American Experiment releases affordability agenda
With affordability the new buzzword for state and national politicians, Center of the American Experiment issued a new report today full of concrete steps policymakers can take to make Minnesota more affordable. The report includes a comprehensive list of 41 specific policy changes beginning with taxes and spending and extending to housing, utilities, health care, childcare, occupational licensing and education. The agenda, titled Supplying Hope and Demanding Real Affordability, is authored by American Experiment Economists John Phelan and Martha Njolomole along with Healthcare Policy Fellow Matt Dean, Education Policy Fellow Catrin Wigfall, and Policy Fellow Bill Glahn.
Understanding that affordability is impacted by factors outside of Minnesota, the report focuses on topics directly influenced by state government. Affordability for Minnesotans is most directly impacted by state tax and regulatory policies so reducing the cost of state government by cutting tax rates is the first step towards affordability. The second step involves identifying state policies that artificially restrict the supply of goods and services, exacerbating the affordability of those services. As the report outlines, this economic reality drives Minnesota’s misguided policymaking in housing, utilities, healthcare, and childcare.
“Minnesotans deserve real solutions to the very real problem of affordability,” said report author John Phelan. “While we can’t do much about the Federal Reserve, we can certainly lower taxes and stop pretending that throwing money at problems like childcare and housing shortages will actually solve anything.”
According to the December 2025 Thinking Minnesota Poll, only six percent of Minnesotans said their income was going up faster than the cost of living, while 60 percent said it was falling behind. More Minnesotans — 33 percent — told us they were “worse off” than last year, compared with 18 percent who said they were “better off.” Seventy-four percent of respondents told us they were concerned about the cost of healthcare, 47 percent about monthly bills such as electricity and heat, 42 percent about gas or car care, and 18 percent said childcare, all areas where state government policy can have either a positive or negative impact.
Affordability problems are worse in Minnesota than in the average or comparable state. Our taxes are relatively high; our housing is relatively expensive; our energy is relatively costly; our healthcare is now ranked 15th in the country in terms of cost and quality. Supplying Hope and Demanding Real Affordability not only answers why these things are expensive, but more importantly why they are more expensive in Minnesota.
To read the entire report, click here.