The Cato Institute

# Handbook on Affordability 

![Illustration of cart filled with household items.](/sites/cato.org/files/styles/aside_3x/public/2026-04/Handbook-Affordability_cart.jpg?itok=4evJZUzu) 

[![Handbook on Affordability](/sites/cato.org/files/styles/aside_mobile/public/2026-04/Handbook-on-Affordability-cover%20w%20border.jpg?itok=z9H0Wnut)](https://www.cato.org/sites/cato.org/files/2026-04/Handbook-on-Affordability_web.pdf) 

[Download PDF](</sites/cato.org/files/2026-04/Affordability Handbook_web.pdf>) 

### [Introduction](/handbook-affordability/introduction) 

By [Ryan Bourne](/people/ryan-bourne) 

Washington, DC, has deemed 2026 “[the year of affordability](https://www.politico.com/newsletters/playbook/2025/12/31/the-year-of-affordability-begins-00708410).” Inflation and the cost of living are Americans’ [number one concern](https://echelonin.wpenginepowered.com/wp-content/uploads/December-2025-Omnibus-Topline-External.pdf). After experiencing the highest inflation since 1981, voters remain livid that, by January 2026, consumer prices had climbed [24 percent](https://fred.stlouisfed.org/series/CPIAUCSL) in just five years, while interest rates on [mortgages](https://fred.stlouisfed.org/series/MORTGAGE30US), [car loans](https://fred.stlouisfed.org/series/RIELPCFAUNQ#:~:text=Table_content:%20header:%20%7C%20Q4%202024:%20%7C%2016.54,2024::%20Q4%202023:%20%7C%2016.54:%2015.88%20%7C), and [credit cards](https://fred.stlouisfed.org/series/TERMCBCCALLNS) also rose sharply.

[Continue reading](/handbook-affordability/introduction) 

#### Part One 

[![Illustration of coins.](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Monetary_List.jpg?itok=dmPQSkzu)](https://www.cato.org/handbook-affordability/monetary-policy) 

Publications 

### [Monetary Policy](/handbook-affordability/monetary-policy) 

By [Norbert J. Michel](https://www.cato.org/people/norbert-michel) and [Jai Kedia](https://www.cato.org/people/jai-kedia) 

Congress should narrow the Fed’s responsibilities and bind it to transparent, objective, rules-based monetary policy to anchor inflation expectations and reduce policy-driven volatility.

[![Illustration of the US Capitol building.](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Fiscal_List.jpg?itok=1o0Qhfbm)](https://www.cato.org/handbook-affordability/fiscal-policy) 

Publications 

### [Fiscal Policy](/handbook-affordability/fiscal-policy) 

By [Romina Boccia](https://www.cato.org/people/romina-boccia) and [Dominik Lett](https://www.cato.org/people/dominik-lett) 

Congress should reduce deficits and reform unsustainable health care and retirement programs to stabilize the debt and help keep inflation expectations stable.

#### Part Two 

[![Illustration of house.](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Housing_List.jpg?itok=sSsOam0r)](https://www.cato.org/handbook-affordability/housing) 

Publications 

### [Housing](/handbook-affordability/housing) 

By [Stephen Slivinski](https://www.cato.org/people/stephen-slivinski) 

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

[![Illustration of a light bulb.](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Energy_List.jpg?itok=mLdjwP6P)](https://www.cato.org/handbook-affordability/energy) 

Publications 

### [Energy](/handbook-affordability/energy) 

By [Travis Fisher](https://www.cato.org/people/travis-fisher) 

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.

[![Illustration of prescription pill bottle.](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Healthcare_List.jpg?itok=a3Yg5pMa)](https://www.cato.org/handbook-affordability/health-care) 

Publications 

### [Health Care](/handbook-affordability/health-care) 

By [Michael F. Cannon](https://www.cato.org/people/michael-f-cannon) and [Jeffrey A. Singer](https://www.cato.org/people/jeffrey-singer) 

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.

