Two Liberals Take a Walk on the Supply Side
Card carrying liberals New York Times columnist Ezra Klein and Atlantic writer Derek Thompson have created quite a stir with their walk on the supply side. They have concluded that the “blue model” of California, New York and Illinois is not working. Simply put, those states are bogged down with procedural liberalism that makes process more important than the end result. Making matters worse the blue states are guilty of “everything bagel” liberalism where before a project is approved every erogenous zone associated with the Left has to be satisfied. (e.g., union labor, day care, affirmative action quotas for contractors and workers, neighborhood input, affordable housing, environmental protection).
As a result, nothing gets built, or it takes forever. No wonder house prices are out of control in California. And perhaps more stunning is an "affordable" housing project in Santa Monica was recently approved at an estimated cost of one million dollars a unit.
Procedural liberalism arose in the 1970’s to deal with the excesses of the prior decades where projects were built without regard to the environment and the neighborhoods affected. In response a host of national and state laws were passed to control development. Unfortunately, what seemed reasonable in the 1970’s, turned into monstrosity in the 2000’s.
The change in the development regime can be seen through the window of Pat Brown’s administration in California from 1958-1966 and his son Jerry’s first administration from 1974-1982. Under the first Brown, freeways, water projects and universities were built. Under Jerry Brown’s administration we were in “the era of limits.” Liberalism stopped dreaming big and when it did with its plans for high-speed rail, it got completely bogged down in a procedural morass.
Klein and Thompson’s solution calls for a radical deregulation of the housing permitting process. They look admiringly at the Texas cities of Houston and Austin. The solution to a housing shortage is to build. However, California’s sacred environmental quality act (CEQA) would have to be drastically amended for this to work. That act has been weaponized by homeowners and environmental groups to stop or drastically curtail developments and by construction labor unions to extort project labor agreements into major development projects. Furthermore, in deep blue Santa Fe, a major neighborhood group is using every available legal channel to block a major solar/battery storage facility. What was designed to halt fossil fuel projects is now being used to halt clean energy projects.
The authors cite what can happen when the regulatory burden is lifted. For example, Governor Josh Shapiro rebuilt a break in the I-95 corridor in less than two weeks. Had the normal procedures been followed it would have taken two years just to go through all of the approvals needed. Similarly, Operation Warp Speed delivered COVID vaccines in less than a year, saving the lives of millions. Unfortunately, the liberals did not want to praise the effort in fear saying something nice about Trump, and Trump himself walked away from it because he worried too much about his anti-vax base.
Government can work and Klein and Thompson rightly believe that we can return to a more efficient model of government. My own thought is that Roosevelt’s New Deal would never have gotten off the ground if it had to operate within today’s regulatory framework. I would note that where after two years Biden’s electric vehicle charging stations and rural broadband; both of which are bogged down in bureaucratic red tape.
The buzz around “Abundance” is justified. Whether the silos within the Democratic Party yield to the book’s logic remains to be seen, but one can only hope. If I would have major criticism, it would be that nowhere, do they discuss the abject failure of America’s public schools. I guess the teachers’ unions are too sacred a cow for them. I would note that the path to their abundant society has to be built by an educated workforce.