The 2025 American Family Survey shows some shocking sentiments Americans hold about the attainability of the American Dream. Seventy percent believe the cost of raising a family is unaffordable. This skepticism is shared across party lines, income levels, race and ethnicity, impacting marriage rates, birth rates and homeownership. Will this affect public policy?
Cowley: The recent federal government shutdown and brief hiatus of SNAP benefits highlighted just how real these economic constraints are for many Americans. Some of my millennial peers still struggle to afford rent, which means homeownership is a distant dream. This is causing some to delay hopes of marriage, making starting a family even farther from reality. Of all these concerns, the perception that having children is not affordable is the greatest crisis facing the future of our country.
I became an adult during the 2008 economic crisis. I saw firsthand neighbors who lost their jobs, lost their homes and saw their retirement accounts cut in half, seemingly overnight. This experience made me very budget-conscious. Real or self-inflicted through frivolous spending, I am starting to see some of those fiscal fears creep back into many household realities. Lawmakers are incentivized to offer solutions to their constituents’ complaints.
Pignanelli: “Make coffee at home, eat leftovers, drive a reasonable car, and maybe, you’ll realize that life isn’t expensive — it’s just the choices we make that are.” — Tom Greene
This topic prompts me to be the grumpy old curmudgeon commenting on the spending habits of others.
Family and friends are aware of my “attention to costs” (aka cheapness). The combined age of my wife’s and my automobiles almost equals the number of years Renae has been on this planet. I make my own coffee and can provide numerous examples of frugality among my generation. Thus, I believe much of the frustration younger people feel is due to expectations that people my age and older could not fathom.
For half of my life, the inexpensive rotary/push-button phone attached to the wall handled all communication needs. Today, smartphones cost almost $1,000. Yet this expense is unavoidable because our lifestyles are dependent on this device. Technology has benefits … and costs. Indeed, the basic quality standards all citizens demand for air, water, food, housing, public safety and transportation also impact budgets.
Just as politics is undergoing a significant transformation, so are the fundamentals of society. Yet there is only so much government can do without becoming too intrusive. Instead, our leaders must adopt an intelligent regulatory approach while removing barriers to innovation and productivity. The most efficient way to address these problems is through thoughtful economic growth.
How are these numbers impacting Utahns? Will the state Legislature try to do anything about it in the upcoming session?
Cowley: Utah has raked in accolades like “best state to start a business, “best place to raise a family” and more, but inflation has not left Utahns unscathed. The Legislature will introduce numerous bills this session addressing affordability, including gas prices, homeownership, property taxes, energy costs, child care, health care, prevailing wages and more.
The kicker? Most, if not all, will be sponsored by Republicans. For example, Speaker Schultz and Rep. Roberts are attempting to do what no other politician has successfully done before — lower gas prices. Rep. Koford is working on increasing the residential property tax exemption. Rep. Clancy, in his farewell session, is exploring legislation on “area prevailing wage.” Historically, prevailing wage was seen as pro-union, championed by Democrats. This highlights how affordability concerns are shared by both sides of the aisle.
Ironically, billionaire President Trump has made populism a central focus of Republican policies. The rise of populist efforts, though well-intentioned, often comes at the cost of imposing restrictions on businesses. Businesses respond by cutting jobs or making up for lost revenues through other means, exacerbating the underlying problem. Whack-a-mole efforts to lower specific costs ignore economic realities and the ripple effects these policies can have. Utah is a small state, which makes influencing global economic tides extremely difficult. This populist trend could ultimately harm Utah’s pro-business reputation and economy.
Pignanelli: Utah was an early indicator of GOP blue-collar concerns. Ten years ago, house majority leadership, directed by Speaker Greg Hughes, challenged the business community to revise noncompete restrictions and relieve burdens on workers. Freshman lawmaker Mike Schultz sponsored the legislation. This was accompanied by the deregulation of professions to expand opportunities for others seeking employment.
This momentum will likely continue in the upcoming session, as pressure is building on both parties to meet constituents’ demands.
Will this affect the upcoming election?
Cowley: The most fascinating outcome of this study is just how bipartisan affordability concerns are. Democrats and Republicans both will have to come up with solutions to satisfy their bases, but Republicans may have a tougher time crafting these policies while still maintaining their business-friendly, free-market ethos.
Pignanelli: I will be grouchy again. Candidates in either party are a generation younger than me, and their campaign messaging will not include discipline in spending. There will be promises of government action to reduce costs and hopefully expand economic opportunities.
Note: Our firm represents convenience stores, a refinery and commercial property owners who may be impacted by the cited legislation.