[![Illustration of a tire.](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Transportation_List.jpg?itok=jWM3I5PA)](https://www.cato.org/handbook-affordability/transportation) 

Publications 

### [Transportation](/handbook-affordability/transportation) 

By [Colin Grabow](https://www.cato.org/people/colin-grabow) 

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

[![Illustration of a baby bottle.](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Childcare_List.jpg?itok=--XbROk5)](https://www.cato.org/handbook-affordability/childcare-child-raising) 

Publications 

### [Childcare and Child Raising](/handbook-affordability/childcare-child-raising) 

By [Chelsea Follett](https://www.cato.org/people/chelsea-follett) 

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.

[![Illustration of groceries](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Food_List.jpg?itok=BTPcJ0SR)](https://www.cato.org/handbook-affordability/food) 

Publications 

### [Food](/handbook-affordability/food) 

By [Colin Grabow](https://www.cato.org/people/colin-grabow) 

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.

[![Illustration of jeans. ](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Clothing_List.jpg?itok=0dw-pn1G)](https://www.cato.org/handbook-affordability/clothing-household-goods-labor-services) 

Publications 

### [Clothing, Household Goods, and Labor Services](/handbook-affordability/clothing-household-goods-labor-services) 

By [Scott Lincicome](https://www.cato.org/people/scott-lincicome) and [Stephen Slivinski](https://www.cato.org/people/stephen-slivinski) 

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.

[![Illustration of graduation cap.](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Higher-ed_List.jpg?itok=q1ix5FeV)](https://www.cato.org/handbook-affordability/higher-education) 

Publications 

### [Higher Education](/handbook-affordability/higher-education) 

By [Andrew Gillen](https://www.cato.org/people/andrew-gillen) 

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.

[![Illustration of billfold.](/sites/cato.org/files/styles/content_teaser/public/2026-04/Affordability-Consumer_List.jpg?itok=lgGErtaZ)](https://www.cato.org/handbook-affordability/consumer-financial-services) 

Publications 

### [Consumer Financial Services](/handbook-affordability/consumer-financial-services) 

By [Norbert J. Michel](https://www.cato.org/people/norbert-michel) and [Solveig Singleton](https://www.cato.org/people/solveig-singleton) 

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.

##### About the Contributors 

[![Ryan Bourne](/sites/cato.org/files/styles/author_picture/public/2021-01/Ryan%20Bourne.jpg?itok=nv8-2r7d)](/people/ryan-bourne) 

##### [Ryan Bourne](/people/ryan-bourne)

R. Evan Scharf Chair for the Public Understanding of Economics, Cato Institute

[ 

](https://x.com/MrRBourne) [ 

](mailto:rbourne@cato.org) 

[![Romina-Boccia-cropped2.jpg](/sites/cato.org/files/styles/author_picture/public/2022-09/Romina-Boccia-cropped2.jpg?itok=7drYb2ok)](/people/romina-boccia) 

##### [Romina Boccia](/people/romina-boccia)

Director of Budget and Entitlement Policy, Cato Institute

[ 

](https://x.com/RominaBoccia) 

[![Michael F. Cannon](/sites/cato.org/files/styles/author_picture/public/2021-01/Michael%20Cannon.jpg?itok=0UROn8Dc)](/people/michael-f-cannon) 

##### [Michael F. Cannon](/people/michael-f-cannon)

Director of Health Policy Studies, Cato Institute

[ 

](https://x.com/mfcannon) [ 

](mailto:mcannon@cato.org) 

[![Travis Fisher - cropped](/sites/cato.org/files/styles/author_picture/public/2023-09/travis-fisher-cropped.jpg?itok=wFuUAHy-)](/people/travis-fisher) 

##### [Travis Fisher](/people/travis-fisher)

Director of Energy and Environmental Policy Studies, Cato Institute

[ 

](https://x.com/ts_fisher) 

