OPINION:
As Americans come off Labor Day celebrations, policymakers should remember that affordability has two sides: what things cost and what people earn. Sometimes politicians spend too much time talking about the first and not enough about the second.
Affording a house, groceries, childcare, college or a family vacation depends not only on the prices of these things but also on the paychecks that American workers bring home.
Unfortunately, many policymakers’ knee-jerk reactions — such as rent controls, wage floors, credit card interest caps, higher taxes and greater redistribution — fail to address either production costs or Americans’ earning potential.
The best way to increase earnings is through work and productivity gains, which allow American workers to earn more without higher prices. The freedom to work and innovate has fueled 250 years of American prosperity and rising standards of living.
Work and innovation remain the most powerful tools for making life more affordable.
The United States needs more Americans working and earning their own incomes and fewer able-bodied adults without dependents sitting on the sidelines (or their parents’ couches).
After expansions in welfare benefit eligibility, in 2024, taxpayers spent an estimated $56.1 billion on Medicaid for able-bodied, working-age adults without children who worked little or not at all.
Work is not a punishment; it is a way of life.
Every dollar that subsidizes those who choose not to work comes out of the paychecks of hardworking Americans who do go to work every day. Federal policymakers should extend H.R. 1’s work requirements to other welfare programs.
Moreover, the federal government should allow — and states should pursue — Utah’s successful “One Door” welfare-to-workforce model. If the entire U.S. had the same percentage of its population working as Utah does, almost 17 million more Americans would be employed today.
Policymakers should also remove artificial government-imposed barriers to work and higher incomes.
Minimum-wage mandates have almost certainly contributed to the roughly 33% decline in teen employment since 2000, extinguishing what was an essential part of growing up while contributing to higher prices. States should avoid further minimum-wage hikes, and those with minimum wages above the federal minimum should establish subminimum wages for teenagers.
Unnecessary occupational licensing requirements prevent people from using the skills they already have to earn a living. In 1950, only about 5% of jobs required an occupational license; today, it is 22%. Many states impose hefty fees and lengthy training requirements before someone can do something as simple as legally bartend, braid hair or arrange flowers.
Occupational licensing has cost the American economy nearly 1.8 million jobs and raised consumer prices.
States should eliminate unnecessary occupational licenses, reduce excessive education and training requirements, and recognize licenses across state lines.
Although education is important, not everyone needs a costly four-year college education to have a successful career. Apprenticeships provide on-the-job training with a paycheck, but they remain concentrated in the traditional trades.
A Harvard Business School study estimated that apprenticeships could be the pipeline for three times as many occupations and eight times as many jobs as they currently fill. Yet what started as two pages of apprenticeship legislation now spans hundreds of pages of regulations that inhibit new apprenticeships.
Congress and the administration should allow industry-led apprenticeships to develop without the burdensome red tape of registered apprenticeship programs.
Lawmakers should protect the growing number of people who choose independent work. In 2025, an estimated 72.9 million Americans performed independent work — whether full-time, part-time or as a “side hustle.” Flexible work is particularly valuable for parents, caregivers and others who cannot work a traditional 9-to-5 schedule, yet vague, inconsistent definitions of “employee” and “independent contractor” threaten to eliminate many of these opportunities.
Congress should establish a clear, consistent test for independent contractors based on the degree of control an individual exercises over their work.
Last, policymakers should celebrate, not penalize, baby boomers who remain in the workforce. More older Americans are prolonging their working years through transitional retirement or flexible jobs, but Social Security’s retirement earnings test imposes an additional 50% tax on some older workers’ Social Security benefits.
The Senior Citizens’ Freedom to Work Act of 2026 would fix that by eliminating Social Security’s earnings test.
Policymakers should remember that affordability is not just about making things cheaper; it is also about helping Americans earn more. Work-oriented welfare and the removal of barriers to work, entrepreneurship, flexible employment and skills development can increase household incomes and the supply of goods and services.
That means Americans can earn more without prices rising — a double win for affordability.
• Rachel Greszler is a senior research fellow in economics and workforce in the Plymouth Institute for Free Enterprise at Advancing American Freedom.
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