I recently started reading Marginal Revolution. This recent post, called "Illegal Immigrants Didn't Break the Housing Market; Bad Policy Did," covers many of the things that we talk about on this blog:

If “fixing” housing scarcity means blaming whichever group is politically convenient, you end up cycling through targets: illegal immigrants first, then legal immigrants (as Canada has done), then the children of immigrants, then wealthy buyers, then racial or religious minorities. Indeed, one wonders if the blame is the goal.

If you actually want to solve the problem of housing scarcity, stop the scapegoating and start supporting the disliked people who are actually working to reduce scarcity: the developers. Loosen zoning and cut the rules that choke what can be built. Redirect political energy away from trying to demolish imagined enemies and instead build, baby, build.

As a developer, I naturally chose the most self-serving excerpt to quote, but that doesn't mean that what Alex Tabarrok wrote is incorrect. Blame is, of course, the goal. Such is the reality of politics. Here's another excerpt, this one from one of Howard Mark's investing memos:

I've always gotten a kick out of oxymorons — phrases that are internally contradictory — such as "jumbo shrimp" and "common sense." I'll add "political reality" to the list. The world of politics has its own, altered reality, in which economic reality often seems not to impinge. No choices need to be made: candidates can promise it all. And there are no consequences. If something might have negative consequences in the real world, politicians seem to feel free to ignore them.

This is why immigrants are blamed, foreign buyers are banned, rent freezes are proposed (counterproductive), and we continue to do very little to

In 2019, London implemented something known as an Ultra-Low Emission Zone (or ULEZ). The intent was to reduce the number of older and higher-polluting vehicles entering and driving around the city.

It works like this: If you have a vehicle that does not meet the ULEZ emission standards, you need to pay a daily charge of £12.50. This applies all day every day (except Christmas) and it is in addition to London's congestion charge.

It's also done entirely through license plate cameras. If you enter the zone, don't have an approved plate, and don't pay the charge within a few days, you get sent a fine. The result is that London's ULEZ is now the largest clean air zone in the world (at least according to London).

It also achieved its intended purpose. In 2017, only 39% of cars entering London would have met the ULEZ emission standards. Today the number is over 95%. Meaning, most people don't actually pay the charge.

At the same time, nitrogen dioxide levels in the zone have more than halved, improving overall health outcomes. It's a perfect example of taxing the things you want less of. What's also interesting is that there were positive second-order consequences.

I recently started reading Marginal Revolution. This recent post, called "Illegal Immigrants Didn't Break the Housing Market; Bad Policy Did," covers many of the things that we talk about on this blog:

If “fixing” housing scarcity means blaming whichever group is politically convenient, you end up cycling through targets: illegal immigrants first, then legal immigrants (as Canada has done), then the children of immigrants, then wealthy buyers, then racial or religious minorities. Indeed, one wonders if the blame is the goal.

If you actually want to solve the problem of housing scarcity, stop the scapegoating and start supporting the disliked people who are actually working to reduce scarcity: the developers. Loosen zoning and cut the rules that choke what can be built. Redirect political energy away from trying to demolish imagined enemies and instead build, baby, build.

As a developer, I naturally chose the most self-serving excerpt to quote, but that doesn't mean that what Alex Tabarrok wrote is incorrect. Blame is, of course, the goal. Such is the reality of politics. Here's another excerpt, this one from one of Howard Mark's investing memos:

I've always gotten a kick out of oxymorons — phrases that are internally contradictory — such as "jumbo shrimp" and "common sense." I'll add "political reality" to the list. The world of politics has its own, altered reality, in which economic reality often seems not to impinge. No choices need to be made: candidates can promise it all. And there are no consequences. If something might have negative consequences in the real world, politicians seem to feel free to ignore them.

This is why immigrants are blamed, foreign buyers are banned, rent freezes are proposed (counterproductive), and we continue to do very little to

In 2019, London implemented something known as an Ultra-Low Emission Zone (or ULEZ). The intent was to reduce the number of older and higher-polluting vehicles entering and driving around the city.

It works like this: If you have a vehicle that does not meet the ULEZ emission standards, you need to pay a daily charge of £12.50. This applies all day every day (except Christmas) and it is in addition to London's congestion charge.

It's also done entirely through license plate cameras. If you enter the zone, don't have an approved plate, and don't pay the charge within a few days, you get sent a fine. The result is that London's ULEZ is now the largest clean air zone in the world (at least according to London).

It also achieved its intended purpose. In 2017, only 39% of cars entering London would have met the ULEZ emission standards. Today the number is over 95%. Meaning, most people don't actually pay the charge.

At the same time, nitrogen dioxide levels in the zone have more than halved, improving overall health outcomes. It's a perfect example of taxing the things you want less of. What's also interesting is that there were positive second-order consequences.