Ray Boshara: All Publications, Events and Press

Confronting the Debt Culture

Communications — Mon, 12 May 2008 11:00:00 -0400

A New America Event
05/12/2008 - 5:00pm

"By some estimates, payday loans topped $28 billion last year, and have doubled every year for the past five years. These numbers are really frightening."

-Sheila Bair, Chairman, Federal Deposit Insurance Corporation, April 19, 2007

Join the New America Foundation/Asset Building Program and the Institute for American Values for a timely conference on thrift and its increasingly important role in reducing and managing personal and societal debt. Speakers will discuss changing the debt culture, solutions to payday lending, and lessons from abroad.

For attendees who register through the New America website, the conference is free (otherwise it is $50). Your free registration through New America entitles you to:

receive a copy of the report, For a New Thrift: Confronting the Debt Culture;
participate in all sessions and attend the May 13 luncheon; and
attend a reception at 5:00 p.m. on May 12 and preview the exhibit, Thrift: In Search of the Art of Living Well.

For more information and the conference agenda, please visit the conference website.

This conference is co-sponsored by Demos, the Institute for American Values, the National Federation of Community Development Credit Unions, the New America Foundation, Public Agenda, and the University of Virginia's Institute for Advanced Studies in Culture.

Policy Approaches for Saving and Asset Building by Low-Income Americans

Asset Building — Wed, 19 Mar 2008 12:59:00 -0400

Beyond Stimulus

Communications — Tue, 26 Feb 2008 09:00:00 -0500

A New America Event
02/26/2008 - 9:00am

While the President signs into law a $152 billion stimulus package to jumpstart the economy, millions of Americans continue to rack up consumer debt, watch their home values slide, and worry about their futures with little to no savings. In fact, even with stimulus checks on the way to promote consumption, Americans are focusing on the need to rein in their debt and save more. A recent Harris Interactive poll found that when it comes to using the tax rebate, 47 percent say they intend to pay down debt, while another 32 percent report they will save it.

Although very few doubt the need for an economic kick start, more attention is needed to address the lack of savings and debt crisis of today, facilitate savings for the future, and promote economic health and financial stability over the course of a lifetime.

New research, policies, and business strategies are emerging that enable Americans to meet a range of savings needs, from short-term, precautionary savings as an alternative to consumer debt; to adequate savings for mid-life asset purchases; to longer-term default strategies to enable Americans to reach their retirement goals.

Our expert panel will share new insights and research that make the case for new savings strategies and policies for all Americans. Please join us for this very timely discussion.

Ray Boshara, Phil Longman in Houston Chronicle | "Thrift is it in 2008"

Communications — Sat, 12 Jan 2008 10:18:00 -0500

New America in the News:
Time to Make Outsaving the Joneses a Reality (Houston Chronicle)

"One in seven families is dealing with a debt collector," Ray Boshara and Phillip Longman of the New America Foundation think tank wrote in a Washington Post commentary. "Children today are more likely to live through their parents' bankruptcy than their parents' divorce," they wrote. And that likelihood will increase this year. ...

New America Foundation Commends San Francisco Mayor Gavin Newsom’s Baby Savings Bond Proposal

Communications — Thu, 10 Jan 2008 14:26:00 -0500

Today, the New America Foundation Asset Building Program commended San Francisco Mayor Gavin Newsom’s innovative proposal to endow every child born in the city with a $500 Baby Savings Bond. The money, which would earn interest over time, would be available when the student graduates from high school, to be used for college costs or towards a first home.

“We applaud this bold, forward-looking proposal. Now that San Francisco has set the stage, we look to California and the rest of the country to offer young Americans the chance to realize their potential and to achieve their dreams,”… more

Ray Boshara in The Record (NJ) on Child Savings Accounts

Communications — Mon, 22 Oct 2007 08:26:00 -0400

New America in the News:

Concerned about the nation's poor savings rate, lawmakers such as Sen. Hillary Clinton have been talking about getting the government directly involved in establishing savings accounts for children.

The New York senator caused a stir last month when she said she would like to see every newborn receive a $5,000 bond that could be used later for college or a home purchase. Her remarks drew derision, and she has since backed away from that idea. About 4 million babies are born every year in the United States.

Lawmakers have kicked around a more modest plan for several years, one initially co-sponsored in 2004 by Jon Corzine, a Democrat, and Rick Santorum, a Pennsylvania Republican, who were serving in the Senate at the time. That plan would give every newborn $500 in a savings account. Sen. Charles Schumer, D-N.Y., reintroduced the bill this month.

