Judd Gregg: “in his 1991 book ``Assets and the Poor: a New American Welfare Policy,'' Washington University Professor Michael…”

“in his 1991 book ``Assets and the Poor: a New American Welfare Policy,'' Washington University Professor Michael Sherraden argues that people move forward economically through savings and investment, not through spending and consumption. Owning assets gives people a stake in the future--a reason to save, to dream, and to invest time, effort and resources in creating a future for themselves and their children. As Sherraden puts it, ``income may feed people's stomachs, but assets change their heads.'' I am pleased today to be joined by Senator Harkin in introducing legislation designed to further promote innovative asset-building strategies for the poor. Over the past two years, asset-building strategies have gained widespread, bi-partisan support at both the federal and state levels. Legislation has been introduced and laws have been enacted to develop and promote Individual Development Accounts (IDAs) among low income Americans. IDAs reward the monthly savings of working poor families who are trying to buy their first home, pay for post secondary education, or start a business.”