Less Is More: The Case for Free Market Solutions

By Jayke Flaggert

Government programs often aim to make essential goods and services more affordable and accessible to everyone. But as President Reagan once said, “The nine most terrifying words in the English language are: I’m from the government, and I’m here to help.” Despite their good intentions, these efforts frequently drive prices higher and distort markets. We’ve seen this play out time and again, whether it’s with college tuition, housing, or healthcare. When the government steps in with subsidies, loans, or other financial assistance, it disrupts the natural supply-and-demand balance. Instead of lowering prices, these programs artificially inflate them, making things more expensive for everyone.

Take the cost of college tuition, for example. For decades, the federal government has offered students financial aid through grants, scholarships, and low-interest loans to make higher education more affordable. Yet as Reagan noted, “Government’s first duty is to protect the people, not run their lives.” But the result has been the opposite. Colleges know students can borrow more to pay for school, so they keep raising tuition. Without the constant flow of government-backed loans, schools would have to compete on price, and tuition costs would likely drop. This would give students more affordable options, and competition would keep the market in check.

We see a similar issue in the housing market. Programs like Federal Housing Administration (FHA) loans, housing subsidies, and mortgage guarantees were supposed to make homeownership easier. Instead, they’ve contributed to inflated home prices, especially in high-demand areas. By making it easier for people to borrow money, the government has increased demand without increasing the supply of homes. With builders unable to keep up, prices rise. Instead of making homes more affordable, these programs have made them more expensive, and they’ve fueled housing bubbles that can burst—just like what happened during the 2008 financial crash.

In a free market, home prices would adjust naturally to supply and demand. People would buy homes they can actually afford, without being pushed into risky, unsustainable debt. But the current system encourages buyers to stretch their finances, while sellers and developers benefit from ever-rising prices. As Reagan said, “We must act today in order to preserve tomorrow.” It’s time to rethink how we approach homeownership and allow market principles to guide us to a healthier, more sustainable outcome.

Healthcare is another area where government involvement has driven up costs. Programs like Medicare, Medicaid, and the Affordable Care Act (ACA) were supposed to make healthcare more affordable, but they’ve done the opposite. With government guarantees for payment, hospitals and providers don’t feel much pressure to keep costs down. They know the government will pay, so prices keep rising. This is why Reagan warned us, “Government does not solve problems; it subsidizes them.”

The solution to these rising prices and market distortions isn’t more government involvement—it’s less. By reducing the government’s role and allowing competition to thrive, we can lower costs and make essential goods and services more affordable for everyone.

By embracing the power of a conservative approach to the free market, we can ensure that college, housing, and healthcare remain accessible and affordable for all Americans.