The Rent Is Too High, Partisanship Versus Democracy
Will Wilkinson of the libertarian Niskanen Center tells The Washington Post that expanding affordable housing in America’s major cities is the key to reducing inequality.
Wages have barely budged in decades, yet housing costs have soared due to restrictive zoning and land-use policies. Young and working Americans are now unable to save. Homeowners are getting richer.
Kevin D. Williamson, a conservative columnist who was recently hired and then fired by The Atlantic for his right-wing views (more on that here), has similarly argued in National Review that working-class Americans left behind in the Rust Belt need to move to the coasts. He partly blames them for staying put, but recognizes that policy plays a role.
Consider California, where so many of the jobs in the new economy are. Its housing crisis (you can buy a private island or a castle in Europe for the price of a San Francisco apartment) is entirely man-made, “a result of extraordinarily restrictive zoning and environmental codes and epic NIMBYism of a uniquely Californian variety.”
A Republican Party wishing to renew its prospects in California (which it once dominated) or in American cities could — and should — make affordable housing the centerpiece of its agenda for the cities.
More on why Republicans ought to compete in American cities here. Handelsblatt reports that Berlin fears San Francisco-style housing problems. Read more
New Social Compact: Deregulation and Universal Basic Income
I believe that to shrink the culture gap in Western democracies — between generally well-educated “globalists” and those who feel left behind — we need a new social compact.
The twentieth century’s was built on strong trade unions, lifetime employment and health and pension benefits tied to salaried jobs. The economy, and people’s expectations, have changed in such a way that this is no longer sustainable. But we haven’t come up with a replacement yet.
The American Enterprise Institute’s Dalibor Rohac may be onto something. He calls for a “grand bargain”: serious deregulation coupled with the introduction of a universal basic income. Read more
Conservatives Need to Make Capitalism Work for Everyone: Davidson
It is not inequality that bothers Brits, argues Ruth Davidson, the Scottish Conservative Party leader, in the new online magazine UnHerd. It’s injustice.
People expect that the CEO of a corporation will be the highest paid person on the payroll. What they don’t accept is that FTSE 100 bosses are paid 174 times the average worker’s wage in this decade — compared to 13 to 44 times in 1980.
Especially when many of their companies have received either big fraud-related fines or bailouts from the state.
The distinction matters, because it goes to a broader point. Read more
Middle-Income Suburbanites Decided the Election — Again
On election night, when it was starting to become clear Donald Trump would win, I wrote it had been a mistake to think Hillary Clinton could make up for losing white working-class voters in the “Rust Belt” by drawing more minority and young voters to the polls, particularly in the “Sun Belt” states.
Clinton didn’t win Florida. She didn’t win North Carolina. She didn’t make Arizona and Texas more competitive for Democrats. And she was so unpopular with white voters, especially those without a college degree, that one-time Democratic strongholds in the Northeast — Michigan and Pennsylvania — changed sides.
Looking more closely at what happened on Tuesday, though, I’m not sure this is what doomed her. Read more
Reading Bloomberg Businessweek‘s interview with Barack Obama, I get the sense the president understands the big economic and social challenges of our time but still underestimates the impact of regulation on businesses. Read more