Republicans skirt affordability issue in committee hearing on economy

Only one economic expert called to testify raised the question of whether the booming economy is truly an accurate reflection of the average American’s financial growth, opportunity and prosperity.

Darrick Hamilton, chief economist of the AFL-CIO, the largest federation of unions in the U.S., questioned why the American economy’s health is measured in a way that overlooks the economic situation of the average American taxpayer.

“Aggregate indicators of economic well-being in a context of growing and consolidating concentrations of resources and power at the top depict a misleading characterization of economic health,” Hamilton said in prepared remarks. “It does not capture the actual pain and struggle experienced by everyday Americans.”

Since the COVID-19 pandemic, Americans have faced record-high inflation and gas prices, an increasingly unaffordable housing market, soaring health insurance premiums, and heightened interest rates.

Committee Chairman French Hill, R-Ark., argued that recently implemented regulatory reforms have had widespread positive impacts for both ordinary Americans and the finance industry.

Bills passed by the 119th Congress codifying some of President Donald Trump’s executive orders are “strengthening our capital markets, modernizing regulation, expanding housing supply, supporting community financial institutions, and promoting American leadership in financial innovation,” Hill said.

Representatives present from community financial institutions agreed, with Florida Bankers Association CEO Kathleen Kraninger praising congressional and administrative deregulatory policies supporting community banking.

“America’s banking system is a strategic national asset and a foundation of our free-enterprise economy,” Kraninger stated in preprepared remarks. “When regulation crushes the capacity of a community bank, America loses more than a charter – it loses local knowledge, local decision-making, competition, and a vital engine of economic growth.”

She particularly praised the community banking provisions in the bipartisan 21st Century ROAD to Housing Act, which became law in June.

“The goal is smarter regulation – clear, modern rules, consistent examinations, timely decisions, and requirements calibrated to an institution’s size, complexity, and business model,” Kraninger added. “Smart regulation is not an end in itself, but a major driver that promotes growth, opportunity and prosperity for the American people.”

Also present to testify, New York Stock Exchange (NYSE) President Lynn Martin praised the Securities and Exchange Commission and Congress for recent deregulatory actions boosting American capital markets.

“Global investors turn to our markets when they seek the transparency, liquidity, and rule of law that only the United States can reliably provide,” Martin stated in her prepared remarks. “These competitive advantages are real, but they are not permanent. Regulatory overreach, legal uncertainty, and a failure to embrace responsible innovation are the forces that have historically driven talent, capital, and listings to other jurisdictions.”

Hamilton, from AFL-CIO, however, argued that lawmakers shouldn’t view stock market resiliency as the main indicator of the U.S.’s economic health.

“Our public infrastructure should first and foremost serve and invest in the American people,” Hamilton said. “So, to strengthen the American economy, promote growth, opportunity, and prosperity – and not just any growth, opportunity and prosperity, but an inclusive and just growth, authentic opportunity, and a shared prosperity – I suggest that we invest in our human capabilities, our democratic institutions and collective wellbeing.”