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Institute for Governance and Policy Studies & the School of Government
Abstract
‘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)
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