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Accountability crime and punishment folly general freedom government transparency local leaders moral hazard nannyism porkbarrel politics privacy property rights responsibility tax policy too much government

Progress, DC-Style

Is the black, Democratic mayor of Washington, D.C., actually a “racist”? What about the city council, which is 46 percent African-American, 85 percent Democrat, and 100 percent liberal/progressive?

That’s what a lawsuit argues — the DC ‘powers that be’ are racist in their development and housing policies. Filed on behalf of several African-American DC residents, it alleges that Mayor Muriel Bowser and the council have been striving mightily, as the Washington Post reported, “to ‘lighten’ African American neighborhoods and break up long-established communities.”

“Every city planning agency,” states the complaint, “... conspired to make D.C. very welcoming for preferred residents and sought to displace residents inimical to the creative economy.”

Nothing that a billion dollars couldn’t make right, of course — for which the plaintiffs ask.

But is gentrification a crime?

As American University professor Derek Hyra told the Post, “Developers want to maximize their return. This is not a conspiracy. This is capitalism.”

But no, this certainly isn’t laissez faire “capitalism.” It could be described as dirigisme — or “state capitalism” or “crony capitalism” or just a bad old-fashioned mercantilism, revised to work at the city level, where governments partner up with particular groups to extract as much wealth for the insiders as they can. Professor Hyra acknowledges that Bowser and the council were “providing subsidies” to bring in richer citizens and push out poorer ones.

Most importantly, we discover yet again that the power politicians claim they need to help the poor, is used to help the rich.

Way to go, “progressives.”

This is Common Sense. I’m Paul Jacob.

 


Note: The mayor is a Democrat and the 13-member council is composed of eleven (11) Democrats and two (2) independents. There are no Republicans.

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Categories
free trade & free markets too much government

Texas vs. No-Growth Coasts

Governments must rely upon profitable businesses. Without them, government has next to nothing.

And yet “next to nothing” is what governments can do to best help businesses succeed.

Thank Texas Governor Rick Perry for these thoughts . . . and Matthew Yglesias, who commented on Perry’s recent “nuclear-strength” video promotion, inviting businesses to leave places like New York and locate themselves in Texas, which has fewer regulations and no income tax. The ad claims Texas is “big for business.” Yglesias quibbles:

If New York was a terrible place to live, work, and do business, then it would be cheap to live in New York. But New York is not cheap. It’s not Detroit. It’s not even average. It’s, in fact, hellishly expensive. If New York emulated Texas and eliminated its income tax, rich people would bid up the finite supply of New York City land at an even more furious rate—the city wouldn’t see Houston or Dallas growth rates.

I’m no economist, but I have quibbles with Yglesias’s critique. New York is expensive, yes. But the cause of the expense isn’t just that people bid up housing and services. It’s expensive in no small part as a result of all those regulations, especially courtesy of one regulation in particular: rent control. Get rid of rent control and the city income tax? Watch housing grow.

And growth, Yglesias rightly points out, is what’s really in Texas’s favor. Texan low-impact government policies favor growth, while “the residents and politicians” of blue-state/beach-front states, though “liberal,” have, in fact, “become exceptionally small-c conservative and change averse.” Because they do too much, allegedly to “help.” But mostly to gentrify.

This is Common Sense. I’m Paul Jacob.