The pro-growth movement should focus on ways in which government favoritism undermines competition and dynamism. These are issues of some heft — IP, financial regulation, housing — around which one could build a meaty and relevant economic agenda.
The most effective housing finance reform would be to completely eliminate the government’s role in housing finance, and to let private capital and the private sector operate the housing finance system.
This week on Banter, Ed Glaeser explained how entrepreneurship helps America’s cities to thrive as well as options to make housing in these prosperous cities more affordable.
Government has a role to play during this new economic revolution, just as it did during other times of change and tumult. Indeed, a broad and fundamental rethinking of the safety net may be warranted as the nature of the US workforce evolves.
“The creeping web of these regulations has smothered wage and gross domestic product growth in American cities by a stunning 50 percent over the past 50 years. Without these regulations, our research shows, the United States economy today would be 9 percent bigger.”
If Congress wants to serve additional households, it should expand the much more cost-effective housing voucher program rather than the tax credit program.
Richard Reeves and I discuss his recent book “Dream Hoarders: How the American Upper Middle Class Is Leaving Everyone Else in the Dust, Why That Is a Problem, and What to Do about It” in this short-read Q&A.
Over the past several years, we have grown accustomed to hearing a lot about the 1%. Yet Richard Reeves of the Brookings Institution asserts that it’s the “favored fifth” — the top 20% of the income distribution — that is the greater problem.
The best opportunity to reduce child poverty rapidly is to divert money from the construction of new tax credit projects to the housing voucher program.
One cause of the nation’s dynamism decline is that it’s so darn expensive for workers to move to dynamic, high productivity cities, which can lead to decreased aggregate US growth. How can this be solved?