Employment Does Not Guarantee Affordability
Employment is one indicator of the health of the U.S. economy. As of August 2026, the unemployment rate was 4.1%, within the 4.0% to 5.0% range often associated with a strong, stable economy. Yet that figure does not show whether working people can afford daily life. Housing, utilities, groceries, healthcare, and childcare continue to strain household budgets because wages have not kept pace with rising costs. As families devote more of their income to necessities, discretionary expenses such as movies and vacations are increasingly postponed. In short, a healthy employment rate does not necessarily mean that life is affordable.
Affordability as a Public Policy Challenge
What can be done to improve affordability, and who is responsible for doing it? Although unaffordable living costs create serious problems for individuals, affordability is not merely an individual problem; it is a societal one. When wages fail to keep pace with essential expenses, the economy is not serving its people well. That concern is reflected in a recent Gallup poll in which only 21% of respondents rated the economy as good or excellent. Political leaders and policymakers therefore have a responsibility to pursue measures that strengthen the economy and improve its ability to meet the needs of most Americans.
A Policy Example: The National School Lunch Program
Public policy can improve affordability by instituting programs that reduce the cost of essential goods and services. Existing programs demonstrate how targeted government action can ease household expenses while advancing broader social goals.
The National School Lunch Program (NSLP) offers one example of such a program. Signed into law by President Harry Truman in 1946 and administered by the USDA’s Food and Nutrition Service, the program seeks to reduce childhood hunger, support good nutrition, and help children arrive at school ready to learn. As Truman observed, “In the long run, no nation is any healthier than its children…” The program also makes life more affordable for eligible families by reducing the amount they must spend on groceries.
The Need for Broader Action
The National School Lunch Program is one example of how public policy can make essential costs more manageable for families. We must maintain this program and institute additional measures needed to address rising prices, continued inflation, and stagnant income growth. The challenge is not a lack of possible solutions, but the political will to identify and enact them.