Economic security refers to the ability of an individual or a household to meet their basic needs, such as food, shelter, and healthcare, without undue financial stress. It also includes the ability to withstand financial shocks, such as unexpected job loss or medical expenses, without falling into poverty.
There are several factors that contribute to economic security. One is access to stable and well-paying employment. This can be challenging for some individuals, especially those with limited education or job skills, or who live in areas with high unemployment rates.
Another factor is access to affordable housing. Rising housing costs can make it difficult for individuals and families to afford a place to live, leading to homelessness or the need to spend a significant portion of their income on housing.
Other factors that can impact economic security include access to credit and financial services, such as bank accounts and loans, and the availability of social safety net programs, such as unemployment insurance and food assistance.
Governments and organizations around the world have implemented a variety of policies and programs to promote economic security. These can include job training and education programs, minimum wage laws, and social welfare programs.
Economic security is an important aspect of overall well-being and can have a significant impact on an individual’s quality of life. It is important for individuals, governments, and organizations to work together to ensure that everyone has the opportunity to achieve economic security. The following are common types of economic security.
The resilience of systems that provide water for human well-being and economic production. This includes access to water and management of risks such as water pollution and water-related disasters including floods.
Access to a stable and adequate supply of nutritious food for everyone in a community. Management of risks to the food supply such as the risk of a supply chain disruption. For example, a region that grows much of its food locally is more resilient to a dispute that shuts down trade.
Communities with clean air and a low risk of an air quality emergency.
Energy security such as a local system of distributed electricity production based on renewable energy.
Access to shelter and management of risks to shelter such as disasters. For example, a city where everyone has sufficient shelter that is engineered to be resilient to fire, earthquakes and floods.
Basic standards of hygiene such as management of waste. Management of risks to hygiene such as disasters.
Social programs that provide a livable sum of money to all or to all that are in need.
Provisioning of essential public services such as healthcare.
Economic systems that provide a stable system of employment.
Transportation systems and urban environments that aren’t easily disrupted.
Managing the risks of an economic failure such as a recession, depression or period of high inflation or deflation.
Wealth, Debt & Liquidity
The ability of a nation, region, city, community, individual or family to meet its fixed expenses in the short and long term.
The resilience of financial systems. For example, a banking system with adequate reserves and systems for managing risk.
The resilience of markets such as regulations that guarantee free competition.
Measures to protect people and property from physical harm such as a justice system that protects people from crime and infrastructure that protects people from natural disasters.
The security of technology that underlies critical systems such as financial institutions, public services, infrastructure and production.