(August 12 2019, PND by Candid) As economic inequality in the United States widens, financial security challenges faced by low-income individuals are becoming more like those seen in developing nations, a report from the Aspen Institute finds.
The report, The Great Convergence: Toward a Global Strategy for Financial Inclusion(11 pages, PDF), argues that financial inclusion efforts, once considered a solution largely for the developing world, are now highly relevant to the U.S. context. According to the report, while inequality has declined globally over the last two decades, it has increased significantly in the U.S., due in part to income volatility, the lack of steady, well-paying jobs, inefficient labor markets, widening income and wealth gaps, lack of economic mobility, resource-starved educational systems, and unaffordable postsecondary education — all elements that are common across the U.S. as well as in many developing countries. The share of people in the lower 40 percent of the U.S. income distribution pyramid lacking funds to cover an emergency, for example, is essentially the same as it is in middle-income countries such as Brazil, Kenya, and Malaysia.
Read the full article from Candid here.