Is it true that living in America has become riskier? In 2006, the political scientist Jacob Hacker published The Great Risk Shift, a progressive tract that appropriated the vocabulary of wealth management to show how thirty years of privatization and deregulation had abraded the security of the American family. Risks once borne by corporations and the government, Hacker noted, like unplanned health costs, are now the responsibility of Mom and Pop. Transferring risk from the collective to the individual, though, ends badly for everyone. Family affliction, like banker “contagion,” is tricky to sequester: if Larry and Terry get bankrupted by bad luck, their misfortune cascades, dragging down creditors, neighbors, and especially their children. The reason liberals like insurance is that it helps diffuse risk throughout society. Pooling risk, one might say, is the essence of the progressive social contract.
