The banking crisis of 2008 and its attendant deep recession have been hailed by statists the world over as the ultimate demonstration of capitalist greed and a justification for more and more regulation and government control of the economy, particularly the financial sector. Their argument boils down to an accusation that private actors in the marketplace are incapable of dealing with systemic crises and that government is the only agent that can address the market as a whole in order to combat panics and economic shocks. That argument won out in the aftermath of the recession, leading to a raft of new regulations, most notably the voluminous Dodd-Frank Act.
Today, more than any time, arguably, since the Great Depression, the prospects for improved housing outcomes are dimming for both the American middle and working classes. Not only is ownership dropping to twenty-year lows, there is a growing gap between the amount of new housing being built and the growth of demand.
Philadelphia was America’s first large city and served as the nation’s capital for all but nine months between the inauguration of George Washington is the first president in 1789 and the capital transferred to Washington, DC in 1800. Before the early 1900s, the United States Census Bureau had not developed a metropolitan area (labor market area) concept. However, the website peakbagger.com has attempted to define earlier metropolitan areas based on concepts similar to those used today. In the case of Philadelphia, this is important, because it was somewhat unique in having virtually adjacent, highly populated suburbs that make comparisons of municipal populations (the only population data available) misleading.
The recently released 10th edition of Demographia World Urban Areas provides estimated population, land area and population density for the 922 identified urban areas with more than 500,000 population. With a total population of 1.92 billion residents, these cities comprise approximately 51 percent of the world urban population. The world’s largest cities are increasingly concentrated in Asia, where 56 percent are located.
Time Magazine’s Sam Frizell imagines that the American Dream has changed, in an article entitled “The New American Dream is Living in a City, Not Owning a House in the Suburbs.” Frizell further imagines that “Americans are abandoning their white-picket fences, two-car garages, and neighborhood cookouts in favor of a penthouse view downtown and shorter walk to work.” The available population data shows no such trend.
There was a time when downtown Los Angeles was the commercial center of Southern California. According to Robert Fogelson, writing in his classic Downtown: Its Rise and Fall (1880-1950)”nearly half” of Los Angeles residents went downtown every day in the middle 1920s. A time traveler from 1925 might think that to still be the case, with the concentration of tall buildings, and the frequent press reports about downtown’s resurgence.
The 2013 annual metropolitan area population estimates by the US Census Bureau indicate a continuing and persistent dominance of population growth and domestic migration by the South. Between 2010 and 2013, 51 percent of the population increase in the 52 major metropolitan areas (over 1 million population) was in the South. The West accounted for 30 percent of the increase, followed by the Northeast at 11 percent and eight percent in the North Central (Midwest).
Despite planning efforts to restrict it, the Bay Area continues to disperse. For decades, nearly all population and employment growth in the San Jose-San Francisco Combined Statistical Area has been[…]
The full bill for Obama’s failed economic policies has yet to arrive. But no such explosion of debt has ever escaped a day of reckoning, and no such monetary surge has ever had a happy ending.
Did Janet Yellen,
(1) see any problem in the housing bubble,
(2) anticipate the bursting of the housing bubble; and,
(3) anticipate its implications for the U.S. economy?
The answers are (1) no, (2) no, and (3) no.
Despite the success of recent reforms, legislators are now considering undermining positive flood insurance reforms by extending wasteful flood insurance subsidies in response to complaints from homeowners in high risk[…]