Three New Year’s resolutions for economic opportunity

Marked by inflation, political division and the stubbornly persistent after-effects of the COVID-19 pandemic, 2022 has been another year that Americans are understandably eager to see end. The new year provides an opportunity for a sharp break from the struggles of the last few, and a forward-looking agenda for boosting social mobility is precisely what’s needed.

But a divided Congress and a simmering presidential contest that has begun far too early leave little hope for Washington, D.C., to make progress on the important issues. Instead, states and localities must take the lead.

Just like you and I aren’t likely to make it through the first weeks of January by over-committing to a crash diet and hours at the gym, local governments need not search for radical or revolutionary changes to make meaningful progress on increasing upward social mobility. Rather, just a few simple New Year’s resolutions (each with broad support and proven examples of success) can make all the difference.

The first resolution should be to address the housing crisis, which leads to soaring home and rental costs while limiting the ability of people to move to economically vibrant areas in pursuit of new opportunities. Restrictive zoning laws and bureaucratic red tape often make the building of new housing either illegal or prohibitively expensive.

Fortunately, there are several achievable reforms that can help turn the tide. Eliminating minimum parking mandates that increase costs, legalizing Accessory Dwelling Units (ADUs) so that additional housing can be built in desirable areas and reducing the minimum lot size on which new housing can be built are all reforms that have been adopted in jurisdictions across the country, resulting in more available housing to meet the need.

Simply allowing new housing options to be considered by reforming restrictive, exclusionary zoning laws is a significant step toward allowing Americans the opportunity to further climb the income ladder.

Another way in which states can resolve to enhance opportunity is to reform occupational licensing restrictions that make it harder for Americans to move states and begin new careers, while also increasing the costs of key services — all for almost no benefit. Occupational licensing restrictions were intended to protect consumers by mandating minimum standards for service providers, such as doctors and lawyers, but have expanded to cover everything from barbers to interior designers. These mandates add costs on top of the inflation already felt in America by artificially reducing the number of professionals available. Licensing barriers are also connected to lower rates of upward mobility.

States should consider the many regulatory alternatives, such as insurance requirements or voluntary certification, that can still protect consumers while mitigating the negative effects of burdensome licensing restrictions. At the very least, other states should follow the example of Arizona in allowing the recognition of such licenses in other states to transfer with professionals moving in-state, rather than forcing them to go through the costly, time-consuming process of getting a license all over again. After all, it’s not as if Americans moving states are leaving their skills and experience behind.

Finally, states can take a proactive approach by ensuring that the next generation is equipped with the skills needed for success, even before they search for their first job. In an era of automation, with new artificial intelligence technology just around the corner, soft skills (social and emotional competencies, behaviors and attitudes that enable effective navigation of the environment, teamwork and goal achievement) are becoming increasingly valuable in the modern labor market. Among the best mechanisms to cultivate and hone soft skills is unsupervised free play, beginning at a young age. But in an age of helicopter and snowplow parents, those learning opportunities are becoming harder to come by.

And it’s not just a cultural change in parenting; increasingly, parents who allow their children levels of independence that would be universally recognized as reasonable as recently as two decades ago are now finding themselves in legal trouble. Thankfully, Oklahoma, Texas and Utah have passed “Reasonable Childhood Independence Laws,” which protect parents from charges of neglect for letting their kids do something as simple as playing outside or walking to school alone. Other states should emulate these laws and protect parents who give their children the space to develop the skills needed for success later in life.

State and local governments are closest to the people they represent. In 2023, they will be presented with an opportunity to set citizens up for success. Resolving to make a few broadly popular changes to boost social mobility can ensure that the new year becomes one of opportunity.

Ben Wilterdink is director of programs at the Archbridge Institute, a Washington, D.C.-based nonprofit organization focused on economic mobility.