The United States is among the most developed economies in the world. This has led to a standard of living that is simply unmatched throughout the world or throughout history. Even in such a developed and comparatively wealthy nation, policymakers still must allocate resources appropriately to encourage further economic development in their own communities and bring the benefits of a developed economy to their constituents. Encouraging economic development and adopting policies that promote that development rather than hinder it can mean an enormous improvement in the economic opportunity and quality of life for all people.

While there are myriad factors that contribute to economic development, making sure that businesses and individuals have access to capital is key. Capital and access to it is the catalyst for investment that drives job creation and economic security. Policymakers should also strive to ensure that businesses are not over-regulated. Overregulation costs the economy billions of dollars each year and hampers economic development by discouraging investment and entrepreneurship. Regulations should not proliferate to a point beyond reasonable public and consumer protections.

Creating a market-oriented housing policy that allows housing supply to fit demand and encourages the creation affordable housing through market forces can boost a state’s human capital and help to develop an area’s economy. As job opportunities grow, human capital must be there to sustain and benefit from the increased economic activity. Crafting polices that allow the most vulnerable among us to better themselves and their families by enacting common-sense housing reforms can be crucial in limiting people out of poverty.