Would you be able to come up with the equivalent of US$400 in an emergency? Many people can’t. A recent survey by the United States Federal Reserve Board reveals that 47% of people in the United States can’t come up with that $400 without selling something or borrowing. That means they may be unable to fix their car or visit a hospital emergency room. They may struggle to pay … [Read more...] about When Emergency Spending is Impossible
Social Issues
A New Tool to Help Boost Incomes
Colombian Finance Minister Mauricio Cardenas once posed a question in an international meeting that has resounded as among the most significant for government planners. A finance minister has limited resources and a narrow window of reform. In which sectors will reform pay off most in terms of increasing per capita incomes? As countries in Latin America and the Caribbean—and … [Read more...] about A New Tool to Help Boost Incomes
Parties Crumble, Populists Rise
Primary elections in the United States this year have sent the party system careening towards a divisive and potentially explosive moment. Never in modern US history have party voters chosen as their presidential candidate someone so totally at odds with party orthodoxy on issues ranging from trade to immigration as Donald Trump. Nor has a presidential candidate been so shunned … [Read more...] about Parties Crumble, Populists Rise
Because Waiting for the Next Boom is Not Enough
Economies grew, millions were lifted from poverty, and social safety nets widened to support a growing share of vulnerable populations. When the United States and Europe experienced sharp downturns during the international financial crisis of 2008 and 2009, some governments in the region were able to increase spending and keep their own economies from slipping into … [Read more...] about Because Waiting for the Next Boom is Not Enough
Better Savings for Better Infrastructure
In 2014 the government of the small and impoverished city of Flint in the United States decided to draw its municipal water from a different river than it had been accustomed to while it waited to connect to a cheaper water system. But the new water was corrosive to water pipes, and environmental officials made a fateful decision not to add chemicals that would protect them. By … [Read more...] about Better Savings for Better Infrastructure