Open AccessIncome volatility in New Zealand
Author(s) -
T. J. T. Moore
Publication year - 2017
Publication title -
policy quarterly
Language(s) - English
Resource type - Journals
eISSN - 2324-1101
pISSN - 2324-1098
DOI - 10.26686/pq.v13i4.4609
Subject(s) - luck , hacker , volatility (finance) , politics , welfare , economics , economic welfare , political economy , financial economics , political science , market economy , law , computer security , philosophy , theology , computer science
‘Economic risk is a lot like a hurricane. Hurricanes strike powerfully and suddenly. They rip apart what they touch; property, landscape and lives … And although they can be prepared for, they cannot be prevented.’ These sentiments, from Yale political scientist Jacob Hacker, explain why economic risk is a concern for households, and why the extent of that concern depends a great deal on how well households are protected against risk. The potential for individual bad luck to lead to hardship has meant that society has, in many instances, determined that individual risk should be borne collectively through systems of social welfare or social insurance (Hacker, 2008, p.5).