Subsidies Inflate Essential Prices

Across housing, healthcare, childcare and some energy markets, government subsidies and entry restrictions can raise consumer prices by shifting demand and protecting incumbents. When subsidies are untargeted (benefitting middle‑ and high‑income groups) they reduce price sensitivity and politically entrench beneficiaries who resist reform. — Framing affordability as primarily a subsidy‑and‑regulation distortion (not only macro growth) concentrates debate on reforming who gets public money and how market entry is governed, with implications for welfare design and anti‑capture strategies.