As the year winds down, all of us at the John Locke Foundation want to pause and say: Merry Christmas!
Good evening,
As the year winds down, all of us at the John Locke Foundation want to pause and say: Merry Christmas!
This season has a way of cutting through the noise.
For a few short days, committee hearings, court decisions, and budget debates give way to church services, long drives to see grandparents, and children far more interested in wrapping paper than public policy.
It’s a healthy realignment of priorities.
Christmas reminds us that the most important things in life are not created by the government and cannot be regulated by statute.
Faith, family, neighborliness, and the quiet courage of ordinary people doing the right thing — these are the foundations of a flourishing society.
As you gather around dinner tables, Christmas trees, and maybe the occasional ACC bowl game, we hope this season brings you rest, good conversation, and a renewed sense of hope for North Carolina’s future.
From all of us at Locke, thank you for standing with us.
Merry Christmas, and may God bless you and your family.
Esse quam videri,
Donald Bryson
CEO
John Locke Foundation
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The North Carolina Utilities Commission (NCUC) recently approved multi-year rate hikes for Duke Energy Progress (11.3%) and Duke Energy Carolinas (14.6%).
The NCUC’s Public Staff has warned that rates could potentially double after the next round of hikes beginning in 2026.
These increases follow a trend where rate hikes have consistently outpaced inflation, significantly increasing the financial burden on NC households.
State-mandated shifts to close functional coal plants and replace them are the primary cost drivers.
Under current law, Duke Energy is guaranteed a profit on capital investments.
This creates a "perverse incentive" to build expensive new infrastructure.
Forcing the closure of "working" power plants before the end of their useful life requires customers to pay for the remaining debt on those plants while simultaneously funding their replacements.
Additionally, state-funded "economic development" projects (e.g., Wolfspeed, VinFast, and Toyota) require massive amounts of electricity.
Because Duke must expand the grid to accommodate these power-intensive manufacturing projects, average residential ratepayers end up subsidizing the infrastructure needed for these projects.
NCUC has also failed to provide effective pushback against Duke’s proposals, leading to a system that favors shareholder returns over consumer costs.
State law requires "least-cost" and reliable service, but current political goals are overriding this principle in favor of more expensive green energy goals.
The General Assembly should reform the incentive structure so that Duke is rewarded for providing the most affordable and reliable power (like nuclear and natural gas), rather than just building new capital projects.
While ultra-long mortgages are presented as a solution to housing affordability, they are ultimately a "gimmick" that creates significant financial risks for borrowers and the broader market.
While a 50-year term slightly lowers monthly payments, it barely improves true affordability.
A borrower earning $100k might only increase their home-buying budget from $360k to $400k.
Stretching a loan to 50 years also dramatically increases the total interest paid.
On a $300,000 loan, a borrower could end up paying over $750,000 in interest, more than double the interest of a 30-year loan.
Borrowers would build equity at an extremely slow pace, making it difficult to refinance or sell without being "underwater."
Increasing "purchasing power" through longer terms boosts demand without increasing housing supply.
This risks driving home prices even higher, effectively canceling out the benefit of lower monthly payments.
Investors may also be reluctant to hold 50-year loans because they are high-risk, increasing interest rates – further eroding savings for consumers.
50-year mortgages are a "costly trap" that papers over structural issues like low housing inventory.
Rather than helping Americans build wealth, they trap families in debt for decades with minimal ownership to show for it.
Gov. Josh Stein recently celebrated a “record-setting year for job creation” in North Carolina, citing tens of thousands of job announcements statewide.
But announcements aren’t jobs, and the long-term results of the state’s Job Development Investment Grant (JDIG) program make that distinction clear.
While annual job announcements increased by 147% over the long run, actual job creation grew by only 31%, barely budging since 2014.
More than four out of five concluded JDIG agreements have ended in termination or withdrawal…
And as the program has scaled up, the number of failed agreements has steadily risen.
The state's potential financial liability to participating companies has also surged from $624 million in FY 2015 to more than $3.1 billion in FY 2025, significantly increasing long-term taxpayer exposure.
Announcements generate headlines, but they do not drive prosperity.
If North Carolina wants lasting economic growth, it should continue strengthening the structural reforms that have already proven effective — not doubling down on corporate handouts that rarely deliver.
