Asset Building Program

Mission: The mission of the Congressional Savings and Ownership Caucus is to explore, debate, and advance policies to build savings and assets for all Americans, particularly those with lower incomes and fewer resources. We envision a nation in which all Americans are owners of financial assets, and thus better able to exert control over their economic futures. Since its inception in 2005, the Caucus has been examining a variety of issues related to savings and ownership-issues which now loom larger than ever.

Statement of Problem: In the run up to the current financial crisis, the U.S. personal savings rate dropped to historic lows-near 1%, down from 6% in 1993 and 10% a decade earlier. Savings is a foundation of economic security, but too many families are besieged by debt and have few assets to call their own. According to the Federal Reserve, a clear majority of Americans, 60%, own less than 5% of the nation's wealth, with the bottom 40% owning less than 1%.

When Americans don't have enough savings and assets, they may be one plant closing or medical emergency away from financial crisis. Nor can they buy a home, send their children to college, start a business, reduce or manage their debts, make long-term investments, build up a nest-egg for retirement, or pass on opportunities to future generations. Moreover, poor savings rates correspond directly to the availability of investment capital, making the United States dependent on foreign inflows of capital to finance the national debt.

The Caucus works on a variety of issues related to savings and ownership, with a special focus on federal policies to enhance personal savings and the acquisition of long-term, productive assets.

Caucus Activities:

• Sponsor events within Congress to raise the awareness of policymakers, the media, and others about the importance of boosting personal savings and broadening the ownership of assets.
• Create an active working group of members and staff with the goal of developing innovative federal policies aimed at boosting personal savings, individual ownership of wealth, and financial education.
• Provide caucus members with up-to-date information regarding the state of savings, debt and other relevant economic facts about American households.
• Provide a forum for caucus members to promote and discuss their legislative ideas related to savings, asset accumulation, and retirement security.
• Assist members in launching or promoting district-based initiatives or events.

Please contact Justin King at the New America Foundation (king@newamerica.net) or Tyler Allard in the office of Representative Jim Cooper (D-TN) (tyler.allard@mail.house.gov) for more information or to join the Caucus.