Rebalancing the Scales
Policy Paper
March 19, 2014
The 50th anniversary of the War on Poverty naturally prompts reflection on how much progress has been made and how to chart a path forward. While there is a marked divergence in the diagnosis of poverty’s roots and the policy prescriptions necessary to address them, a consensus is emerging that new efforts are needed to promote opportunity, economic mobility and to ensure that the American Dream remains attainable.
The idea that any person, no matter his or her starting place at birth, can get ahead and build a successful life lies at the heart of the American Dream. By providing the resources to weather the unexpected or invest in the future, savings can boost the immediate financial circumstance of one generation and the future prospects for the next. In fact, the Pew Economic Mobility Project finds that, among children born into families in the lowest income quartile, nearly three-quarters moved up over a generation if their parents were high-saving as opposed to only half of children with low-saving parents.
In the Obama administration’s budget request for fiscal year 2015, investments in saving and asset building are $573 billion.
- Savings and Investment: $124 billion
- Retirement: $148 billion
- Homeownership: $245 billion
- Post-secondary education: $56 billion
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