When someone tells you that they are struggling, it is generally a good rule of thumb to take them seriously. So it was not the best political move for President Donald Trump to call the affordability issue a “hoax.” Too many Americans are trying to cope with rising food prices and high costs for housing, health care and child care.
At the same time, it is important to note that there is not a widespread “affordability crisis” in the US. Some people are truly unable to keep up with basic necessities. Some have high expectations that their incomes can’t meet. And some are doing fine.
Affordability has been an issue for years, but it became an acute problem when inflation spiked after the pandemic and there was a drop in real income. Inflation is still high, about 3%. But real income growth is still positive for most Americans, suggesting that income is rising to cover many of the goods and services that are increasing in price.
Continue reading the entire piece here at Bloomberg Opinion (paywall)
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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
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