258. How Is Government Spending Affecting Your Wallet? | This Week's Economy Ep. 64 🎙️

Unpacking Housing Affordability, Capitalism, and the Real Costs of Excessive Spending.

Hello Friends!

Welcome to Episode 64 of "This Week's Economy." Today, we're diving into key national and state economic issues, including the challenges in the housing market, the national debt crisis, and the latest jobs report.

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Louisiana's Big Move

• Louisiana passes universal school choice, making it more than 10 states with this policy. Texas must pass universal school choice next session in 2025.

• Read more.

Housing Affordability

• In a Redfin survey, 91% of Gen Z (ages 18-27) consider housing affordability a crucial factor in choosing the next president. This highlights the growing concern among young voters about the housing market's accessibility.

• Only 26% of Gen Zers own homes, as housing prices have surged over 40% since before the pandemic. This makes it challenging for first-time buyers to secure a home without equity from previous sales.

• Excessive government intervention contributed to higher housing prices, interest rates, and general inflation, making the housing market less affordable. More government intervention isn't the solution; rather, reducing these barriers is essential to increasing supply and affordability.

• Read more on housing affordability.

Talking Points for Friday's Jobs Report

• Recent job reports show less stellar headline figures, with significant increases in part-time work and declines in full-time positions. This indicates a shift in job quality and stability.

• Inflation-adjusted purchasing power is falling, meaning workers' earnings are not keeping up with rising costs, undermining overall economic well-being. The household survey reveals flat to declining job creation, and labor force participation remains subdued, reflecting deeper labor market weaknesses.

• Years of flawed Keynesian, big-government policies have contributed to these issues. We need a return to pro-growth policies that remove barriers to work and address bloated deficits, thereby reducing interest rates and inflation.

• I’ll be on Mornings With Maria on Fox Business from 7:20-8 am CT on Friday, June 7, to discuss the latest jobs report.

• More on Friday's jobs report.

Reforming the FDIC

• The FDIC's extensive and convoluted regulations hinder bank operations, reduce efficiency, and increase consumer costs. Streamlining these regulations can foster a more competitive and dynamic financial sector.

• FDIC Chair Martin Gruenberg faces allegations of workplace misconduct and a toxic culture, forcing him to announce his resignation. Addressing these internal issues is crucial for restoring public trust and ensuring effective governance. Rising compliance costs burden small and mid-sized banks, driving industry consolidation and limiting competition.

• Reducing these burdens can spur significant economic growth and benefit consumers. Congress should reform the toxic culture within the FDIC and the broader regulatory framework. Increasing transparency, reducing political influence, and providing regulatory relief for smaller banks will enhance competition and improve service delivery.

• Read more on FDIC reforms.

America Should Focus on Spending Less, Not Tax Hikes

• Despite what folks like Oren Cass and other old progressives want to do and claim about recent economic policy, more government isn't the answer.

• Overwhelming research and evidence prove that raising taxes and less economic growth will not solve our budget woes; the path to sustainable economic growth and fiscal health lies in reducing government spending and implementing pro-growth policies that foster innovation, entrepreneurship, and efficient resource allocation.

• More insights here.

Media Hits

• The War on Prices: Don’t miss my commentary at the American Institute for Economic Research on Ryan Bourne’s book.

• Housing Market on KTRH News: I recently discussed the housing market challenges on KTRH News in Houston, highlighting the need to reduce regulatory burdens to make housing more affordable.

• US Jobs Report on Fox Business: I appeared on Fox Business with Maria Bartiromo on the Mornings with Maria show to discuss the latest US jobs report and what it means for the economy.

• National Debt Issue on Freedom Works: I joined Freedom Works on The Paul Molloy Show to discuss the national debt and excessive spending crisis and what it means to you. Read more.

Let People Prosper Show

• Don't miss the latest episode of the Let People Prosper Show, Episode 99, with Dr. Judge Glock, which covers the housing and local debt crises.

• The upcoming Let People Prosper Show on Monday will be episode 100 with Dr. Norm Horn of the Libertarian Christian Institute as we dive into many topics, including free markets, capitalism, trade, environment, religion, politics, and more.

Quote of the Week

Here’s a great quote by Milton Friedman about the importance of spending less.

Bible Verse of the Week

Conclusion

• Thanks for tuning in to Episode 64 of "This Week's Economy." We've covered a lot of ground today, from national issues like inflation and the housing market to state-specific developments in Texas.

• Please like, subscribe, and share this episode. For more insights, visit vanceginn.substack.com and vanceginn.com.

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