Report released by Dēmos and People’s Action Institute links the affordability crisis to the erosion of democracy and provides solutions to solve it
FOR IMMEDIATE RELEASE: June 11, 2026
Washington, D.C. – Today, Dēmos and People’s Action Institute released Solving the Affordability Crisis: A Plan for a People-Powered, Racially Just Economy. Families across the United States are struggling to afford the basics with the rising cost of living and stagnant wages. New data shows inflation surging to a three-year high, and energy costs spiked nearly 18 percent since last year.
The report demonstrates the connection between democracy and affordability and the consequences of policy decisions that allowed corporations and the ultra-wealthy to concentrate power and raise prices.
Researchers focused on drivers behind the growing gap between wages and the costs of housing, health care, food, energy and utilities, and child care and care work. Examining political and economic forces, the report finds that the affordability crisis is the result of policy choices–and it is solvable.
“The affordability crisis didn’t happen by accident,” said Daniella Zessoules, Senior Policy Analyst at Dēmos. “For decades, policymakers have allowed the systems people rely on — from housing and health care to food and energy — to become organized around profit rather than access and affordability. The result is an economy where people are struggling to afford the basics at the same time that wealth and power is becoming increasingly concentrated at the top. But because these conditions are the result of policy choices, they can also be changed through different choices.”
As the affordability crisis worsens, the stakes for policymakers and U.S. families are growing, particularly for Black and brown families who have been systemically excluded from building generational wealth, leaving many with fewer assets and savings to draw on when costs rise.
“The economic reality American families are facing today is the result of decades of budget, tax, and policy decisions that have concentrated money and political power in the hands of the few,” said Eliana Golding, Associate Director, Budget and Tax Policy at Dēmos. “History has shown that a more inclusive, racially just economy is possible through organizing and social movements that address economic demands and give people decision making power back in our democracy.”
The report will be released ahead of the first People’s Affordability & Democracy Summit hosted by People’s Action Institute June 12-15. Advocates, organizers, and policy experts from across the country will convene in Las Vegas to chart a path forward through 2026 and beyond.
“There is a fundamental problem when the billionaire class has nearly twice as much wealth as the bottom half of the country,” said Sulma Arias, Executive Director of People’s Action Institute. “Extreme inequality bolsters authoritarianism, but it can also spark collective action. No one should have to work three or more jobs to survive, or die because they cannot afford medicine, a place to live, or air conditioning. The fight for affordability and democracy go hand-in-hand, and it is a fight we can win.”
People’s Action Institute is a national network of member-led, power-building organizations with more than a million members and tens of thousands of national volunteers. We are from every background, speak many languages, and live in small towns, cities and rural areas. We are all of us! Learn more about our work at peoplesactioninstitute.org.
Dēmos is a non-profit public policy organization working to build a just, inclusive, multiracial democracy and economy. We work hand in hand to build power with and for Black and brown communities, forging strategic alliances with grassroots and state-based organizations.