Thursday, January 07, 2010

Those robust, weakling real estate markets

Paul Krugman underscores the stupidity of opposing smart growth in Metro areas in the name of "free" market dogma:
someone will surely raise the claim that this shows that you mustn’t have “smart growth” policies because they cause housing bubbles. Can I say that this is deeply stupid? On one side, we’re supposed to believe that markets are efficient and wonderful; on the other, we’re supposed to believe that anything which constrains buildable land — which, you know, sometimes happens for entirely natural reasons — will send markets into wild irrational swings. Those poor, fragile, omnipotent markets, able to handle anything except mild government intervention…

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