Much ink has been spilled recently on talks about updating the U.S. poverty line to $140,000. Rising costs for housing and essential services like childcare are used to justify the need to rethink who needs a helping hand from the federal government.
Any debate on this topic is missing a crucial point. We don’t need to move the goalposts and expand the pool of U.S. citizens who are dependent on the federal government. Work is critical for citizens to have good mental health and existential agency.
We propose instead that the debate should pivot to how state policymakers can promote social mobility and improve the lives of working-age American citizens and the lives of their children without contributing to our ever-growing federal debt.
Last year, the Archbridge Institute released its 2025 edition of Social Mobility in the 50 states. The report ranks all 50 states based on the policies and barriers that allow, or hamper, people’s ability to achieve social mobility. The report is based on four broad pillars: Entrepreneurship and Economic Growth, Institutions and Rule of Law, Education and Skills Development, and Social Capital.
Utah is ranked nationally as having the best environment for producing upward social mobility. Louisiana has the worst environment. California, New York, and Texas find themselves in the bottom 10, while the top 10 includes states like Idaho and Colorado.
How can states improve on their ranking and make sure that they set their citizens up for success?
Paring back unnecessary occupational licensing requirements would be one way to do this. Occupational licensing affects more than one in five workers and has been shown to impose more costs than benefits on citizens. States like Alabama, Arkansas, and Texas score very poorly nationally with respect to their occupational licensing restrictions. Eliminating unnecessary occupational licensing requirements would free up labor markets and help citizens climb the economic ladder.
Burdensome zoning regulations are making housing more unaffordable and reducing rental options for families. According to the American Community Survey, nearly half of renters are cost-burdened as a result of what they are paying for rent. States that score very poorly nationally on land use regulation include California and New York. Reducing red tape that reduces housing supply can go a long way in helping alleviate this burden.
Soaring childcare costs also place financial burden on families. They might also keep some parents out of the workforce. Child safety is obviously critical, but regulations should not be constructed in such a way that they keep able and willing providers out of the market. Across states, there are large differences in child staffing ratios, group size, and education requirements for childcare center staff. Idaho has very lenient childcare facility regulations overall relative to other states. There is no evidence that parents or children are being hurt by this, but instead parents have more choices and childcare is more affordable.
If policymakers are serious about improving the lives of their citizens and setting the stage for future prosperity, there is no need to redefine poverty and make more citizens dependent on Uncle Sam. Instead, common-sense reforms that will help spark prosperity are sorely needed.
More opportunities mean more career choices, which provides agency and social mobility—all at no expense to the taxpayer.
This article was originally published by American Thinker.
Justin Callais, PhD, is Chief Economist at the Archbridge Institute. He leads the institute's "Social Mobility in the 50 States" project and conducts original research on economic development, upward mobility, and economic freedom. Dr. Callais received his Ph.D. in economics from Texas Tech University and his B.B.A. in economics from Loyola University New Orleans. He serves as an economic consultant at Callais Capital Management, and he is co-editor of Profectus Magazine, an online publication dedicated to human progress and flourishing. In addition, he publishes a regular newsletter on Substack titled "Debunking Degrowth."
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
Economics of Flourishing
Much ink has been spilled recently on talks about updating the U.S. poverty line to $140,000. Rising costs for housing and essential services like childcare are used to justify the need to rethink who needs a helping hand from the federal government.
Any debate on this topic is missing a crucial point. We don’t need to move the goalposts and expand the pool of U.S. citizens who are dependent on the federal government. Work is critical for citizens to have good mental health and existential agency.
We propose instead that the debate should pivot to how state policymakers can promote social mobility and improve the lives of working-age American citizens and the lives of their children without contributing to our ever-growing federal debt.
Last year, the Archbridge Institute released its 2025 edition of Social Mobility in the 50 states. The report ranks all 50 states based on the policies and barriers that allow, or hamper, people’s ability to achieve social mobility. The report is based on four broad pillars: Entrepreneurship and Economic Growth, Institutions and Rule of Law, Education and Skills Development, and Social Capital.
Utah is ranked nationally as having the best environment for producing upward social mobility. Louisiana has the worst environment. California, New York, and Texas find themselves in the bottom 10, while the top 10 includes states like Idaho and Colorado.
How can states improve on their ranking and make sure that they set their citizens up for success?
Paring back unnecessary occupational licensing requirements would be one way to do this. Occupational licensing affects more than one in five workers and has been shown to impose more costs than benefits on citizens. States like Alabama, Arkansas, and Texas score very poorly nationally with respect to their occupational licensing restrictions. Eliminating unnecessary occupational licensing requirements would free up labor markets and help citizens climb the economic ladder.
Burdensome zoning regulations are making housing more unaffordable and reducing rental options for families. According to the American Community Survey, nearly half of renters are cost-burdened as a result of what they are paying for rent. States that score very poorly nationally on land use regulation include California and New York. Reducing red tape that reduces housing supply can go a long way in helping alleviate this burden.
Soaring childcare costs also place financial burden on families. They might also keep some parents out of the workforce. Child safety is obviously critical, but regulations should not be constructed in such a way that they keep able and willing providers out of the market. Across states, there are large differences in child staffing ratios, group size, and education requirements for childcare center staff. Idaho has very lenient childcare facility regulations overall relative to other states. There is no evidence that parents or children are being hurt by this, but instead parents have more choices and childcare is more affordable.
If policymakers are serious about improving the lives of their citizens and setting the stage for future prosperity, there is no need to redefine poverty and make more citizens dependent on Uncle Sam. Instead, common-sense reforms that will help spark prosperity are sorely needed.
More opportunities mean more career choices, which provides agency and social mobility—all at no expense to the taxpayer.
This article was originally published by American Thinker.
Justin T. Callais
Justin Callais, PhD, is Chief Economist at the Archbridge Institute. He leads the institute's "Social Mobility in the 50 States" project and conducts original research on economic development, upward mobility, and economic freedom. Dr. Callais received his Ph.D. in economics from Texas Tech University and his B.B.A. in economics from Loyola University New Orleans. He serves as an economic consultant at Callais Capital Management, and he is co-editor of Profectus Magazine, an online publication dedicated to human progress and flourishing. In addition, he publishes a regular newsletter on Substack titled "Debunking Degrowth."
Edward Timmons
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
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