NYC can lead on true economic security

The presidential election sent a powerful message to politicians across New York and the nation: while the economy may look strong on paper, for millions of Americans, it feels anything but.

This stubborn disconnect between traditional economic indicators and real-life experiences has reached a breaking point. Metrics like GDP growth, inflation rates, and unemployment figures might indicate that the economy is improving, but for working families at the checkout counter, choosing a health insurance plan or budgeting for child care, the math isn’t adding up.

To better understand this dilemma, the National True Cost of Living Coalition commissioned the Urban Institute to study and measure, county by county, the costs of essential living expenses and the resources Americans have to meet them. The resulting measure, the “True Cost of Economic Security,” truly helps us understand what every American needs to become economically secure. The tool considers the full set of costs that modern families face compared with the resources available to them.

In their just released report, “Measuring the True Cost of Economic Security,” detailing the measure and its findings, the Urban Institute found half (52%) of all Americans struggle to pay their bills and save for a rainy day. Their research also discovered that three out of five children live in family households that cannot afford to meet their monthly expenses and have money left over to accrue savings.

For too many Americans, this so-called roaring economy hasn’t translated into financial stability or peace of mind. That’s especially true in New York City, where the high cost of living makes even middle-income families feel like they’re treading water — left behind or left out from an economy supposedly firing on all cylinders.

Many of these families make too much to qualify for public assistance but far too little to achieve true financial security. Because they are not captured by official poverty measures, they are invisible to policymakers and underserved by the systems designed to help them.

Traditional economic measures fall short because they weren’t designed to capture the complexities of modern life. They can track job growth or inflation but fail to reflect the daily financial pressures people face — pressures like rising rents, ballooning insurance premiums, the cost of transportation and outstanding debt. These outdated metrics miss the lived reality of millions of New Yorkers who may not meet the definition of “poor” but are one unexpected accident, layoff or medical emergency away from financial crisis.

The promise of the TCES measure is profound. It doesn’t just diagnose the problem — it offers a blueprint for crafting policies that genuinely meet working families’ needs. By using this measure and its findings, city leaders can make more informed policy decisions that better support low- and middle-income individuals and families striving to thrive in New York City.

This is why the City of New York must act swiftly to learn from and adopt the first ever TCES measure, and in doing so satisfy the 2022 voter-approved Charter revision requiring that the city annually calculate the true cost of living New Yorkers need to be financially secure.

Earlier this year, the administration committed to finalizing the methodology for this measure by the spring. But as we approach the end of the year, New Yorkers are still waiting. Deputy Mayors Anne Williams-Isom and Ana Almanzar recently said in an op-ed that the city is “working on this groundbreaking measure” and learning from other models, which is encouraging because the urgency of this issue demands prompt action.

New York City has an opportunity and responsibility to lead. By implementing the True Cost of Living measure, we can set a national standard for addressing economic insecurity. Imagine a future where families aren’t just surviving but thriving, where policymakers act based on the full picture of economic realities and where every New Yorker feels seen and supported.

This isn’t just about data. It’s about dignity. It’s about validating the struggles of millions and ensuring they have a fair shot at stability and opportunity. The True Cost of Living measure is more than a tool — it’s a chance to bridge the gap between perception and reality and to remind every New Yorker that their struggles are not unsolvable. Let’s not waste it.

Jones Austin is the chief executive officer and executive director of the Federation of Protestant Welfare Agencies and co-chair of the True Cost of Living Coalition.