Recently sworn-in Mayor of New York City, Zohran Mamdani, made news in November when he appointed tech-critic and former Federal Trade Commission (FTC) Chair Lina Khan to co-chair his transition team. But before chairing the FTC, Khan broke onto the intellectual scene as a tech-sceptic, arguing that Amazon’s low prices were actually a function of predatory pricing. If and when New York decides to turn the screws on many technology companies, it will undermine the very idea that propelled Mamdani’s rise to power: affordability.
Politicians may not like to admit it, but many of the companies they like to demonize—such as Amazon, Google, Meta, and Microsoft —are actually helping consumers by providing affordable goods and services at low prices. Consider that a third-party analytics and research firm, Profitero, found that Amazon has retail products with an average price 14 percent lower than its competitors, giving shoppers the best value for their money across 10,000 items in 16 different categories. Google has helped consumers compare prices with Google Shopping since 2012, providing price transparency across retailers and letting consumers pick the best deals.
Not only have these companies introduced ways to make it easier for consumers to compare across sellers, but they are also pushing competitors to adapt. Walmart, a competitor of Amazon, has reduced its prices in response to Amazon’s price cuts in many categories. Similarly, retail stores like Target have responded to Walmart’s price cuts, with a price reduction in over 1,500 of their most purchased items. All of this benefits the consumer.
Artificial intelligence is also playing an outsized role in delivering accessible and affordable services. For instance, mental healthcare has experienced nationwide labor shortages and low reimbursement rates, which have driven up prices. In response, AI mental health chatbots filled the gap by offering general advice and counseling at affordable prices. Despite the many attempts of state and federal regulators to impose all kinds of rules on chatbots that could raise prices, the impact has remained positive for consumers.
Another more controversial tool emerging in AI governance is algorithmic pricing, which is a way to custom-tailor prices for consumers. While critics argue about the fairness of this type of pricing, economists generally find that algorithmic pricing allows a larger pool of people to be part of the market. This happens because, as the willingness to pay for goods and services varies across consumers, a linear price leaves out all of those with the lowest valuation. With algorithmic pricing, consumers are charged different prices, and typically, those who were previously priced out are now part of the market. In other words, algorithmic pricing is often not only pro-consumer, but also pro-low-income consumer. This is beneficial and also welfare-enhancing. Historical evidence shows that flights, ride-hailing, and the supply of electricity, which have all relied on algorithmic pricing, have enabled more people to access these services.
Affordability is quickly becoming one of the defining political issues of the moment—and for good reason. Consumer sentiment on the economy has consistently dropped since July 2025. And it’s not only New York weighing in. Newly elected governors in Virginia and New Jersey have also placed great emphasis on affordability by focusing on healthcare, energy, housing, and food prices. Even Trump has leaned heavily on this affordability message—going as far as to propose interest rate caps on credit cards. That decision would have many unintended consequences, but it shows the power of affordability messaging.
Rather than pushing for more regulations, caps on prices, restrictions on pro-competitive mergers, and tighter controls for new technology—all of which raise consumer prices—politicians should instead embrace the many ways that technology is making life better and more affordable.
Pablo Garcia Quint is a technology policy analyst with the American Consumer Institute, a nonprofit education and research organization. Follow Pablo on X @gq_pablo.