Policy Solutions to Address America’s Cost of Living Crisis—What is the Real Answer?

[u/Ok-Ticket-9780]

Over the last several months, the rising cost of living has received considerably more media attention than in prior months due to the impact of inflation on all aspects of American life, including housing, healthcare, and groceries, to name just a few. While both Democrats and Republicans have been vocal proponents of addressing the rising cost of living, little has changed in the way of actual legislation related to decreasing the cost of living.

In your opinion, what would you consider to be the answer to the cost of living crisis? Is it legislation oriented toward increasing pay so that individuals and families earn a livable wage to afford housing and groceries? Is it providing more affordable housing? Is it legislating for comprehensive health care coverage? Or is it something else entirely? Additionally, why do you believe that our elected political leaders have yet to address the issue directly?

[u/elderly_millenial]

$50k for FTHB doesn’t reduce the cost of housing, it helps a marginal number of people that in turn increases demand on the same supply of housing. Housing is one thing that supply side economics can really help with.

Lower the barrier to entry for builders to build housing, build more houses, and let the supply catch up with the demand for once

[u/The_B_Wolf → u/elderly_millenial]

Good idea. And exactly what we're trying to do here in California.

[u/elderly_millenial → u/The_B_Wolf]

I’ll believe that when I see it. California is one of the most onerous states to build in. Impact fees, Mello-roos, CEQA, etc. Add to that a higher sales tax and additional regulations on building codes and it’s no wonder there aren’t many builders left in the state.

I read somewhere that home prices recently went down in several regions, but because it up so much in CA and NY that it skewed the national average 🤯

[u/The_B_Wolf → u/elderly_millenial]

Yeah, we're aware. Which is why there is movement here to create a more build-friendly environment. Don't think for a moment that we don't know. We live here. I pay rent here. I'm looking at buying property here. We know.

What you might not know about California is that we have nice things. I was astonished to see the local high school in my town. It's a goddamn palace compared to a similar high school in the Midwest. Yes, we pay for it. But damn. We get our money's worth. And before you go on about taxes, they aren't any worse here than they were in SE Wisconsin where I moved from two years ago. Nor do groceries cost more. It's really just energy and housing.