Category Archives: Politics

Housing policy that encourages both affordable housing and rising home values

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This article points out a contradiction in housing policy: can we promote affordable housing while at the same time suggesting housing should be a good investment?

So how are these two conflicting ideas to be reconciled? Well, that’s the basic challenge of housing policy. Perhaps a start would be to acknowledge that there is, in fact, a tension here—that “protecting” or “promoting” property values is the same thing as “making housing more expensive.” It’s somewhat discouraging, for example, when community organizations claim that “affordability doesn’t mean housing values have to remain stagnant,” without acknowledging that if housing values aren’t stagnant—i.e., they’re growing—that means they’re also becoming less affordable.

But there is some hope. One thing that could help is robust production of housing that isn’t priced by the market, and therefore isn’t affected by rising market prices. That can be accomplished through public housing, privately-developed affordable housing with programs such as the low-income housing tax credit and housing vouchers. At the moment, few places produce non-market housing at anything close to a scale that would provide broad affordability, but there are encouraging examples: Portland, for instance, has created 2,300 units of affordable housing in its redeveloping Pearl District, adjacent to downtown, financed largely by taxes.

In many places, having a wide variety of housing types and sizes can also make room for people with a wide variety of incomes. My street in the Edgewater neighborhood of Chicago, for example, contains a handful of single-family homes, whose value at this point probably reaches into the six figures; expensive newer condo buildings; older multifamily buildings, some of which have large, luxuriously updated units, and others whose apartments are somewhat smaller, or have less up-to-date finishes; and a few single room occupancy buildings, with minimal accommodations. As a result, there is market-rate housing for everyone from upper-middle-class professionals to working-class immigrant families to low-income elderly adults. Of course, that sort of diversity is typical of a pre-zoning “illegal neighborhood”: A vanishingly small proportion of American neighborhoods allow that sort of mix to be created today, which is a large part of the problem. Making these kinds of neighborhoods more common might make America’s housing policy a little more cohesive and less contradictory.

In the explanation of why we have two contradictory positions, I think two key pieces are missed. One is the political dimension of these two goals for housing. Both have broad appeal – people want to be able to move to better neighborhoods even as they want higher housing values – and politicians continually push homeownership for the average American.  This has been a common theme going back to the 1920s (see an example from 1931). To put it bluntly, it helps secure votes. Second is the role of residents themselves who continue to want both outcomes. Policy, particularly at the federal level, is important here and a number of scholars have noted how decisions about mortgages and urban renewal privileged homeownership in the suburbs. Still, numerous residents practice NIMBY behavior, resisting change once they have their secure position within the home and neighborhood they want. Given the amount of money required to buy a home – it is the biggest single investment many people will make – this is understandable but it certainly doesn’t help others.

Both of the proposed solutions above are difficult to pull off. Using public money for public housing or affordable housing has been opposed since the early 1900s. Having mixed use and mixed income neighborhoods may be popular with some (New Urbanists, young people moving to the city) but it doesn’t get the same level of support from the broader public. To have housing for all or many would mean giving up some on the idea of housing as investment but those with more means – from the middle class on up – will not like this idea one bit.

Growing troubles in surveying Americans

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International difficulties in polling are also present in the United States with fewer responses to telephone queries:

With sample sizes often small, fluctuations in polling numbers can be caused by less than a handful of people. A new NBC News/Wall Street Journal national survey of the Republican race out this week, for instance, represents the preferences of only 230 likely GOP voters. Analysis of certain subgroups, like evangelicals, could be shaped by the response of a single voter.Shifting demographics are also playing a role. In the U.S., non-whites, who have historically voted at a lower rate than whites, are likely to comprise a majority of the population by mid-century. As their share of the electorate grows, so might their tendency to vote. No one knows by how much, making turnout estimates hard…

To save money, more polling is done using robocalls, Internet-based surveys, and other non-standard methods. Such alternatives may prove useful but they come with real risks. Robocalls, for example, are forbidden by law from dialing mobile phones. Online polling may oversample young people or Democratic Party voters. While such methods don’t necessarily produce inaccurate results, Franklin and others note, their newness makes it harder to predict reliability…

As response rates have declined, the need to rely on risky mathematical maneuvers has increased. To compensate for under-represented groups, like younger voters, some pollsters adjust their results to better reflect the population — or their assessment of who will vote. Different firms have different models that factor in things like voter age, education, income, and historical election data to make up for the all the voters they couldn’t query.