[![Chelsea Follett](/sites/cato.org/files/styles/author_picture/public/2021-01/Chelsea%20Follett.jpg?itok=t0sPC8WK)](/people/chelsea-follett) 

##### [Chelsea Follett](/people/chelsea-follett)

Managing Editor, Human​Progress​.org, Cato Institute

[ 

](https://x.com/chellivia) [ 

](mailto:cfollett@cato.org) 

[![Andrew Gillen - cropped](/sites/cato.org/files/styles/author_picture/public/2024-04/andrew-gillen-cropped.jpg?itok=uRHLF979)](/people/andrew-gillen) 

##### [Andrew Gillen](/people/andrew-gillen)

Research Fellow, Cato Institute

[ 

](https://twitter.com/Gillen_Andrew_J) 

[![Colin Grabow](/sites/cato.org/files/styles/author_picture/public/2021-01/Colin%20Grabow.jpg?itok=pNkGPWw4)](/people/colin-grabow) 

##### [Colin Grabow](/people/colin-grabow)

Associate Director, Herbert A. Stiefel Center for Trade Policy Studies

[ 

](https://x.com/cpgrabow) 

[![jai-kedia-cropped.jpg](/sites/cato.org/files/styles/author_picture/public/2023-07/jai-kedia-cropped.jpg?itok=In6dB8gW)](/people/jai-kedia) 

##### [Jai Kedia](/people/jai-kedia)

Research Fellow, Center for Monetary and Financial Alternatives, Cato Institute

[ 

](https://x.com/jaikedia) 

[![Dominik Lee cropped](/sites/cato.org/files/styles/author_picture/public/2025-03/dominik-lett%20Cropped.jpg?itok=45gTbBqN)](/people/dominik-lett) 

##### [Dominik Lett](/people/dominik-lett)

Policy Analyst, Cato Institute

[ 

](https://x.com/LettDominik) 

[![Scott Lincicome cropped](/sites/cato.org/files/styles/author_picture/public/2023-10/scott-lincicome-square.jpg?itok=qnTH2GB_)](/people/scott-lincicome) 

##### [Scott Lincicome](/people/scott-lincicome)

Vice President, General Economics and Stiefel Trade Policy Center, Cato Institute

[ 

](https://x.com/scottlincicome) [ 

](mailto:slincicome@cato.org) 

[![Norbert Michel Cropped](/sites/cato.org/files/styles/author_picture/public/2025-01/norbert-m-cropped.jpg?itok=8WIx97Dk)](/people/norbert-michel) 

##### [Norbert J. Michel](/people/norbert-michel)

Vice President and Director, Center for Monetary and Financial Alternatives, Cato Institute

[ 

](https://x.com/norbertjmichel) 

[![jeff-singer-cropped.jpg](/sites/cato.org/files/styles/author_picture/public/2024-05/jeff-singer-cropped.jpg?itok=G_0nEnx7)](/people/jeffrey-singer) 

##### [Jeffrey A. Singer](/people/jeffrey-singer)

Senior Fellow, Cato Institute

[ 

](https://x.com/dr4liberty) [ 

](mailto:jsinger@cato.org) 

[![Solveig Singleton--cropped-2](/sites/cato.org/files/styles/author_picture/public/2025-06/Solveig%20Singleton--cropped-2.jpg?itok=c6fGGYKN)](/people/solveig-singleton) 

##### [Solveig Singleton](/people/solveig-singleton)

Policy Analyst, Center for Monetary and Financial Alternatives, Cato Institute

[![Stephen Slivinski headshot square](/sites/cato.org/files/styles/author_picture/public/2024-11/Stephen-Slivinski-cropped.jpg?itok=xRn0hmcD)](/people/stephen-slivinski) 

##### [Stephen Slivinski](/people/stephen-slivinski)

Senior Fellow, Cato Institute

[ 

](https://x.com/sslivinski) [ 

](mailto:sslivinski@cato.org)