NPR tells the story of the impact of the 2008 financial crisis on black middle-class families: on average, they lost a much larger share of their wealth than whites. But NPR fails to relate this to land-use regulation that is promoted by whites who consider themselves “progressives.”
Similarly, a Trulia analysis of differences in housing prices among cities lamely credits the differences to “a lack of housing construction” in some regions, without suggesting why those regions aren’t building housing. Trulia also suggests that these trends are leading to “regional inequality” without mentioning inequality among individuals.
These issues are largely corrected in a new paper by Joel Kotkin, who makes it clear that “progressive policies” such as urban-growth boundaries are causing the high housing prices in some regions and, in turn, growing income inequality. Kotkin points to MIT economist Matthew Rognlie’s research showing that housing is the principle cause of growing inequality in both the United States and Europe.
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