Americans face many affordability challenges. High inflation, increasing interest rates, rising housing costs, growing health costs, elevated gas prices, and uneven wage growth are putting significant pressure on household budgets. Many Americans report the high cost of living as the biggest obstacle to their aspirations.

Whereas many proposals that claim to improve affordability merely shift costs – and sometimes increase costs in the process – thoughtful fiscal improvements can meaningfully reduce cost-of-living burdens and boost income growth. In this paper, we explain how responsible fiscal policy rooted in thoughtful near- and long-term deficit reduction can improve affordability.  […]