Wednesday, September 5, 2012

Conservatives for Regulation

American conservatives like to complain that economic growth is being throttled by government regulation, and to argue that if we just lightened the regulatory burden the economy would prosper. I would say, that depends on the regulation. But one kind of regulation that we know hurts economic growth is limits on population density in urban areas, and one kind of regulatory reform that we know leads to growth is removing those limits and allowing developers to build more densely. Thus it is very amusing to see City Journal, an organ of the conservative Manhattan Institute, opposing Los Angeles' plan to allow denser development in Hollywood. Joel Kotkin's paean to L.A.'s dispersed city touches all the bases of opposition to development, from traffic to comparisons with East Germany to a plea that new development be "congruent with the area’s architectural traditions." And then a California touch, the sky:
This dispersion creates an aesthetic rarely appreciated by density boosters, enabling residents to enjoy fully L.A.’s unique ambience—its superb Mediterranean climate, lush foliage, tall trees, and, most of all, magnificent light. Even when you walk down Hollywood Boulevard, what’s most striking is not the skyline but the steep hills, framed by palms, rising toward a clear blue sky. For a glimpse of the Hollywood imagined by Villaraigosa and his confederates, take a look at the much-reviled Hollywood and Highland Center, home of the Dolby Theatre, which hosts the Academy Awards. Instead of brilliant light and blue sky, visitors confront a boxy hulk that obscures the hillside views.
Obviously this is a political decision that should and will be made by the people of Los Angeles, and not really any of my business. But the lack of affordable housing is a big problem for L.A., and here we have a conservative solution to that problem: regulatory reform leading to greater private investment. Nobody who opposes this plan has any right to protest when other people defend the regulations they like, or to argue that government could help most by just getting out of the way.

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