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Affordability Requires Action, Not Talk

Rick Olson affordability, Rick Olson State Senate, Minnesota cost of living, affordability Minnesota, middle class affordability Minnesota, working families Minnesota, affordable housing Minnesota, Shakopee cost of living, Prior Lake cost of living, Jordan MN cost of living

IF YOU WORK FULL-TIME, YOU SHOULD BE ABLE TO AFFORD TO LIVE

My statement: Everyone who works full-time should be able to support themselves and their family.

We can make paychecks stretch further through fair wages, strong tax credits for working families, apprenticeships that lead to good-paying careers, affordable childcare, and enough housing to keep prices lower.

We also need health care people can actually afford. A raise shouldn’t disappear because a child gets sick or someone develops cancer. No single policy change solves the problem, but together they can ensure work once again provides a path into the middle class – and illness shouldn’t knock people back out of it.

YOU WORK HARD. YOU PLAY BY THE RULES. YOU SHOULD BE ABLE TO GET AHEAD.

These are the kinds of financial issues I plan to work on once elected in November. I want to reward work, expand opportunity, and protect financial security. If someone works hard, gets the training they need, and plays by the rules, they shouldn’t be held back because housing costs are out of reach, childcare costs more than a paycheck, or a medical crisis wipes out years of savings.

Background: I am greatly concerned about the increasing wage and wealth gaps between the “haves” and the “have nots”. People having trouble making ends meet while working full time is just not good. To make matters worse, a recent CNN article concluded that the lowest income 20% of households have experienced an inflation factor 10% higher than the average household over the 2005 – mid 2024 period.

I have made a deep dive into various policy changes that might address this gap. No one policy change accomplishes much of a reduction in the gap and each has its pros and cons. Policies considered include:

 

  • Further increasing the MN child and working family credits (broader than the federal earned income tax credit).
  • Raising the state’s minimum wage.
  • Stronger unions.
  • Wage subsidies.
  • Apprenticeships and skill improvements.
Rick Olson affordability, Rick Olson State Senate, Minnesota cost of living, affordability Minnesota, middle class affordability Minnesota, working families Minnesota, affordable housing Minnesota, Shakopee cost of living, Prior Lake cost of living, Jordan MN cost of living
For many home buyers, buying a home is out of reach despite playing by the rules.
  • Affordable childcare.
  • Affordable housing.
  • Profit sharing/Employee ownership.
  • Sectoral bargaining (as in parts of Denmark, Sweden and Germany).
  • Expanding the child tax credit.

Using chatgpt.com as my mentor, it recommends:

“If your goal is reducing inequality rather than simply raising wages, I would rank the options roughly like this:

  1. Expand the Minnesota Earned Income Tax Credit / Working Family Credit.
  2. Invest heavily in apprenticeships and career pathways, especially in construction, health care, manufacturing, and skilled trades.
  3. Expand affordable childcare to make work more accessible.
  4. Increase housing supply to reduce housing costs.
  5. Support collective bargaining where workers choose representation.
  6. Continue modest, predictable minimum wage increases tied to inflation and productivity rather than large, irregular jumps.”

My opening statement captures the main ideas suggested. This approach avoids relying on any one tool and reflects much of the current economic evidence on improving outcomes for lower-wage workers.

How would I choose which options?

First, I will see which of the options have already been implemented, and to what extent.

Then I need to apply my values. I have a balance between compassion and frugality.

WHEN MONEY IS TIGHT, FAMILIES MAKE DO. GOVERNMENT SHOULD UNDERSTAND THAT.

When I grew up, there was a strong ethic of rugged individualism – Horatio Alger from rags to riches stories, “pull yourself up by the bootstraps”, “the self-made man”, etc. Everyone was expected to do all he or she could to help him or herself before expecting help from others. “Freeloaders” were not highly regarded. Money was to be spent VERY carefully and when the money was not available to buy what you wanted, you “made do” with what you had. Much of this conservative philosophy is embedded in my subconscious, which if not overridden by my thinking, would temper my generosity (i.e., less likely to be compassionate).

I have a strong background in economic thinking, based on my Ph.D. program in Agricultural Economics. The incentives built into the free enterprise system are important. But incentives are also important in developing public policy. I would want to encourage people who are in need to do what would be in their long-term self-interest to be self-sufficient. So, I would prefer “hand ups”, rather than “handouts.”

However, I wrote a blog post several years ago concerning the underlying assumptions supporting the capitalist system of which many are not 100% true in real life. There are built in results in the system that can be viewed unfavorably when gone to the extreme.

Affordability, Cost of Living, Middle Class, Working Families, Economic Security, Affordable Housing, Housing Costs, Childcare Costs, Healthcare Costs, Good-Paying Jobs, Minnesota Economy, Shakopee MN, Prior Lake MN, Jordan MN, Rick Olson

The current example is the difference in income and wealth in the society – which is now on steroids. A similar period occurred in the early 1900’s which triggered Teddy Roosevelt’s trustbuster actions. Now we may see a comparable reaction to the extreme wealth of some, especially when that is tied to influence in government policy. This has given rise to proposals of “wealth taxes” and the like from the far left.

I have learned to be compassionate, in part due to my extensive world travel (52 countries), including aiding in the Nakivale Refugee Settlement in Uganda. I believe that Obama was right when he said in Roanoke, Virginia, on July 13, 2012, “If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive.” Some took affront about those remarks interpreted as “You didn’t build that…”. But the point is, we all had help along the way in some manner. For some, it is simply the free enterprise system with a set of laws that protect one’s property, provides certainty which encourages investment and entrepreneurship and rewards achievement. This is a blessing many countries do not provide.

It is still up to us to maintain and create a system of laws which enables people to become all that they can be. Everyone is not equally capable, but everyone can contribute to society in some way. We can reasonably expect each of us to do what we can to help ourselves while collectively we help those who can’t.