I have had the pleasure of teaching Economics at Wickenburg High School this week and am reminded of how often people either don’t understand basic economics or refuse to recognize economic reality. I recently heard a candidate for Durango Colorado City Council say in a political statement something to the effect that he was tired of too much growth and therefore development should be limited. In the next paragraph he was saying that the lack of “affordable housing” was a shame and someone should do something about it.
When discussing these two statements, my class got it right. Having been taught about simple supply and demand they recognized that if you limit growth in housing you will be limiting the supply of housing and therefore causing prices to increase. Thus limiting development causes less affordable housing. The high school students got it right. They now understand that when you make a policy you have to understand the consequences of that decision. Limiting development decreases affordable housing. I only wish more people understood what the students understand.
Glad to hear your educational experiences went well!
However, developments should be geared towards where the growth is needed: a town that needs affordable housing and still has unsold luxury homes should focus on building those affordable homes and not more homes centered on world-class golf courses. This can help revitalize shopping areas by attracting both employees and customers. Towns need a middle class.
Posted by: Ivan | March 22, 2007 at 11:45 AM
Ivan, I agree that middle class housing is needed, but that generally means small lots which is what is often opposed.
Posted by: Arthur Pulis, III | March 23, 2007 at 03:25 PM