Thursday, August 28, 2014

Paul Krugman Embraces the Republican Platform

I try to avoid Krugman since he is mendacious and noxious. But I did happen to read this editorial titled, "Wrong Way Nation." Why has "Texas has had faster job growth than the rest of the country." Why "have other Sunbelt states with conservative governments" also had faster job growth he asks.

He finds the answer in housing costs. Wages are 12% lower in Houston versus NY, for instance, but housing in NY is 60% higher in NY than Houston. And why is that? Partly population density and geography (huh?) he claims. But the real difference:

However, as Harvard’s Edward Glaeser and others have emphasized, high housing prices in slow-growing states also owe a lot to policies that sharply limit construction. Limits on building height in the cities, zoning that blocks denser development in the suburbs and other policies constrict housing on both coasts; meanwhile, looser regulation in the South has kept the supply of housing elastic and the cost of living low.

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