Economic Security in a Changing World

Transcript

PETER ORSZAG: We are here today to discuss a crucial topic, why and how to provide more economic security to American families in a growth enhancing way. As you are going to hear later on today, the probability of a 50 percent or greater decline in family income has more than doubled since the early 1970s, rising from 7 percent then, to 17 percent now. So it is not at all surprising that in combination with stagnant real incomes and much more volatile incomes, that American families are not feeling so great about their economic well being.

The problem is not just that economic insecurity harms American families' well being, but also that it impairs growth, in particular, providing a core level, core layer of economic security makes it more likely that American workers and cope productively with the temporary setbacks that are an inevitable part of a dynamic economy. Most importantly, it diminishes political demands for growth reducing policies like protectionism or other steps to try to stop the process, or that would stop the process of ongoing growth.

How do we go about providing that additional economic security? We are releasing today a strategy document from the Hamilton Project that I co authored with Jason Bordoff and Michael Deich which lays out a vision for how to provide economic security in a growth enhancing way, and it focuses on two major components. The first is better preparation before adverse events happen, and the second is more pro work and market friendly assistance after bad events occur.

Panel 1: Economic Security and Economic Growth (PDF—76kb)

Panel 2: Can We Increase Economic Security Without Harming Economic Growth? (PDF—77kb)

Panel 3: What Single Policy Change Would Best Promote Broad Based Economic Growth? (PDF—75kb)

Panel 4: Economic Security in a Changing World (PDF—78 kb)

Read the full transcript (PDF—279kb)

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