Handbook on Affordability

Improving housing affordability requires expanding all types of housing options by removing government-imposed barriers to and cost pressures on new construction.

Improving energy affordability requires easier permitting and more predictable regulation at the federal level and maximizing dynamic competition at the state level to allow new investments to flourish.

Rather than creating yet more government subsidies, policymakers should eliminate supply-side regulations—such as clinician licensing and “certificate of need” laws—that reduce price competition and affordability.

Policymakers could reduce household financial strains by eliminating outdated tariffs, rolling back costly mandates like CAFE standards, and opening transportation markets to new competition.

A better approach to make raising a family more affordable is to remove misguided regulations—such as staff-to-child ratios, worker credential mandates, and visa restrictions—that drive up the costs of childcare.

Policymakers should bolster food affordability by removing measures that prevent markets from functioning most efficiently, such as the US sugar program, meat and dairy trade barriers, and ethanol mandates.

Policymakers could improve affordability by removing artificial restrictions on trade, work, and competition, including by cutting high regressive tariffs on apparel, footwear, and household appliances.

Policymakers should focus on reducing the federal subsidies and regulations that have fueled massive price increases and encouraged the overconsumption of degrees with low market value.

To promote affordability, policies should promote competition and expand consumer choice through increased supply, not impose price ceilings—such as credit card interest rate caps—that shrink credit and force consumers towards other finance.