Economists Say Politicians Aren't Helping Affordability

TL;DR

Politicians' popular affordability fixes — price caps, rent freezes, tax cuts — backfire according to economists, who say income growth and unions are the real solutions.

Key Points

• 1.Politicians' affordability proposals repulse economists despite voter appeal. Measures like 50-year mortgages, grocery price caps, rent freezes, credit card interest caps, and suspending the gas tax are described by Cato Institute VP Scott Lincicome as 'eternally seductive' but economically counterproductive.
• 2.Each popular policy fix carries hidden consequences economists warn about. Capping grocery prices could reduce supply and close stores (per EPI chief economist Josh Bivens); rent control discourages landlord investment; freezing seniors' property taxes raises bills for everyone else; capping credit card rates restricts low-income access to credit.
• 3.Economists argue the real solution is raising incomes, not suppressing prices. Experts recommend reducing unemployment and strengthening unions instead; Harvard economist Jason Furman, who led Obama's Council of Economic Advisers, warned there are 'more bad economic ideas than before' because people are trying to solve a problem with no easy solution.
• 4.Big business influence over politicians is distorting economic policy away from ordinary people. The Trump family has reportedly made nearly $4 billion from the presidency in one year; tariffs have destabilized businesses; Biden advisor Neera Tanden said no president in her lifetime has interfered with markets more, while corporate campaign funding keeps policy disconnected from everyday economic needs.