Access and
David Newville, Mark Huelsman | October 2009

Overcoming Account Opening Impediments to the Bank Secrecy Act

There are 40 million persons living in the U.S. who lack a bank account. Many of these "unbanked" individuals lack sufficient identification necessary to meet banks' customer identification verification procedures, which are required by the Bank Secrecy (BSA) and USA PATRIOT Acts. Research shows that insufficient identification is one of the top three reasons for account denial and that customers who are denied a bank account once often do not return to a bank again.

The Passageway Account Proposal

Melissa Koide, Emily Gallagher | September 2009

Savings Policy in the United Kingdom

Asset ownership is seen as having an increasingly influential link to a variety of social outcomes. While the UK has experienced increases in economic wealth and improvements in overall living standards over the past 40 years, trends in asset ownership have reversed. More recently, 15 years of economic stability led to a feeling of increased financial security and individual savings were eroded in a boom of consumerism. The distribution of this increase in wealth has been unequal… more
July 2009

The Assets Report 2009

Asset ownership plays a central role in the economic security of American families and the broader economy. Assets can be deployed productively, such as to pay for a college education, or tapped to help individuals and families weather unexpected events. Additionally, assets have behavioral effects that can change the manner in which people think about and plan for the future.

Reid Cramer | July 2009

The ASPIRE Act of 2009

What does the bill do? Why is a bill to promote asset building for children necessary? Who is eligible? Will illegal immigrants or children who become citizens get accounts? Will children born before the bill takes effect get accounts? Why do wealthy people get these accounts? Why do poor people who don't pay taxes get accounts? Is it unrealistic to expect those with low incomes to save when they already struggle to get by? How
Reid Cramer | June 2009

Banking Development Districts

To promote local economic development, California policymakers should create Banking Development Districts, a proven way to connect lower-income unbanked Californians with the financial products and services they need to enter the financial mainstream and begin to build savings and assets. It is modeled after New York State's successful Banking Development District program.

For the full text of the issue brief, please see the PDF attached below.

Olivia Calderon | May 21, 2009

The Saver's Bonus

What is the Saver's Bonus?

The Saver’s Bonus is a policy proposal that would reward low- and moderate-income individuals and families who save at tax time. Every dollar deposited in a designated savings product would be matched with an additional dollar from the federal government, up to a $500 annual maximum. Participants would make or report contributions to an eligible account on their federal income tax return, and the bonus would then be transferred directly to the designated account. The… more

David Newville | July 2009

California Employee Savings Program Bill Summary

The California Employee Savings Program creates a voluntary, universal, portable retirement account for California workers who do not have access to a workplace retirement savings plan. It would give six million California workers and their families an opportunity to have their own workplace retirement savings plans to supplement their basic Social Security benefits. The California Employee Savings Program would also give hundreds of thousands of California small businesses an easy, low-cost, voluntary way to offer a retirement savings plan to their

Olivia Calderon | May 15, 2009

CA Workforce Mobility and Savings Initiative Bill Summary

The CA Workforce Mobility and Savings Initiative, reforms the asset limit in the California Work Opportunity and Responsibility to Kids (CalWORKs) program, to encourage low-income families to build the savings they need to permanently exit welfare. The measure repeals the $2,000 asset limit in CalWORKs for current recipients and raises it for new applicants from $2,000 to $7,000 while also eliminating the $4,650 vehicle limit. By reforming the asset limit, this measure restores the stated goal of the CalWORKs program by assisting families in achieving

Olivia Calderon | May 15, 2009

Asset Building in California

Overview

The current economic downturn, triggered in part by excessive household debt and deflating housing prices, underscores the central role asset ownership plays in the economic security of California families and the broader economy.  Yet, half of all Americans currently have few or no assets, in part due to policies that encourage savings and wealth accumulation that benefit the upper half of earners.  The purpose of New America's Asset Building Program, is to significantly broaden savings and assets ownership in America,

Olivia Calderon | May 6, 2009

The ASPIRE Act of 2009 Bill Summary

Title of the Bill

The America Saving for Personal Investment, Retirement, and Education Act of 2009 ("The ASPIRE Act of 2009")

Purpose of the Bill 

To encourage savings, promote financial literacy, and expand opportunities for young adults by establishing a Lifetime Savings Account for every newborn child.

