American Nightmare hasn’t sold as well as the Antiplanner’s other books, which is too bad because in some ways it is the most profound of them all. It covers a wide range of issues, including a detailed explanation of the 2008 financial crisis. But the overarching theme is that urban planning and zoning are best viewed as a form of economic warfare by the upper and middle classes against the working and lower classes. While that might not have been the original intent, to judge by the smug attitudes of the beneficiaries of such planning and zoning, they are perfectly happy with the results.
The book, therefore, was really about inequality, an issue recently made popular (and controversial) by Thomas Piketty’s book Capital in the Twenty-First Century. Piketty’s thesis is that income inequality is necessarily rising because the returns to capital wealth are greater than overall economic growth, thus giving people one more reason to hate capitalists.
Last month, a paper by an MIT graduate student in economics named Matthew Rognlie, examined Piketty’s thesis in detail. Rognlie found that the return on most kinds of wealth and capital has not been greater than overall economic growth, and therefore hasn’t been contributing to income inequality. The one exception, Rognlie found, was housing.
