How to Fix Washington's Affordability Crisis

The Cato Podcast episode 'How to Fix Washington's Affordability Crisis' examines the multifaceted nature of rising living costs in the U.S., arguing that what is commonly labeled an 'affordability crisis' is actually a bundle of distinct issues: inflation driven by macroeconomic policy, supply-side bottlenecks in housing and food, and structural regulations that artificially inflate prices. Host Ryan Bourne, joined by Cato Institute scholars Jay Keedia, Colin Grabo, and Steve Slavinsky, critiques Washington’s tendency to respond with short-term fixes like price controls and subsidies, which often distort markets and fail to address root causes. Instead, the episode champions a two-pronged strategy: first, rule-based monetary policy and responsible fiscal discipline to curb inflation; second, sweeping supply-side reforms—such as easing zoning restrictions, eliminating harmful tariffs, reforming the Jones Act, and loosening immigration and labor regulations—to increase competition and lower costs across housing, food, transport, and other essentials. The discussion underscores that lasting affordability requires systemic change, not political band-aids.