Providing Trusted Policy Solutions To State Legislators: Jonathan Williams on The Making Waves Podcast

ALEC President and Chief Economist Jonathan Williams spoke with host Dave Roetman on The Making Waves podcast about the legacy of ALEC in empowering legislators with trusted policy solutions on critical issues, including economic freedom, housing reform, and healthcare price transparency.

The Mission of ALEC

The conversation began with a look back at the history of ALEC. Williams delved into that history with Roetman and highlighted the ALEC mission of supporting limited government, free markets, and federalism across the states.

“The idea was that ALEC would be founded to come together with best practices and educational resources for America’s state legislators as an organization that would be devoted to really the guiding American principles of limited government, free markets, and federalism, that not all good ideas ought to come from Washington, DC. They ought to come from the States,” Williams noted.

“So much of the positive change that’s happening in our country is happening at the state and the local level, and of course, that’s ALEC’s bread and butter. Still to this day, 50 years later, providing that nonpartisan but conservative, free market resources for America’s state legislators.”

Why Federalism Matters

Roetman and Williams then went into the concept of federalism and the importance of understanding it, especially as America celebrates its 250th birthday, as defined by the 10th Amendment, which reserves powers to the states and the people. Williams emphasized the role of states serving as laboratories of democracy for good policymaking.

“I think it’s incumbent on all of us to go back and reread those founding documents, the Declaration of Independence, the Constitution, and the Bill of Rights of the Constitution,” Williams noted.

“The Bill of Rights gets directly to this point in the 10th Amendment, which was those things not given to the federal government, should be reserved for the states and the people of this states, and that, of course, is the founders idea of federalism, and the great Ronald Reagan reminds us often that the federal government did not create the states. The states created the Federal Government.”

Economic Freedom and State Migration

The discussion turned to economic trends and the challenges states are facing with residential migration. Williams emphasized the need for states to offer economic freedom to attract and retain residents.

“It is very difficult over a long period of time for states that have a lack of economic opportunity to keep people in their state,” he said, using California as an example, which has been hemorrhaging residents and has seen an increase in out-migration.

In contrast, states that have embraced economic freedom policies, like South Dakota, have seen the rewards as an in-migration state.

“South Dakota has been an in-migration state, which is a very, you know, positive piece. And you know, having, not having a personal income tax and corporate income tax is a big reason why.”

Property Taxes and Housing Affordability

Housing costs and property taxes have continued to be a growing concern nationwide in recent years. Williams emphasized the need for state lawmakers to address the cost drivers of housing, particularly taxes and insurance.

“Almost to a person, the number one issue we hear is the lack of affordability when it comes to housing and property taxes,” Williams said.

He argued that local governments often obscure the true drivers of rising tax bills. “They didn’t reduce the rate, and they pocketed the difference,” he said, describing how assessments can increase taxes even when rates remain unchanged.

Affordable and Reliable Energy

Sensible energy policy is still needed as the public demands affordable and reliable energy prices to meet public needs. Williams stressed the importance of state policies in removing barriers to energy production and encouraging supply growth.

“We must control costs. We have to increase supply,” he said, emphasizing that affordable, reliable energy is now “a national security challenge.”

“I think we have our hands full as a nation, to really come and meet this challenge head on and make sure that we’re doing our best to really put our best foot forward on producing that reliable, affordable energy that we need.”

Healthcare Transparency and Costs

The conversation also touched on the importance of price transparency in healthcare and allowing patients to make informed decisions. Williams noted the need for more patient-centric, free-market solutions and how ALEC was able to find success on this issue in states such as Colorado and Virginia.

“How do we make sure that we re-evaluate health care broadly to make it more patient-centric? I think that’s the key,” Williams raised, working toward a “free market health care that really empowers people with price signals and allows them to economize and choose the best health care options for themselves, I think essentially, whether it’s federally or at the state level, that’s a big issue.”

Looking to the Future

As the nation approaches its 250th anniversary, Williams said ALEC remains focused on educating lawmakers and citizens alike.

“Decisions should not all be made here in Washington, DC,” he said. “They need to continue to be made by the innovators, the laboratories of democracy in the 50 states.”