Paul Krugman got it right. But it should not have taken a Nobel Laureate to note that the emperor's nakedness with respect to the connection between the housing bubble and more restrictive land use regulation. read more »
China's ascension to the world's second-largest economy, surpassing Japan, has led to predictions that it will inevitably snatch the No. 1 spot from the United States. Nomura Securities envisions China surpassing the U.S.' total GDP in little more than a decade. And economist Robert Fogel predicts that by 2050 China's economy will account for 40% of the world's GDP, with the U.S.' share shrinking to a measly 14%.
Americans indeed should worry about the prospect of slipping status, but the idée fixe about China's inevitable hegemony--like Japan's two decades ago--could prove greatly exaggerated. Countries generally do not experience hyper-growth--the starting point for many predictions--for long. Eventually costs rise, internal pressures grow and natural limitations brake and can even throw the economy into reverse. read more »
Few finance issues have received such a wide range of opinions among financial experts than the "housing bubble" in China. This is an issue of international importance because what happens in what is now the world’s 2nd largest economy affects the rest of the world. read more »
How can we reduce health problems in society? Should we tackle poverty and social problems such as crime and drug abuse, or is the problem inequality in itself? If we reduce the income in a middle class neighborhood, will this in itself improve the health of poor people living in the same city?
The latter form of reasoning is perhaps not so popular in the US, but quite so amongst European social democrats. A new book highlights how the European left is as concerned with fighting wealth as it is with fighting poverty. read more »
Vancouver is consistently rated among the most desirable places to live in the Economist’s annual ranking of cities. In fact, this year it topped the list. Of course, it also topped another list. Vancouver was ranked as the city with the most unaffordable housing in the English speaking world by Demographia’s annual survey. According to the survey criteria, housing prices in an affordable market should have an “median multiple” of no higher than 3.0 (meaning that median housing price should cost no more than 3 times the median annual gross household income). Vancouver came in at a staggering 9.3. The second most expensive major Canadian city, Toronto, has an index of only 5.2. Even legendarily unaffordable London and New York were significantly lower, coming in at 7.1 and 7.0 respectively. While there are many factors that make Vancouver a naturally expensive market, there are a number of land use regulations that contribute to the high housing costs. read more »
The human world is fast becoming an urban world -- and according to many, the faster that happens and the bigger the cities get, the better off we all will be. The old suburban model, with families enjoying their own space in detached houses, is increasingly behind us; we're heading toward heavier reliance on public transit, greater density, and far less personal space. read more »
The US Bureau of the Census has just released detailed county to county and place (municipality) to place work trip flow tables. This new data is the most comprehensive since the 2000 census and covers 2006 to 2008.
The county to county data is particularly useful for analysis in the nation's largest metropolitan area (Note 1), New York. The New York metropolitan area has more than 19 million people and stretches across 6,700 square miles of land area, one half of it in the urban area, which is the urban footprint that includes all areas, including suburbs, in the continuous urbanization (3,350 square miles) and the other half rural (Note 2). read more »
As the country’s political distemper grows, many commentators, reflecting their own generational biases, mistakenly assume that voters are looking for less government as the solution to the nation’s ills. But survey research data from Washington think tank, NDN, shows that a majority of Americans (54%), and particularly the country’s youngest generation, Millennials, born 1982-2003, (58%), actually favor a more active government, rather than one that “stays out of society and the economy.” read more »
Last month promoters of the Metropolitan Transit Authority's Los Angeles rail projects, both past and future, held a party to celebrate their "success." Although this may well have been justified for transit-builders and urban land speculators, there may be far less call for celebration among L.A.'s beleaguered commuters.
Despite promises that the $8 billion invested in rail lines over the past two decades would lessen L.A.'s traffic congestion and reshape how Angelenos get to work, the sad reality is that there has been no increase in MTA transit ridership since before the rail expansion began in 1985. read more »
Once a country known as “lucky” for its affordable quality of life, Australia has achieved legendary status as a place where public policies have destroyed housing affordability for the middle class. Draconian land rationing policies (called "urban consolidation" in Australia and more generally "compact city" policy or "smart growth"), have made it virtually illegal to build houses outside tightly drawn urban growth boundaries that leave virtually no room for new construction beyond the urban fringe. read more »