The telephone provided new means of communication in society but also helped make national mass surveys possible once a majority of Americans had them. Yet, even with cell phone adoption increasing to over 90% in 2013 and cell phones spreading as fast as any technology (comparable to the television in the early 1950s), the era of the telephone as an instrument for survey data may be coming to an end.

Three other thoughts:

  1. Another issue at this point of the election cycle: there are so many candidates involved that it is difficult to get good data on all of them.
  2. If the costs of telephone surveys keep going up, might we see more door-to-door surveys? Given the increase in contractor/part-time work, couldn’t polling organizations get good idea from all over the country?
  3. If polls aren’t quite as accurate as they might have bee in the past, does this mean election outcomes will be more exciting for the public? If so, would voter turnout increase?

When conservatives move to squash local control

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Republicans are typically known as the party in favor of more powerful local governments. Yet, this may not be the case in places where local governments limits their quest to power:

The strange spectacle of Republicans trying to roll back local control makes a bit more sense in context. For years, Democrats mostly controlled both the statehouse and the governorship. But Republicans captured the legislature in 2010, and the governor’s mansion two years later. Ever since, they’ve been busily passing a series of very conservative measures, some of which I explained here. The rightward shift inspired a prolonged series of protests in Raleigh and other major cities called “Moral Mondays.”

The large demonstrations, combined with their general impotence to stop the legislature—internecine GOP struggles, and not public opposition, have generally killed the most controversial measures—illuminate what’s going on. Rural-urban divides are a fixture of American politics, and they’re a particularly powerful force in North Carolina right now. Its urban centers tend to be far more liberal, while the rest of the state is far more conservative. The liberals can gather large, impassioned crowds to rally against conservative moves, but they don’t have the numbers (so far) to elect a majority in the state legislature—especially after post-2010 redistricting that made the map more favorable for Republicans. (Barack Obama narrowly won the state in 2008 but lost it in 2012.)

Despairing of Raleigh, progressives have often pursued their priorities at the local level. That’s exactly what the state bill was intended to stop. When Congress does this to state and municipal governments, it’s known as preemption—it’s a bedrock constitutional principle that federal laws trump state laws. With a Democrat in the White House, though, there are limits to what the Republican Congress can pass. But the GOP has been gaining seats at the state level for years, and now controls most state legislatures. Cities often tilt left, even in very red states, but conservative state governments around the country have begun passing laws that preempt municipal legislation. Last year, for example, Matt Valentine chronicled how state governments are overturning much stricter gun laws passed by cities with preemption laws…

In other words, it’s a classic case for big-government uniformity. Faced with these bills, Democrats in turn tend to make a strikingly conservative argument: Local people know best, and they ought to have the right to make their own rules about how they live, as long as it isn’t negatively affecting their neighbors.

Local control is very important to many Americans, particularly if you have some means to get to a community where you can have a voice or be assured that local government generally agrees with what you want.

Let’s be honest: both parties today are willing to forgo some (most?) principles if it means that they can use their particular tool of power to get what they want. Opposed to executive power when your party is out of the presidency? Just argue your interests are too important when your party is in office. Control Congress while another branch isn’t doing what you want? Try to bypass their power and/or limit their abilities. This leads to a rhetorical question: how well can these levels of government or different branches work together to get things done if the primary goal is just to exert power?

 

Historian argues American public housing had successes

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In a new book, a historian looks at the positive potential of American public housing:

“The story of American public housing is one of quiet successes drowned out by loud failures,” writes Ed Goetz, a professor at the University of Minnesota, in his book New Deal Ruins: Race, Economic Justice and Public Housing Policy…

But as Maddie Garrett’s experience shows, and as Goetz details in his book, public housing had—and still has—a lot of potential. It’s just that seemingly no one—not politicians, not Congress, not home builders—wants it to succeed…

In some small cities, though, public housing has worked and continues to work. That includes Austin, the site of one of the first public-housing complexes in the nation, which still stands today. The Housing Authority of the City of Austin has been recognized as a “High Performer” by HUD for 15 years in a row, and, rather than depending on the federal government for help, it has embarked on a few entrepreneurial programs to raise money…

By and large, smaller agencies across the country have been more successful at providing good public housing for residents than giant city agencies have, Goetz says. The example of Austin and other cities such as Cambridge, Massachusetts; Portland, Oregon; and St. Paul, Minnesota; indicate that public housing didn’t have to fail. And perhaps with some tweaking—dividing big public-housing authorities into smaller, regional ones, or spending more money on housing for the poor in good neighborhoods—it doesn’t have to fail in the future, either.