Lifetime Savings Accounts

June 2009

Five Low-Cost Federal Policy Ideas to Help Families Save for College

The Potential of 529 College Savings Plans

At a time when low-income students are underrepresented in higher education and the cost of attendance is becoming increasingly unaffordable, 529s have the potential to address issues of college readiness, access and completion.  College savings can help make higher education more affordable, and have the potential to change aspirations and behaviors of both students and their parents.  Research from the asset building field has shown that even a relatively

David Newville, Rourke O'Brien | April 29, 2009

The SAFE-T Account

Over the past two decades, policymakers, academics, and others have pursued an array of policies and strategies to help lower and middle income households build savings and assets and access reasonably-priced financial products at mainstream institutions. While some progress has been made, there have been few advances in delivering a high-value, affordable financial product at scale.

Melissa Koide | April 24, 2009

Savings, Responsibility and Opportunity in America

When President Clinton signed the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, he changed the moral debate over poverty. No longer could Ronald Reagan's heirs wave help-wanted ads and ask sarcastically why those welfare queens couldn't find a job when there were so many to be had. Now everyone was working, training for a job, or looking for one. It was the law, after all. With benefits now linked to work, progressive politicians could have argued for a… more

April 20, 2009

Savings-Linked Conditional Cash Transfers

ABSTRACT: This policy brief makes the case for linking conditional cash transfers to savings as a two-pronged poverty reduction strategy of supplementing income and building productive assets, while increasing effective financial inclusion of a given population. While conditional cash transfer (CCT) programs and policies have proven effective in achieving certain poverty alleviation goals, such as better health and education, only recently have we begun to explore the potential of CCTs to enhance economic inclusion and poverty reduction through wealth accumulation.
Jamie M. Zimmerman | April 20, 2009

The Savings and Financial Electronic Transaction (SAFE-T) Account

Over the past two decades, policymakers, academics, and others have pursued an array of policies and strategies to help lower and middle income households[i] to build savings and assets and access reasonably-priced financial products at mainstream institutions.  While some progress has been made, there have been few advances to delivering a high-value, affordable financial product at scale.

Melissa Koide | April 2009

Singapore's Central Provident Fund

In recent years, policymakers around the world have been attracted to the concept of integrating a consideration of assets into policy efforts aimed at securing and enhancing social welfare. The theory behind asset-based welfare policy suggests that while income facilitates immediate consumption, social development over the long-term occurs primarily through asset accumulation and investment (Sherraden, 1988, 1991). Assets may not only provide individuals with the ability to exert control over resources that can increase their financial security, they might also… more

April 2009

Articles & Books

Recent New America-authored articles, op-eds and books on this topic are featured below.

Turn America into a Nation of Savers

In pursuit of an economic recovery, President Obama has argued that we must transition from an "era of borrow-and-spend to one where we save and invest." It is an appealing concept, especially as the disappearance of surplus assets and historic levels of debt helped transform a garden-variety business cycle recession into a historic collapse.

But how does the saving and investing square with high levels of government borrowing and spending to stimulate the economy, protect those thrown out of work, and prop up consumer demand?

How Microloans Change the Lives of Millions

A recent op-ed in the Boston Globe argues that microlending "doesn't actually do much to fight poverty" and that it may be time to "think macro rather than micro." Maybe the hype surrounding microcredit as a panacea for everything from poverty to discrimination is undeserved. But debunking the whole bottom-up, micro approach on the basis of two unpublished papers is not just premature, but dangerous. Macro, trickle-down development policies have rather effectively kept billions of people poor

Shweta S. Banerjee | Foreign Policy | October 26, 2009

We Need to Fix How We Measure Poverty

From climate change to redistricting, New York City Mayor Michael Bloomberg and Gov. Arnold Schwarzenegger have teamed up on a number of issues. It's time to add another to the list -- updating the antiquated and misleading way we measure poverty.

