Is There an Affordability Crisis?

In a recent article, The Economist Magazine noted that “talk about affordability mixes phantom concerns with real ones.” In this episode of EconoFact Chats, Jason Furman argues that “affordability,” which is not well defined, is not necessarily worse now than a year or two ago, or even decades ago. But he notes that there are real concerns as well -- especially with the costs of housing, childcare, and medical care. Jason discusses whether recent policies can address these concerns, and also highlights the scope for government actions to address the rising cost of living. Jason is the Aetna Professor of the Practice of Economic Policy at Harvard. He was previously the Chairman of the Council of Economic Advisers.