Asset Building Program: Policy Papers

A college education is not only increasingly a necessity to secure a good job, but also often the first step to acquiring assets and creating greater opportunities. Each additional year of educational attainment yields increased earnings and makes the ownership of assets such as investments, retirement savings, a home, and other sources of wealth more likely. With the reauthorization of the Higher Education Act underway in 2004, an opportunity now exists to make a college education available to every qualified… more

This menu of policy options was written with federal policymakers in mind. It reflects the latest and best thinking, and draws heavily on the work of many experts focusing on various facets of savings and asset-building policy. As there are many policy routes to broadening savings and asset ownership, there is necessarily some overlap among the ideas presented below. The proposals are at varying stages of development—some (such as Individual Development Accounts) are fully developed, others (on asset protection, for… more

Based on the assumption that lifelong learning is a form of asset accumulation, this paper discusses a range of financing strategies. The paper includes a summary of what has been learned about assets, both from research and demonstrations largely centered in the U.S. While the evidence strongly suggests that assets are worth accumulating for both economic and social reasons, this begs the question, how can the poor possibly accumulate assets? To answer this question, we closely examine the U.S. experience… more

Each September the Census Bureau releases its official calculation of the national poverty rate, intended to reflect the extent of economic hardship in the United States. Despite advances in available data and methodological techniques, the mechanics of the official poverty measure have not been significantly altered for four decades. The once useful metric has, unfortunately, not worn well. Today the official poverty measure provides an incomplete and inaccurate representation of the poor. Perhaps most troubling is that it misses important… more

Michael Sherraden’s (1991) groundbreaking idea of building assets for low-income persons has made remarkable progress at the federal level in the United States (U.S.) over the last decade, for three reasons. First, policymakers have easily grasped both the distinction between income and assets, and the importance of assets. Second, the idea debuted and progressed as the nation and policymakers were highly receptive to new ideas for ending welfare and poverty. And third, data generated (Schreiner et al., 2000 and 2001)… more

To greatly expand opportunity, to broaden asset ownership, and to fortify the American economy for the long-haul, an American Stakeholder Account (ASA) should be established for every child born in America and made available to all other persons age 18 and under. Over time, this “Homestead Act of the 21st Century” will evolve into a universal system through which all Americans can meet their asset needs throughout life— securing post-secondary education and life-long learning, purchasing a first home, making investments,… more