It may seem like an odd concern for the Republican duo. But Bloomberg took the lead on the issue last year when conditions in New York City were similar to those California faces today: The economy was down; need was… more

Anne Stuhldreher | Sacramento Bee | October 13, 2009

Meet the Hazzards

As we mark the end of the first year of the financial bailout, the public seems to regard the government's actions with a toxic combination of rage and confusion. People are pissed off but too bewildered to know what to do with that anger. The confusion isn't an accident. The government hasn't exactly been forthcoming about how it's made buckets of money available to the banking sector. When it does disclose some information--such as in July's SIGTARP report from the Treasury or the Federal Reserve's weekly balance… more

Christopher Hayes | The Nation | October 12, 2009

Penny Pincher

I have a confession: I love my huge television. A couple of years ago, thanks to a very large Amazon.com gift certificate and a very poor grasp of measurements, I adopted a 50-inch plasma. It utterly dominated my tiny living room until I finally moved, yet even then I loved it. The vivid colors and enormous crystal-clear picture were a worthy substitute for the cinema. Video games were even better -- and "Blade Runner" on Blu-ray was sublime. It ended up being a very costly purchase,… more

Megan McArdle | New York Times | October 8, 2009

After Oppenheimer: Improving College Savings Plans

After their children's college savings accounts lost 38 percent of their value last year, some Illinois parents might be seeing some justice soon. The Illinois Treasurer's office recently reached a tentative deal with Oppenheimer funds to recover $77 million of the $85 million in losses.

Self-Sufficiency Stalled

Given the demonstrated link between transportation and employment, wouldn’t it be counterproductive to force families to surrender or downgrade their car in order to be eligible for assistance?

This recession marks the first time since welfare reform that policymakers are revisiting the social safety net.

Yet when thousands of families are struggling to find and keep employment, some on Beacon Hill threatened to cut the one tool proven effective in moving families from welfare to work: a car.

Rourke O'Brien | Boston Herald | June 13, 2009

Combating Poverty by Building Assets

A child in Uganda, orphaned when his parents died of AI DS, is off the streets and avoiding AI DS himself by saving money for secondary school with the support of the innovative Suubi project, which provides poor children with Child Development Accounts. In China's western Xinjiang region, a poor rural farmer sees his "dead," or untouchable, pension savings become "live," or usable income-producing assets, thanks to the work of a visionary local government bureaucrat.

'FinancialCorps' Would Fill Big Need

A bill to dramatically increase national service by expanding AmeriCorps hits President Obama's desk soon. While he's at it, we hope he will consider creating a different kind of corps -- a volunteer financial services corps to put quality financial advice within the reach of every American.

Traditional Lending Goes Mainstream

A whopping 44 percent of Mission District residents don't have low credit scores. They have NO credit scores. Without them, the only loans they can get are the loans no one wants - those with pricey interest rates and harsh terms. And if doors to affordable credit seemed closed to these consumers before the financial meltdown, they're slammed shut now.

Traditional Lending Goes Mainstream

A whopping 44 percent of Mission District residents don't have low credit scores. They have NO credit scores. Without them, the only loans they can get are the loans no one wants - those with pricey interest rates and harsh terms. And if doors to affordable credit seemed closed to these consumers before the financial meltdown, they're slammed shut now.

The Next Progressive Era

nextprogressiveera92x140.jpg

The Next Progressive Era provides a blueprint for a re-empowered progressive movement and describes its implications for American families, work, health, food, and savings.

What the Poor Can Teach the Rich at G-20

This week's G-20 summit is essentially an echo chamber for the world's wealthy to talk macrofinance. The world economy might rebound more quickly if they listen to what the poor have to say about microfinance.

Learning from the Past

While there is little to celebrate in the current foreclosure disaster, one potential silver lining in the large number of bank-owned properties is the opportunity to turn those properties into community assets. A May 2008 conference hosted by the Furman Center for Real Estate and Urban Policy at New York University and sponsored by the Ford Foundation brought together policy experts and practitioners to share best practices for “Transforming Foreclosed Properties into Community Assets.” Most of the discussion focused on what can be done by partners… more

How Judges Might Help Troubled Homeowners

Remember fieldtrips? All 535 members of Congress should take one this week to Room 675 of the County Courthouse in Philadelphia. Doing so would bust some myths surrounding the "cram down" legislation – now stalled in the Senate – that would allow bankruptcy judges to reduce payments on troubled mortgages.

