"The collection contains an incredibly rich amount of information, historical background, statistics, and ideas. It provides a significant contribution to our understanding of social reproduction, economic inequality, poverty, and the institutional mechanisms that shape wealth inequality. This book should be of interest to a broad audience."
- CONTEMPORARY SOCIOLOGY

"Assets for the Poor makes an important contribution to the debate on how the wealth-creating opportunities available to upper- and middle- class Americans can be extended to low income families. Many critical issues of asset development are discussed in this important book, which will be an essential resource for anyone concerned about the twin problems of poverty and inequality in American society today."
-JAMES MIDGLEY, University of California, Berkeley

"For those already convinced of the importance of assets for poor families, this comprehensive compendium will add breadth and depth. For those wavering as to whether asset-based policies are a useful anti- poverty tool, this book is likely to win you over."
- JARED BERNSTEIN, Economic Policy Institute, Washington, D.C.

'Assets for the Poor is the scholarly treatise on America's 'third revolution,' the movement to democratize capitalism. While the first struggle overcame foreign tyranny and the second defeated slavery to usher in an extended era of civil rights, the coming revolution will be over economic justice... an effort to secure for all families a share in the fruits of our democracy."
-J. LARRY BROWN, Brandeis University

Over the past three decades, average household wealth in the United States has declined among all but the richest families, with a near 80 percent drop among the nation's poorest families. Although the national debate about inequality has focused on income, it is wealth—the private assets amassed and passed on within families—that provides the extra economic cushion needed to move beyond mere day-to-day survival. Assets for the Poor is the first full-scale investigation into the importance of family wealth and the need for policies to encourage asset-building among the poor.

Assets for the Poor shows how institutional mechanisms designed to encourage acquisition of capital and property favor middle-class and high-income families. For example, the aggregate value of home mortgage tax deductions far outweighs the dollar amount of the subsidies provided by Section 8 rental vouchers and public housing. Banking definitions of creditworthiness largely exclude minorities, and welfare rules have made it nearly impossible for single mothers to accumulate savings, let alone stocks or real estate. Due to persistent residential segregation, even those minority families who do own homes are often denied equal access to better schools and public services.

The research in this volume shows that the poor do make use of the assets they have. Cash gifts—although small in size—are frequent within families and often lead to such positive results as homebuying and debt reduction, while tangible assets such as tools and cars help increase employment prospects. Assets for the Poor examines policies such as Individual Development Account tax subsidies to reward financial savings among the poor, and more liberal credit rules to make borrowing easier and less costly. The contributors also offer thoughtful advice for bringing the poor into mainstream savings institutions and warn against developing asset building policies at the expense of existing safety net programs.

Asset-building for low-income families is a powerful idea that offers hope to families searching for a way out of poverty. Assets for the Poor challenges current thinking regarding poverty reduction policies and proposes a major shift in the way we think about families and how they make a better life.

THOMAS M. SHAPIRO is professor of sociology at Northeastern University.

EDWARD N. WOLFF is professor of economics at New York University.

CONTRIBUTORS: Richard V. Burkhauser, John Sibley Butler, Stacie Carney, Dalton Conley, Nancy A. Denton, Kathryn Edin, William G. Gale, Robert Haveman, Lelvin L. Oliver, Laurence S. Seidman, Thomas M. Shapiro, Michael Sherraden, Seymour Spilerman, Mark J. Stern, Robert Weathers, Mark O. Wilhelm, Edward N. Wolff

A Volume in the Ford Foundation Series on Asset Building

"This book represents a step in the right direction by making important distinctions among types of social capital. Moreover, it addresses how social capital can be generated and used to combat poverty and promote social justice. By providing direction for policy and community practice, research, and teaching, this volume will be a useful addition to many courses and bookshelves."
-Journal of Community Practice

"A landmark accomplishment on three fronts: the evolution of social capital scholarship, our understanding of the causes and consequences of 'true disadvantage,' and our knowledge of effective approaches to working with poor communities. Deftly integrating the practical applications of theory and the theoretical implications of hard-won lessons from the field, this volume showcases the work of America's finest thinkers and doers in the rapidly expanding social capital universe. In conjunction with related work on poverty in low income countries, these U.S. cases powerfully demonstrate that a focus on building up the social, economic, and political assets-rather than harping on the 'deficits'-of poor communities can rest on rigorous conceptual and empirical foundations, and provide a coherent framework for informed policy and project recommendations. Too many books are labeled 'required reading,' but whether you're a new or seasoned reader of the social capital literature, this volume belongs at the top of the list."
-Michael Woolcock, World Bank and Harvard University

"Social Capital and Poor Communities shows why community building is critical to improving the lives of families in low-income communities, and offers fresh ideas for mobilizing social resources to improve housing, education, health, public safety, and economic development. This important book tackles tough questions about how community organizations can act effectively together, the importance of leadership development and institution-building, and the challenges of working in policy and political arenas. Bringing the latest in social science research together with the results of practical efforts to combat poverty, this volume is must reading for policymakers, practitioners, and all those concerned about justice and equity in America."
-Angela Glover Blackwell, PolicyLink

Neighborhood support groups have always played a key role in helping the poor survive, but combating poverty requires more than simply meeting the needs of day-to-day subsistence. Social Capital and Poor Communities shows the significant achievements that can be made through collective strategies, which empower the poor to become active partners in revitalizing their neighborhoods. Trust and cooperation among residents and local organizations such as churches, small businesses, and unions form the basis of social capital, which provides access to resources that would otherwise be out of reach to poor families.

