How the Economy Affects Economic Security

A new study provides insight into the impact of the economic crisis and the great recession on American families and how the experience of economic uncertainty has affected their well being.

“Shaky Ground”

The research study was headed by Jacob Hacker, a professor of Political Science and economic security expert at Yale University. The Rockefeller Foundation supported the study, “Standing on Shaky Ground: Americans’ Experiences with Economic Uncertainty,” which shows the extent to which Americans were impacted by economic hardship in the 18 month period preceding September 2009. Hacker reported that during that time period, 93 percent of American households experienced at least one “substantial economic shock” and that economic uncertainty has become the rule, rather than the exception, even in good times.

The Economy

This study shows the extent to which many families have been impacted by the economy. Many people continue to struggle in the aftermath of the recession and as the report shows, the risk of economic hardship has impacted many middle class and upper middle class households who are unable to meet even basic economic needs.

Economic Security

What can be learned from the results of this study? This is how I would sum it up. No one can predict the future and economic uncertainty is a fact of life. The best way to reduce the impact of another economic crisis is to prepare for uncertainties and the risks to your economic security.