Save More for Yourself and America

As the economy slows, millions of Americans will cut their budgets to stay afloat. This generates conflicting impulses: If I skip that morning coffee and granola, will my thriftiness put my local coffee shop out of business?

Will that force America's granola farmers to lay off workers? What's a budget-conscious, patriotic and hungry girl to do?

Not to worry, saving a few dollars now will not prolong the recession. And, more important, spending all your discretionary income will not end the recession.

The End of the Ownership Society?

In his second inaugural address, President Bush offered a vision of an "ownership society"

Marc Goldwein | History News Network | February 16, 2009

Events

Related New America events, both recent and upcoming (if any), are featured below.

Experts

Ray Boshara

Senior Research Fellow, Asset Building Program and Vice President

Ray Boshara is Vice President and Senior Research Fellow at the New America Foundation, a Washington-based think-tank. Until July 2009, he was the director of the Asset Building Program, and launched the Next Social Contract and College Savings Initiatives at New America as well.

Olivia Calderon

Olivia Calderon California Legislative Director, California Asset Building Program
Olivia Calderon is the California Legislative Director of the New America Foundation's Asset Building Program, which aims to significantly broaden savings and asset ownership in California.
Areas of Expertise: Ownership & Assets

Reid Cramer

Reid Cramer Director, Asset Building Program

Reid Cramer is Director of the Asset Building Program at the New America Foundation, where he leads the program's policy research activities. Previously, he served as the program’s Research Director and as a Co-Director of the New America Foundation's Next Social Contract Initiative, an effort to examine the delivery of… more

Hosai Ehsan

Hosai Ehsan Policy Analyst, Asset Building Program

Hosai Ehsan is a Policy Analyst with the Asset Building Program at the New America Foundation. Based in Sacramento, she leads and conducts policy research designed to help low- and moderate-income families build assets. She also writes issue briefs, working papers, op-eds, represents the program to media outlets… more

Areas of Expertise: Ownership & Assets

Mark Huelsman

Program Associate, College Savings Initiative

As Program Associate in the College Savings Initiative, Mark Huelsman researches and promotes policy ideas to make 529 college savings plans more progressive and accessible to low-income populations. In addition, he helps to support the initiative’s communications and operations. Mr. Huelsman previously served as Program Associate to the Asset Building… more

Areas of Expertise: Ownership & Assets

Justin King

Justin King Federal Policy Liaison, Asset Building Program

As Federal Policy Liaison of the Asset Building Program at the New America Foundation, Justin King is at the fore of efforts to educate policymakers in the legislative and executive branches about broadening asset ownership in the United States.  He works closely with the leadership of New America to devise… more

Melissa Koide

Melissa Koide Deputy Director, Asset Building Program
Melissa Koide is Deputy Director of the Asset Building Program at the New America Foundation. In that role, she works to provide national leadership on public policies related to expanding wealth-building financial services, especially for low- and middle-income families; improving financial education; forging a new responsibility framework for consumer financial… more
Areas of Expertise: Ownership & Assets

Alejandra Lopez-Fernandini

Senior Policy Analyst, Asset Building Program

Alejandra Lopez-Fernandini is a Senior Policy Analyst in the Asset Building Program at the New America Foundation. Her primary responsibilities include conducting research and analysis on policies related to short-term savings needs and managing the AutoSave pilot.

Areas of Expertise: Ownership & Assets

David Newville

Policy Analyst, Asset Building Program

As a Policy Analyst for the Asset Building Program, David Newville researches and analyzes savings and ownership policies that promote economic security and advancement for low- and middle-income families.  He… more

Areas of Expertise: Ownership & Assets

Rourke O'Brien

Rourke O'Brien Research Fellow, Asset Building Program
As a Research Fellow in the Asset Building Program, Rourke O’Brien concentrates on policies aimed at promoting economic self-sufficiency for low- and moderate-income families. Mr. O'Brien's current research projects include analyzing the economic behavior of low income families, specifically to determine how public assistance eligibility and informal lending networks influence… more
Areas of Expertise: Ownership & Assets

Ellen Seidman

Ellen Seidman Senior Research Fellow, Asset Building Program

Areas of Expertise: Economic Growth, Ownership & Assets

Leila Seradj

Program Associate, Global Assets Project, Asset Building Program

Leila Seradj is the Program Associate for the Global Assets Project, a joint venture of the Asset Building Program of the New America Foundation and the Center for Social Development at Washington University in St. Louis. She provides programmatic and research support for the project.

Ms. Seradj graduated with Latin and college honors from the University… more

Areas of Expertise: Ownership & Assets

Maria Sotero

Research Associate, California Asset Building Program

Maria Sotero is the Research Associate for the Asset Building Program in California. She works to support the program and its work through research, writing, and event planning. She blogs about financial empowerment strategies for low-income Californians and manages the program's social media outreach, working to build and maintain a virtual warehouse of asset policy… more

Areas of Expertise: Ownership & Assets

Fred Ssewamala

Fred Ssewamala Senior Research Fellow, Asset Building Program

Fred M. Ssewamala is Assistant Professor of Social Work in the Columbia University School of Social Work, and a Faculty Associate with the Center for Social Development at Washington University (St. Louis). Dr. Ssewamala designed programs for poverty alleviation and community development, with an emphasis on asset-development initiatives, for the… more

Areas of Expertise: Ownership & Assets

Anne Stuhldreher

Con_719_2_sm.JPG Senior Research Fellow, California and Asset Building Programs

Anne Stuhldreher is a Senior Research Fellow with the Asset Building Program at the New America Foundation. She writes about social and economic issues for outlets such as the Los Angeles Times, San Francisco Chronicle, NPR, and academic journals. Previously, Anne was a Senior Policy Advisor to California Governor… more

Areas of Expertise: Ownership & Assets

Jamie M. Zimmerman

Jamie M. Zimmerman Deputy Director, Global Assets Project, Asset Building Program
Jamie M. Zimmerman is Deputy Director of the Global Assets Project, a joint venture of the Asset Building Program at the New America Foundation and the Center for Social Development at Washington University in St. Louis. The project, launched in 2006, aims to inform and stimulate global asset-building innovations among… more
Areas of Expertise: Ownership & Assets

Press

Press Release/Media AppearanceDate
Consumer Groups Love Dodd's Proposed Financial Regulation | McClatchy Washington BureauNovember 12, 2009
Banking Development District Initiative Advances in Los AngelesOctober 30, 2009
Banking Districts Proposed for Low Income Areas | San Fernando Valley Business JournalOctober 30, 2009
Banks for Poor Neighborhoods in Los Angeles | La OpinionOctober 29, 2009
US FDIC Officials Push To Expand Small-Dollar Loan Program | Dow JonesOctober 27, 2009
Frank: Zero Odds of Single Regulator | American BankerOctober 26, 2009
US Treasury Eyes Support for Community Loan Funds | ReutersOctober 23, 2009
Treasury Adviser: Small Institutions Should Back Consumer Agency | Dow JonesOctober 23, 2009
Frank: No Reasonable Chance of Consolidated Bank Regulator | MarketWatchOctober 23, 2009
Advocates Fight for 'Underbanked' | MarketplaceOctober 23, 2009
Live Chat: Savings as a Path Out of Poverty, Tuesday at Noon ET | New America/PoliticoOctober 19, 2009
The New America Foundation and Columbia University Receive Grant to Launch Child Development Account Policy Pilot in Niger DeltaOctober 13, 2009
Bank Buster | Mother JonesOctober 8, 2009
Congress Is Riled Up | WIBWOctober 7, 2009
Overdraft Fees | CNN MoneyOctober 7, 2009
ASPIRE Act | U.S. News & World ReportOctober 6, 2009
Fearful Asymmetry: The Tiger Ages Badly | ai5000October 5, 2009
529s | Wall Street JournalOctober 4, 2009
Prepaid College Savings Plans Might Not Cover All Costs | New York TimesOctober 4, 2009
Underbanked Communities | Kojo Nmandi Show (WAMU)September 28, 2009