dpThe two major party candidates running to be South Carolina’s next governor say they each have plans to ease the affordability crunch that’s squeezing Palmetto State voters — and their solutions tend to reflect the philosophical differences that divide the two major parties.
The play for Republican nominee Alan Wilson, the state’s four-term attorney general, mostly focuses on lowering the cost of government.
“My number one goal is going to be making our economy more affordable for South Carolina families,” Wilson told reporters in April. “And you’re going to do that by eliminating the income tax (and) reducing property taxes.”
He added, “Obviously, there’s a lot of fraud, waste and abuse that causes the cost of government to go up and we’re going to address that as well.”
Democratic nominee Jermaine Johnson, who’s represented Richland County in the state House since 2020, says his plan would cut taxes as well, taking 70% of state income taxpayers off the rolls and reducing the property tax.
But it would also focus on raising the minimum wage for lower-income workers.
“I want people in South Carolina to imagine going to your one well-paying job and coming home to your safe neighborhood after picking your children up from a well-performing public school,” Johnson said in a June 3 Democratic gubernatorial debate. “In order to address that, it starts with establishing a livable minimum wage.”
Campaigns sharpen their pitches
Reached this week, both campaigns outlined specific policy proposals they say would help S.C. consumers deal with rising costs, further underscoring the differences in their approaches.
“South Carolina families are feeling the affordability crisis every day, and the solution starts with putting more money back in people’s pockets,” Johnson said in a July 7 text exchange.
“Our campaign is focused on lowering the cost of living by advancing the South Carolina Resource Independence and Resilience Act to boost in-state production of essential resources and strengthen supply chains, supporting a livable minimum wage, holding insurance companies accountable to bring premiums down, and providing meaningful tax relief for small businesses that create jobs in our communities.
“We believe government should work to make life more affordable and expand economic opportunity for every South Carolinian.”
Meanwhile, Wilson campaign spokesman Woods Wooten told the City Paper in a July 6 email that “every policy in A.G. Alan Wilson’s campaign starts with one question: Will this make life more affordable for South Carolina families?
“That’s why he’s proposed eliminating the state income tax, reforming property taxes by fixing Act 388, cutting government waste through the Families First Audit Initiative, lowering insurance costs through common-sense tort reform and expanding affordable, reliable energy production.”
Wooten added, “A.G. Wilson believes families should be able to keep more of what they earn, afford to buy a home, raise a family, and build their future right here in South Carolina.”
The politics … and the prices
Winthrop political scientist Scott Huffmon, who polled South Carolinians on the issue of affordability in May, said he wasn’t surprised the issue was dominating the current debate.
“Like the rest of the country, we’re struggling here in South Carolina with increased costs just trying to make ends meet,” Huffmon said. “And both candidates are going to focus on that.”
What does that struggle look like? According to the Winthrop Poll, 67% of S.C. residents say they find groceries difficult to afford, while 59% say the same of health care and housing costs. And 61% say that eating out is unaffordable, while 72% say a week-long vacation is beyond their reach.
Price data from the national Urban Institute helps explain why voters are feeling so squeezed.
Since 2017, average monthly grocery prices and health insurance premiums have each risen by almost 40% in S.C. Rent and child care costs are up by more than 46%. And the price of a home has shot up by 68%.
But as University of South Carolina economist Joseph Von Nessen pointed out in a July 7 interview, rising costs for consumer goods are largely beyond the reach of any governor.
“It’s largely national forces that are driving affordability challenges as a whole,” Von Nessen said, noting that the current U.S. inflation rate is 4.2%, while wages are only rising at 3.4%. “People are losing purchasing power. Their dollar just isn’t going as far.”
One place to make a difference
That said, Von Nessen noted there is one area where state government can make a difference: housing. And in fact, each campaign has offered policies to address the issue, with Johnson supporting larger investments in subsidized affordable housing and Wilson calling for lawsuit reform aimed at bringing down the costs of owning a home. In addition, both support further property tax relief.
But any long-term housing affordability solution, Von Nessen said, would also have to involve significantly increasing the supply of new homes to offset S.C.’s rapid population growth, meaning the state would have to work with local governments on zoning, permitting and infrastructure reforms.
“Upward pressure on housing prices is a big part of the affordability challenge,” Von Nessen said, echoing the Urban Institute data. “And while every region of the state is different in terms of finding the appropriate policy, leaders can work to facilitate housing and increase supply, which we need here in South Carolina.”
Jack O’Toole is Statehouse bureau chief for Statehouse Report and the Charleston City Paper. Have a comment? Send to: [email protected]
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