In its latest research and policy brief, IASP critically reflects the conceptualization and measurement of "asset poverty" and introduces a new approach for practice and research. The Asset Security and Opportunity Index re-conceptualizes past approaches in three areas: income in the absence of employment income such as unemployment benefits; an alternative poverty measure that reflects a more realistic coverage of essential needs; and capturing asset opportunities, investments and resources that can be leveraged for mobility, security, and stability. Findings show that four out of ten U.S. households lack asset security. Two out of three households of color do not have sufficient assets to sustain themselves when faced with unemployment, and only one in five households among them have financial assets for mobility investments.
In "Community Assets - Expanding Beyond Individual Asset Ownership" Hannah Thomas and Thomas Shapiro build a case for the asset field to look to not only individual forms of ownership, but also to community forms of ownership that resonate with a place-based approach to community development.
This article appears in Chapter 18 of Building Healthy Communities: A Guide to Community Economic Development for Advocates, Lawyers and Policymakers, edited by Roger Clay, Jr. & Susan R. Jones.
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Barbara Ehrenreich and Dedrick Muhammad cite the IASP report "The Downslide before the Downturn: Declining Economic Security Among Middle Class African Americans and Latinos, 2000-2006" to illustrate the tenuous economic status of black middle class families before the current recession. In particular, they cite the large proportion of black families in danger of falling out of the middle class.
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Tatjana Meschede and Laura Sullivan were awarded funding through the PSID small grant competition operated by the Survey Research Center at the University of Michigan Institute for Social Research for their study titled "Negative Health Events and Wealth Trajectories for Working Age Adults: A Longitudinal Analysis and Exploration by Race and Ethnicity". This study investigates the impact of negative health events on life cycle savings and wealth building with a specific focus on African-Americans and Latinos. Findings will serve to help the research and policy communities better understand the lasting effects of health problems on economic security and on the ability of families to build assets. Findings will also provide new evidence on the long-term implications of health events on family wealth that has not been captured before.
Ten researchers working on real estate foreclosure research in Massachusetts convened at the Federal Reserve Bank of Boston to share details of their projects. Although some projects had results to report and others are still in process, the convening expanded knowledge of local activity in the field as communities across the state and nation are facing the impact of foreclosures. The July 23rd event was organized by IASP, the Federal Reserve Bank and Citizen's Housing and Planning Association.
The Massachusetts Asset Development Commission's report, prepared by IASP, recommends ways to better assist low- to moderate-income families to build and retain assets. The report, released at a State House event with Governor Patrick and legislative leaders, puts forward strategic recommendations for administrative actions, regulatory reforms, and legislative proposals.
View the report
View the Boston Globe article about the report
View the Boston Globe editorial about the report
View the Event
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Dr. Shapiro frames racial wealth inequality as the hidden fault line of American democracy, arguing for a new civil rights movement for the 21st century that focuses on economic opportunity, inclusion and closing the racial wealth gap.
Based on the Demos/IASP Middle Class Security Index, this new report shows that households of color experienced much larger declines in middle class economic security than the overall middle class. While nationally middle class economic security declined by 5 percentage points from 29% in 2000 to 24% in 2006, it declined by 10 percentage points (from 26% to 16%) for African Americans, and by 11 percentage points (from 23% to 12%) for Latino middle class households. These declines are mostly driven by dramatic losses in financial assets for middle class households of color.
View the report
View the press release
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Wider Opportunities for Women (WOW), the Gerontology Institute at the University of Massachusetts Boston, Demos and the Institute on Assets and Social Policy at Brandeis University issued a statement on the complementary nature of our two measures of senior economic security and senior long-term financial stability.
This Boston Globe April 10, 2009 editorial cited the recent IASP report, A Brighter Financial Future: The Role of the EITC and Financial Education in Advancing the Asset Formation Efforts of Community Action Agencies. This study was conducted in partnership with MASSCAP and the Community Action Agencies across the state. The editorial notes how the combination of the credit to reward work provided by the EITC and financial education "... helps many families jump-start a savings program or take steps toward building assets."
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The event took place in the Schneider Family Building at the Heller School for Management and Social Policy.
The IASP report finds 68% of all senior households in Massachusetts are financially vulnerable, lacking sufficient resources to meet essential expenses and cover projected costs over their lifetimes. Economic insecurity is particularly pronounced for Massachusetts' single senior households - with 82% among them facing financial insecurity.
These ominous trends for older adults have been accelerated by the current economic crisis increasing the urgency to stabilize and enhance retirement resources. Future retirees will be worse off, unless we attend to policies that grow their resources for the future, and combat the rising costs of essential expenses for seniors.
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Read about the event
In partnership with MASSCAP, and with the support of grants from The Boston Foundation, IASP conducted research to guide implementation of asset formation programs at Community Action Agencies. The combined services of free tax preparation and basic financial education are viewed as critical building blocks in the asset formation and retention strategy of community-based organizations.
This report of the Asset Development Commission, appointed by Governor Patrick and the legislature, puts forward 18 recommendations for immediate administrative and legislative action. These recommendations are to advance its mission to "ensure Massachusetts residents, especially those who are low and moderate income or asset poor, throughout life have opportunities to develop the assets necessary for sustainable economic security and improved quality of life, and the capacity to end intergenerational cycles of poverty." IASP aided in the drafting of this report as it will the Commission's final report to be released in June 2009.
Selected by the National Academy of Social Insurance (NASI) as one of 12 scholars to compose a policy paper on improving Social Security for vulnerable groups, IASP discusses three spheres to enhance social security benefits for low-income workers. These include enhancing the existing special minimum benefit, considering program interactions to ensure economic security for beneficiaries of the new minimum, and updating asset limits in the Supplemental Social Security (SSI) program to reflect, at a minimum, inflation since program implementation.
View IASP paper
View NASI press release
View NASI report
The new report by IASP and Demos finds 78% of all senior households are financially vulnerable when it comes to their ability to meet essential expenses and cover projected costs over their lifetimes. Economic insecurity is particularly pronounced for single senior households - with 84% among them facing financial insecurity. These sobering stats serve as an economic distress signal for older Americans and a wake-up call for younger and middle-aged Americans.
View press release
View report
View fact sheet for the report
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In the Winter 2008 edition of Community Investments, the San Francisco Federal Reserve Board community development magazine, Hannah Thomas and Thomas Shapiro argue that the current economic crisis offers a window to rethink old approaches to ownership. They point to models emerging around the country demonstrating the possibilities of both community and individual ownership, such as Market Creek Plaza in San Diego, the Mission Asset Fund in San Francisco, and Champlain Housing Trust in Vermont.
© 2009, Institute on Assets and Social Policy, The Heller School for Social Policy and Management, Brandeis University. All rights are reserved.
