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Idea of the Day: How to Comprehensively Manage Household Risk Exposure

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Household wealth—the difference between a household’s assets and its debt—is a crucial aspect of economic security. It allows households to pay for necessities during an economic emergency, and it permits families to invest in their future—pay for their children’s or their own education, start a business, switch jobs, move to advance their careers, and plan for a secure retirement.

For a family to benefit from it, household wealth has to actually be there when households need the economic security that comes from having wealth. Over the past few decades, however, household wealth has become increasingly volatile, meaning that wealth has swung up and down much more widely over the past two decades than it did in the preceding decades after World War II. Macroeconomic instability due to the housing and stock market bubbles—and bursts—is one of the contributing factors, but so is greater household-wealth risk exposure due to more investments in the housing and stock markets and greater household debt than in the past.

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To speak with our experts on this topic, please contact:

Print: Katie Peters (economy, education, poverty, Half in Ten Education Fund)
202.741.6285 or kpeters@americanprogress.org

Print: Anne Shoup (foreign policy and national security, energy, LGBT issues, health care, gun-violence prevention)
202.481.7146 or ashoup@americanprogress.org

Print: Crystal Patterson (immigration)
202.478.6350 or cpatterson@americanprogress.org

Print: Madeline Meth (women's issues, Legal Progress, higher education)
202.741.6277 or mmeth@americanprogress.org

Spanish-language and ethnic media: Tanya Arditi
202.741.6258 or tarditi@americanprogress.org

TV: Lindsay Hamilton
202.483.2675 or lhamilton@americanprogress.org

Radio: Chelsea Kiene
202.478.5328 or ckiene@americanprogress.org

 

This is part of a regular column: Idea of the Day

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