Much of the article summarizes some of the history of American public housing which has had vociferous opponents throughout its existence. Given this opposition – involving charges of socialism, becoming intertwined with race, criticism of poor architectural choices, to corrupt management – maybe we should be surprised that there were any successes at all.

But, the finding that smaller agencies did better might provide insights into how to limit this opposition. The scale of public housing in these cities was likely smaller. The political stakes were probably lower. These smaller cities may not have had the same legacies of residential segregation. The local governments may have been able to maintain stronger control over the public housing instead of it being lost within the big city bureaucracy. Smaller cities have smaller media contingents that can’t quite bring the same negative attention to troubled public housing choices in the same way that big city media can.

Whether lessons from this can be productively used in the future remains to be seen. Public housing still doesn’t seem to have much of a chance in major cities.

Census Bureau releases supplemental poverty figure

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There is the official poverty rate from the Census Bureau – and now also a supplemental measure.

That’s why for the first time, the bureau released a supplemental poverty measure along with its official figures. According to the supplemental data, the poverty rate in the U.S. was about 15.3 percent—0.4 percentage points higher than the report’s official rate. But the additional measure shows differences in age groups. For instance, those under the age of 18 have a poverty rate of 16.7 percent—quite a bit lower than the 21.5 percent reported in the main findings. For older Americans, the tweaked metrics paint a grimmer picture, with the share of seniors living in poverty reported as nearly 5 percentage points higher than the official measure.

Poverty Rates: Official Versus Supplemental

Census

The more inclusive measures might  help monitor the effectiveness of programs meant to increase the well-being of specific populations, such as children or the elderly. Still, the use of an official, blanket income level remains a crude means of identifying families that are having a difficult time putting roofs over their heads or food on the table, especially considering the vast differences in cost of living around the country. To better understand the persistent poverty problem requires greater attention to nuanced and localized data that can better illustrate areas where the cost of essentials are outstripping income and benefits, and where families continue to suffer.

An interesting development. Now the vetting of the new measurement tool can begin and I’m guessing that this won’t satisfy too many people.

A political question: would any administration allow the official government definition of poverty to change if it meant that the rate would increase during their time in office? This isn’t just about measurement; there are political considerations as well.

Using behavioral science to improve interaction with government

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President Obama signed an executive order yesterday that promotes using behavioral science to make the government more user-friendly and efficient:

The report features the Social and Behavioral Sciences Team’s first year of projects, which have made government programs easier to access and more user-friendly, and have boosted program efficiency and integrity. As a result of these projects, more Servicemembers are saving for retirement, more students are going to college, more Veterans are accessing their benefits, more farmers are obtaining credit, and more families are gaining healthcare coverage.

The Federal Government administers a wide array of programs on behalf of the American people, such as financial aid to assist with college access and workplace savings plans to promote retirement security. Americans are best served when these programs are easy to access and when program choices and information are presented clearly. When programs are designed without these considerations in mind, Americans can incur real consequences. One behavioral science study found, for example, that a complex application process for college financial aid not only decreased applications for aid, but also led some students to delay or forgo going to college altogether.

Behavioral science insights—research insights about how people make decisions—not only identify aspects of programs that can act as barriers to engagement, but also provide policymakers with insight into how those barriers can be removed through commonsense steps, such as simplifying communications and making choices more clear. That same study on financial aid found that streamlining the process of applying—by providing families with assistance and enabling families to automatically fill parts of the application using information from their tax return—increased the rates of both aid applications and college enrollment.

On one hand, the administration suggests this improves efficiency and helps people make use of the help available to them. On the other hand, there are predictable responses from the other side: “Obama issues Orwellian executive order.”