The proposal calls for creation of an account at birth with a one-time $500 government contribution. Children living in households with incomes below the national median would be eligible for an extra contribution of as much as $500 at birth as well as the opportunity to earn $500 per year in matching funds. The money could be used later for housing, education or a retirement fund. The cost to taxpayers is estimated at $3.25 billion the first year and $37.5 billion over 10 years. When recipients turn 30, they would be required to repay the initial deposit, and that would provide seed money for future accounts.

Ray Boshara, vice president of the non-partisan Washington think tank The New America Foundation, and one of the leading advocates of the bill, said he and other champions of the measure are courting the banking industry for support. "We're working on them, but we haven't yet achieved a broad coalition," he said...

For the complete article, please follow this link.

Forget Easy Money

Articles — Sun, 07 Oct 2007 07:12:00 -0400

Countrywide Financial, the nation’s largest mortgage lender, has a curious new idea -- or, more precisely, an old one. No longer will it use wads of Chinese cash recycled through Wall Street to make subprime loans to unqualified borrowers. Instead, it will take in deposits from small savers and lend them out to people who might actually repay them -- just like that humble thrift institution president George Bailey did in It’s a Wonderful Life.

Imagine: a bank that promotes thrift! This could be the start of something big. Writing recently in the American Banker, Eugene Ludwig, a former comptroller of… more

Ray Boshara and the ASPIRE Act in the Los Angeles Times

Communications — Sun, 07 Oct 2007 03:08:00 -0400

New America in the News:

In 2004, Sens. Rick Santorum (R-Pa.) and Jon Corzine (D-N.J.) proposed the America Saving for Personal Investment, Retirement and Education (ASPIRE) Act, legislation that would have given every baby a minimum $500 endowment, untouchable for 18 years, at which time it could be used to help pay for college, put a down payment on a house or start a business....

The notion of a baby bond is grounded, according to supporters, in the concept of the American ownership society, which was a tenet of President Bush's 2004 campaign (when the practical application was privatizing Social Security).

"The intellectual history of this idea is property ownership -- the Homestead Act, the GI Bill -- conscious efforts to spread property ownership through the population," said Ray Boshara, director of the Asset Building Program at the nonpartisan New America Foundation, which helped craft the ASPIRE legislation and advised British officials on their program. "That has broad bipartisan support."

The idea, he said, is to put children on a path toward lifetime savings and wealth accumulation, a notion that appeals to conservatives and liberals.

On Wednesday, in fact, the ASPIRE legislation was quietly reintroduced in the House of Representatives by a bipartisan coalition. Boshara said the reaction to Clinton's remarks --especially Giuliani's -- made some Republican supporters nervous.

"Even if Rudy Giuliani thinks it's a good idea, he's not going to say that," said Boshara. "This is a campaign, and this was an easy target. I suspect that $500 would not have received quite the denunciation that $5,000 did."

Slightly more than 4 million babies are born in this country every year. Money in a baby bond plan would be invested and augmented by matching funds. Financial education would be part of the program. The goal would be to have around $20,000 available to each young adult when he or she turns 18.

"If you have assets as a kid, it changes your mind-set and your orientation, and conservatives love that part of the idea," said Boshara. "For Democrats, it's more about opportunity. When everyone was talking about Social Security and savings and retirement security, this was the only idea that brought Democrats and Republicans together..."

For the complete article, please visit the Los Angeles Times website.

Bipartisan Lawmakers Introduce 'KIDS Account' Bill to Build Savings, Financial Education, and Retirement Security

Communications — Fri, 05 Oct 2007 05:28:00 -0400

A bipartisan coalition introduced the America Saving for Personal Investment, Retirement, and Education Act (“The ASPIRE Act”) which would set up a “KIDS Account” at birth for every child in America which they can later use to pursue post-secondary education, buy their first home, or build up a nest-egg for retirement. The ASPIRE Act, which primarily benefits low-income kids, is based on research provided by the New America Foundation’s Asset Building Program. Representatives Patrick Kennedy (D-RI), Phil English (R-PA), Jim Cooper (D-TN), Rahm Emanuel (D-IL), and Tom Petri (R-WI) introduced the ASPIRE Act in the House on Wednesday.… more

KIDS Accounts

Communications — Wed, 03 Oct 2007 09:00:00 -0400

A New America Event
10/03/2007 - 2:00pm

An unlikely group of legislators, spanning the full political spectrum, is proposing a fresh, long-term response to the challenges of saving, financial education, and retirement security: KIDS Accounts.

By providing every newborn child a savings account at birth, with matching deposits for lower-income children, KIDS Accounts will create a national culture of savings and investing, promote financial education, and encourage life-long asset accumulation-especially higher education, homeownership, and a nest-egg for retirement.

There could not be a better time to re-build a culture of savings in America, beginning with every child in America. Not since the Great Depression have Americans saved so little, and not since the Great Depression have so many Americans risked losing their homes to foreclosure.

Joining the Senate and House champions of the ASPIRE Act, will be New York Times columnist David Brooks, a sample of the bill’s leading supporters, and a teenager from Delaware now saving for his future.

Marketplace Interviews Ray Boshara on Kids' Savings

Communications — Wed, 03 Oct 2007 04:17:00 -0400

New America in the News:

Scott Jagow: A bill being introduced in Congress this morning might breathe new life into an old idea: Savings accounts for children…

Sarah Gardner: The idea is simple: give every American newborn $500 in a tax-free savings account. At age 18, kids can use it for college -- or they can sock it away until later for a first home or retirement.

Supporter Ray Boshara at the New America Foundation says more than a third of children grow up in households without investments.

Ray Boshara: If we don't endow these kids with assets at birth, I think their opportunities for a better life are diminished. So-called "baby bonds" have high-profile support. Hillary Clinton recently proposed giving everyone $5,000 at birth…

To listen to the interview with Ray Boshara, please visit Marketplace's website, or download the attached MP3 file below.

Ray Boshara is director of New America's Asset Building Program. For more information on child savings accounts, please visit www.aspireact.org.

Ray Boshara Interviews with CNBC on Hillary's "Baby Bonds"

Communications — Mon, 01 Oct 2007 02:36:00 -0400

New America in the News:

Presidential hopeful Hillary Clinton is pushing the idea of giving infants special bonds in order to give them a headstart in life, with Ray Boshara, New America Foundation V.P. ...

"This was the only proposal in the multibillion dollars that brought Democrats and Republicans together back when we were talking about savings and retirement security," said Ray Boshara.

"It's important to teach financial basics and to reestablish a savings culture in america."

"It's the kind of entitlement that more that pays for itself over time... If you start with wealth you create more owners and investors."

Ray Boshara is also Director of the Asset Building Program. To view this video from "On the Money," please visit the CNBC website.

ASPIRE Act Frequently Asked Questions

Asset Building — Mon, 01 Oct 2007 02:00:00 -0400

The attached document answers the following questions about the America Saving for Personal Investment, Retirement, and Education (ASPIRE) Act:

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… more

Ray Boshara Discusses 'Baby Bonds' and Asset Reform on ABC News

Communications — Fri, 28 Sep 2007 04:07:00 -0400

New America in the News:

Sen. Hillary Clinton, D-N.Y., floated the idea Friday of giving every child born in America a $5,000 "baby bond" from the government to help pay for future costs of college or buying a home...

"I'm pleased that Sen. Clinton keeps talking about 'baby bonds,' whether $500 or $5,000 at birth," said Ray Boshara, the vice president of the New America Foundation.

Boshara, who has worked with Clinton's policy staff on the concept, did not see the different dollar figure floated by Clinton on Friday as reflecting a definite policy change. Rather, he saw it as an affirmation of her excitement with the concept and expects her to continue to work out the details when she develops a formal proposal.

"I think Sen. Clinton is very, very excited about accounts at birth and hasn't settled on the right combination between initial deposits and matching deposits until 18," said Boshara. "She and her staff told me in the next several months we'll work on the details. . . . When we work out the details, we'll figure out the best way to get to around $20,000 at 18 -- that's what matters."

Ray Boshara is Director of New America's Asset Building Program, which is hosting an event on Wednesday, Oct. 3, 2007, to showcase the ASPIRE Act and its goal of creating savings accounts for children. For this complete article, please visit the ABC News website.

Columnist Neal Peirce Extols Ray Boshara, Kids Savings Accounts

Communications — Mon, 18 Jun 2007 10:12:00 -0400

New America in the News:

Are the bad old days back? Read the headlines and you'd think so: "Violent Crime Blazing Back in America" and "Big-city murders way up since '04..."

Let's assume the recent rise is serious. What's happening? Lots of competing explanations get offered: Gang problems are now growing in smaller cities. Gun laws are loose and the politicos fear to stiffen them. Because we have the world's highest incarceration rate, rising numbers of inmates are being released from prisons — far too few rehabilitated or able to land a job...

Everyone wants truly dangerous criminals behind bars — indeed for as long as possible...

How about prevention — investing early, systematically in kids and families? This is the issue all the alarming crime headlines, and quick political fixes, ignore. Poverty, broken families, poor education and significant crime are inextricably bundled. Early childhood nutrition, care and education can pay off hugely later...

What of the argument that we can't "afford" the depth of early-childhood services such as other advanced nations provide?

Ray Boshara of the New America Foundation has a radically better idea: Establish an "American Stakeholder Account" for every child at birth — initial government deposit $6,000, plus eligibility for dollar-for-dollar matching funds for voluntary contributions up to $500 a year. Assuming modest but steady contributions, a young person might have $20,000 by age 18 for college tuition, a home, starting a business, or long-term savings.

What does such an idea have to do with crime? A lot, I'd think — building a mindset of hope is the best conceivable antidote to the lure of the streets, gangs and drug dependency. The ultimate benefits to the U.S. economy, in added wage earners and taxpayers, and fewer mired in lives of desperation, could be immense. America's surest road to a safer society is what we always claimed to be the best at — building opportunity...

For the complete article, please visit The Seattle Times website.

The Next Social Contract

Articles — Thu, 17 May 2007 12:54:00 -0400

The initial round of presidential primary debates leaves no doubt that the presidential horserace has already broken from the gates. While some may lament the early departure -- given that votes will not be cast for another 8 months -- the absence of incumbents vying for each party’s nomination has created a wide open race, one where the stakes are remarkably high.

Although most of the press coverage to date has focused on the daily stream of polls, jibes, and behind-the-scenes intrigue, the coming election represents our first real chance to remake the social contract for the 21st century. Our nation’s… more

The Assets Agenda 2007

Asset Building — Wed, 11 Apr 2007 21:48:00 -0400

America’s personal savings rate has been negative for the last two years, a dubious economic feat not achieved since the Great Depression. While many Americans own assets, most of our public policies that support savings and ownership leave out those who own little or nothing. If we are to successfully broaden savings and assets ownership, our policy efforts must be expanded, strengthened, and targeted to those with the greatest need.

The purpose of this issue brief is to summarize a federal public policy agenda to broaden savings and asset ownership opportunities for Americans with lower incomes and fewer resources. It reflects… more

Learning From Korea: Innovative Social Investment Strategies for Future Generations

Communications — Tue, 27 Mar 2007 01:00:00 -0400

A New America Event
03/26/2007 - 3:00pm

Social investment policies – policies that pursue both economic and social development – are increasingly shaping strategies for growth in both developed and developing nations. In January 2007, the Republic of Korea implemented a series of innovative policies, with a particular emphasis on investments in children. Informed by similar policies in the UK, the US and Canada, the Korean Minister of Health and Welfare, His Excellency Simin Rhyu, has now established a Child Development Accounts (CDAs) policy. These CDAs aim to build assets, foster financial education, and expand economic opportunity for the Republic of Korea’s future generations, beginning with those now most disadvantaged.

Rhyu has been deeply involved in progressive social policies and Korean politics far before his appointment as Minister of Health and Welfare. As a university student in 1980, Minister Rhyu was Chairman of the National Congress at the General Student Council of Seoul National University, one of the leading student organizations against the military coup d'etat. Due to his leadership role, he was imprisoned twice. While in prison, he helped spark the citizen movement against the dictatorship. Highlights from his dynamic career since his student leadership include serving as Chairman of the Republic's majority party, as the Director of the Office for Policy Planning at the Korea Research Foundation, and as a member of the National Assembly, where he led reform on the national pension system. He is the author of two best-selling books, World History Upside Down and Cafe on Economics, both of which have sold more than one million copies.

Please join the New America Foundation for a special guest forum with Minister Rhyu to discuss Korea’s new and timely social investment strategy – particularly Child Development Accounts and Hope Start -- and how they can inform policies in the US and around the world.

The forum is an event of the Global Assets Project, a joint venture of the Center for Social Development at Washington University in St. Louis and the Asset Building Program of the New America Foundation.

The Assets Report 2007

Asset Building — Thu, 01 Mar 2007 00:29:00 -0500

The purpose of this annual report is to summarize and take stock of the current state of federal policy through an asset-building lens, especially as it affects the asset base of families with lower incomes and fewer resources, which is the focus of our work. The report is divided into three sections. The first is a review of policy developments from the past year related to asset building; the second is an examination of the president’s budget proposals for fiscal year 2008 from an assets perspective; and the third is a forecast of the assets policy issues that may be… more

Catholic Social Thought and a New Strategy for Helping the Poor

Asset Building — Thu, 15 Feb 2007 16:22:00 -0500