The Cost of Living Crisis: Myths and Realities

We are living in the richest era in human history, yet many young people feel financially trapped. Burdened by student loan debt, priced out of housing markets, and strained by the rising cost of childcare, younger generations often question whether the free market has failed them. Some believe only strong government intervention can restore fairness and opportunity. In this lecture, Anne Bradley explores the realities behind today’s cost of living crisis, focusing on housing, higher education, and daycare. Are markets truly to blame for rising costs, or have well intended policies limited supply and driven prices higher? This talk examines how institutions shape incentives, expand or restrict opportunity, and offers a principled path forward that promotes opportunity, responsibility, and human flourishing.

Recommended Readings:

Bourne, Ryan A., ed. The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy. Washington, DC: Cato Institute, 2024.

The Cato Institute Handbook on Affordability, edited by Ryan Bourne.

Holcombe, Randall G., and Benjamin Powell, eds. Housing America: Building Out of a Crisis. Oakland, CA: The Independent Institute, 2009.

Tupy, Marian L., and Gale L. Pooley. Superabundance: The Story of Population Growth, Innovation, and Human Flourishing on an Infinitely Bountiful Planet. Washington, DC: Cato Institute, 2022.