“Affordability” has become a buzzword in public discourse, but understanding the true nature of the problem is essential before seeking solutions.
Cost of Living vs. Affordability
Gallup polling reveals that 31% of Americans cite the high cost of living or inflation as their top financial concern. Another 13% point to energy costs, 13% to housing costs, and 8% to healthcare costs. However, cost of living and affordability are distinct concepts. Cost of living refers to the prices of goods and services, while affordability relates to one’s ability to pay. A luxury car may be unaffordable for most, but not for billionaires. The key is ensuring that costs do not rise faster than incomes.
The Danger of Big Government Solutions
Senator Bernie Sanders often highlights that U.S. healthcare spending as a share of GDP is double that of other industrialized nations. Yet his proposed remedy—expanding government control—misidentifies the cause. Excessive government intervention, not insufficient, has driven up costs. In a competitive market, efficiency thrives; bureaucracy breeds waste.
Data from the Peterson-KFF Health System Tracker shows U.S. health expenditures rose from 6.9% of GDP in 1970 to 18% in 2024. Meanwhile, out-of-pocket spending dropped from 32.7% to 10.5%, while public insurance jumped from 22% to 42.6%. More government has correlated with higher costs, not lower.
Waste and Fraud
The U.S. Government Accountability Office reported $186 billion in improper federal payments in 2025, up $24 billion from the prior year. Medicare, Medicaid, and SNAP accounted for $104 billion of that total. Such inefficiencies undermine the argument for expanded government programs.
Economic Freedom Matters
Affordability depends not only on prices but also on incomes. The Fraser Institute’s Economic Freedom of the World report finds that the top 25% of countries in economic freedom have per capita incomes 6.2 times higher than the bottom 25%. Poverty rates are 25 times higher in the least free economies. Expanding government intervention risks slowing growth and reducing household purchasing power.
Progressives see rising costs as an opportunity to advance a big government agenda. However, such policies would likely exacerbate cost issues and stifle economic growth, ultimately harming the very people they aim to help.
