American families are feeling the squeeze, from higher mortgage rates and rents to rising health care and grocery bills. Although addressing supply frictions in health care and housing—areas in which government rules undeniably raise prices—is helpful, the real driver of widespread cost pressures is federal fiscal policy. Persistent deficits, excessive emergency spending, and decades of debt-financed entitlement programs have pushed interest rates higher, crowded out private investment, and amplified inflationary pressures, all while making life more expensive for households across the country.
This congressional staff briefing will explain how short-sighted fiscal policy decisions directly affect affordability and why micro-level fixes, no matter how beneficial, cannot solve the underlying problem on their own. Experts from the Cato Institute will outline practical, bipartisan steps Congress can take to stabilize debt, rein in entitlement growth, and restore long-term economic stability. If enacted, these reforms would provide American families with relief from the underlying drivers of the affordability crisis while strengthening the foundation for sustainable economic growth.
