1971 shift cited as turning point in U.S. housing affordability, new op-ed argues
Authors contend Nixon's move to end gold backing unleashed inflation and credit expansion that reshaped the housing market and widened the gap between wages and costs.
A new Fox News opinion essay argues that a single policy decision in August 1971 fundamentally altered the financial trajectory of American households, contributing to today’s housing affordability crisis even for dual‑income families.
The piece attributes the shift to President Richard Nixon's move to sever the dollar's link to gold, describing it as a deliberate pivot that severed fiscal discipline and left savers exposed to rising prices.
According to the essay, the post-1971 era allowed banks to flood the market with easy credit, while real wages stagnated and the cost of living rose, driving housing prices higher and pushing families into the so-called two-income trap.
The essay argues that these dynamics reengineered the financial system to reward the wealthy and widen the chasm between wages and costs, reframing the American dream of ownership as an increasingly distant goal.
Specific figures are cited: in 1970 the median home price was about $23,000, roughly four times the average household income; by contemporary estimates the price-to-income ratio has risen to about eight to one.
Dave Erickson and Paul Stone, co-authors of 1971: How All of America’s Problems Can Be Traced to a Singular Date in History, describe 1971 as a watershed moment. The book, with a foreword by Judge Jeannine Pirro, is scheduled for release Sept. 18, 2025.
The Fox News essay frames its argument as a warning that policy choices enacted decades ago continue to shape today's housing markets and middle-class security.
The authors maintain that unless the rules are confronted, the dream of affordable homeownership could remain out of reach for future generations.
The publication underscores the idea that policy decisions from 1971 onward have conditioned today’s housing market and broader economic landscape, a claim the authors say calls for renewed debate about fiscal policy and lending standards.