Social Capital and Poor Communities examines civic initiatives that have built affordable housing, fostered small businesses, promoted neighborhood safety, and increased political participation. At the core of each initiative lie local institutions—church congregations, parent-teacher groups, tenant associations, and community improvement alliances. The contributors explore how such groups build networks of leaders and followers and how the social power they cultivate can be successfully transferred from smaller goals to broader political advocacy. For example, community-based groups often become platforms for leaders hoping to run for local office. Church-based groups and interfaith organizations can lobby for affordable housing, job training programs, and school improvement.

Social Capital and Poor Communities convincingly demonstrates why building social capital is so important in enabling the poor to seek greater access to financial resources and public services. As the contributors make clear, this task is neither automatic nor easy. The book's frank discussions of both successes and failures illustrate the pitfalls—conflicts of interest, resistance from power elites, and racial exclusion—that can threaten even the most promising initiatives. The impressive evidence in this volume offers valuable insights into how goal formation, leadership, and cooperation can be effectively cultivated, resulting in a remarkable force for change and a rich public life even for those communities mired in seemingly hopeless poverty.

SUSAN SAEGERT is professor of environmental psychology at the Graduate Center, City University of New York.

J. PHILLIP THOMPSON is Associate Professor in American politics, Columbia University.

MARK R. WARREN is associate professor in the Graduate School of Education at Harvard University.

CONTRIBUTORS:  Mark Chaves,  Cathy J. Cohen,  Cynthia M. Duncan,  Michael Foley,  Ross Gittell,  Sherman A. James,  Langley C. Keyes,  Margaret Levi,  M. Lisette Lopez,  John D. McCarthy, Lorraine C. Minnite,  Pedro A. Noguera,  Melvin L. Oliver,  Robert Putnam,  Robert J. Sampson,  Amy Schulz,  Robert Y. Shapiro,  Carol B. Stack,  Juliana van Olphen.

A Volume in the Ford Foundation Series on Asset Building

"One of the best collections of papers to come my way in a long time on improving programs aimed at cultivating opportunities for children. It is a treasure trove for academics and policy makers."
-Frank Furstenberg Jr., University of Pennsylvania

"Sheldon Danziger and Jane Waldfogel have given us an exciting new framework for thinking about the reproduction of poverty and have brought together some of the most insightful minds in economics, sociology, and developmental psychology to tell us what to do."
-Sara S. McLanahan, Princeton University

More than ever, the economic health of a country depends upon the skills, knowledge, and capacities of its people. How does a person acquire these human assets and how can we promote their development? Securing the Future assembles an interdisciplinary team of scholars to investigate the full range of factors—pediatric, psychological, social, and economic—that bear on a child's development into a well-adjusted, economically productive member of society. A central purpose of the volume is to identify sound interventions that will boost human assets, particularly among the disadvantaged. The book provides a comprehensive evaluation of current initiatives and offers a wealth of new suggestions for effective public and private investments in child development.

While children from affluent, highly educated families have good quality child care and an expensive education provided for them, children from poor families make do with informal child care and a public school system that does not always meet their needs. How might we best redress this growing imbalance? The contributors to this volume recommend policies that treat academic attainment together with psychological development and social adjustment. Mentoring programs, for example, promote better school performance by first fostering a young person's motivation to learn. Investments made early in life, such as preschool education, are shown to have the greatest impact on later learning for the least cost.

In their focus upon children, however, the authors do not neglect the important links between generations. Poverty and inequality harm the development of parents and children alike. Interventions that empower parents to fight for better services and better schools are also of great benefit to their children.

Securing the Future shows how investments in child development are both a means to an end and an end in themselves. They benefit the child directly and they also help that child contribute to the well-being of society. This book points us toward more effective strategies for promoting the economic success and the social cohesion of future generations.

SHELDON DANZIGER is Distinguished University Professor of Public Policy and co-director of the National Poverty Center at the University of Michigan.
 
JANE WALDFOGEL is professor of social work and public affairs at the Columbia University School of Social Work and research associate at the Centre for Analysis of Social Exclusion at the London School of Economics.

CONTRIBUTORS: Debra Donahoe, Jacquelynne S. Eccles,  James J. Jeckman,  Robert S. Kahn,  Thomas J. Kane,  Lance Lochner,  Lisa M. Lynch,  Melvin L. Oliver,  Hillard Pouncy,  Craig T. Ramey,  Sharon Landesman Ramey,  Robert J. Sampson,  Margaret Beale Spencer, Dena Phillips Swanson,  Marta Tienda,  Allan Wigfield,  Barry Zuckerman, M.D.

A Volume in the Ford Foundation Series on Asset Building