These are not new ideas. Richard Thaler and Cass Sunstein (who tweeted the news of the executive order) wrote the 2008 book titled Nudge that makes policy recommendations based on such science. For example, instead of having people opt-in to programs like setting aside matched retirement savings or organ donor programs, change the default to opting out rather than opting in and see participation rates rise.

I imagine both parties might want to use this to their advantage (though it might might rile up the conservative base a bit more if it was made public) when promoting their own policies.

Can IL, WI, and IN work together to promote the region?

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Efforts to cross state lines to promote the Chicago region have not produced much:

With Illinois Gov. Bruce Rauner threatening to “rip the economic guts out of Indiana” and Indiana Gov. Mike Pence admitting to “a playful penchant to poach business from Illinois,” efforts to forge alliances within the tri-state metro area have been consigned to scholarly conferences and countless committee meetings, with scant tangible results…

In the global competition to attract business and talent, regions that collaborate to establish a brand, develop industry hubs, streamline transportation, foster a cultural scene and revitalize neighborhoods have a competitive edge, experts say…

Formalized regional collaboration is paying off for a number of major metropolitan regions, helping to stoke their economies and lure new residents. Denver-area taxpayers have anted up repeatedly for cultural and transit projects that have revitalized the city. Portland and its suburbs worked together to rev up exports. Metro Minneapolis’ tax-sharing strategy has helped reduce the gap between rich and poor communities. The communities lining the southern coast of Lake Michigan comprise the nation’s third largest economy. They are home to a rich assortment of businesses, an educated workforce, respected universities and a massive, if overloaded, transportation system.

But greater Chicago’s tepid growth rate is outpaced by a number of metropolitan areas with cohesive regional strategies. Denver, for instance, ranked No. 6 in economic performance among the nation’s 100 largest metros since its pre-recession peak, while Chicago was No. 77, according to Brookings Institution data.

This is a good example of how relatively arbitrary political boundaries limit the ability to operate within day-to-day social boundaries. The Chicago region exists as an interdependent whole and it cross state lines into Wisconsin and Indiana as well as includes hundreds of Illinois municipalities. Yet, politicians are elected to represent their particular geographic area and don’t get much credit if nearby areas also do well. Voters don’t have broad views of regions – efforts to support metropolitan institutions and bodies are often voted down across the United States – and prefer to exercise local control. Thus, politicians hunker down and do what they can to boost their particular chances even if what they can do is affected by what these nearby leaders do. For example, see Indiana’s ongoing effort to attract Illinois businesses. In contrast, see what a 2012 OECD report said could be done across the Chicago region.

Given the issues facing the region (from mass transit to stormwater management to poverty to affordable housing to jobs to population decreases and more), one would hope that the various leaders and governmental bodies will start working together before it might be too late to do anything productive.

“The best political music is generally more sociological in bent”

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A journalist suggests the best political music is sociological music:

[T]he most explicit political songs are often pedantic and cringeworthy, while the best political music is generally more sociological in bent, from Springsteen’s best to Kendrick Lamar’s vivid rhymes.

The first two songs that came to mind were these: “Eleanor Rigby” by the Beatles and “Common People” by Pulp. Both songs are sociological commentary with the first considering the lonely life and the second addressing a woman who wants to slum it and experience the life of “common people.” One is sharper in its approach than the other – Paul McCartney has a certain distance from the character while Jarvis Cocker suggests the girl doesn’t really understand what is going on – but neither is overtly political even as they draw attention to important social issues.

Yet, where exactly the line is between the overly political and strongly sociological is difficult to determine. Some of this may be on the political activities of the music artist; if they are known activists, their music may be interpreted in such a way. Some songs have a beat or rhythm that inspires group behavior – maybe a more martial or driving beat? – while a song like “Eleanor Rigby” wouldn’t exactly inspire physical action with its string quartet. Songs can also later become adopted by protest movements or political leaders without the support of the artists. And, most mass media sources don’t do a whole lot with angry music – much pop or rock music is upbeat or is more veiled if it is about negative topics.

The formula to resettle refugees in European countries

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How will refugees be dispersed among European countries? This formula:

On Wednesday, shortly after European Commission President Jean-Claude Juncker announced a new plan to distribute 120,000 asylum-seekers currently in Greece, