The article shows that reducing individual risks along with overall economic risks can lead to significant welfare gains. By considering both types of risks, the study found that stabilizing the economy can have a big positive impact. This can also affect how assets are priced, potentially lowering the risk-free rate. The results depend on how much people fear risks and how flexible the job market is. The study emphasizes the importance of looking at how risks affect both economic growth and people's well-being, as well as how they influence asset prices.