‘Affordability’: Consumer Concerns and Government Proposals

The podcast explores the perceived affordability crisis in the U.S., questioning why it's a salient political issue despite real income being largely on its pre-pandemic trend across income quintiles. The discussion highlights housing, particularly owner-occupied housing, as the primary area where affordability is genuinely strained due to rising prices and mortgage rates. The administration's reactive approach, focusing on specific high-frequency purchases like eggs and cars, is examined alongside measures to address housing affordability, such as MBS purchases and potential zoning reforms. The podcast further considers potential actions related to prescription drugs, credit card interest rates, and the possibility of a second fiscal package, while also noting the limited unilateral power of the executive branch to implement many proposed changes.