financial-crisis

The phenomenon of increasing “job polarization” in the U.S. labor market — a sharper division of work into low- and high-skill categories, with fewer middle-skill jobs left — has been well-documented in academic literature. Technology, globalization and the decline of U.S. manufacturing are often thought to be driving this trend. But the precise dynamics are still being investigated.

Economists have several methods for measuring financial stability within a society. One such measure is “financial fragility,” or a household’s ability to access emergency funds from any source in a moment of crisis. It is a stark measure of assessment, for sure, but it is revealing of the level of vulnerability — and potential anxiety — with which many workers and their families presently cope.

The housing and investment crisis beginning in 2008 revealed some of the financial dysfunction in American households. Research has shown that those with lower financial literacy are less likely to have a checking account, emergency fund or retirement plan, and are more likely to take pay-day loans, pay only minimum credit card balances, take on unaffordable mortgages and carry debt.

Many colleges and universities nationwide continue to come under increased pressure to justify the value of a college degree. In particular, more policymakers are pushing for accountability among public institutions and making funding decisions based at least partly on the employment rates and salaries of recent graduates.

Reporting intelligently about the financial markets has become increasingly important as more people have added stocks to their financial portfolios. Just 40 years ago less than 20% of U.S. households had some sort of stock ownership; now more than half do. While stocks are the most widely known financial product traded in the markets, others include bonds (debt, essentially), commodities and futures contracts, and currency.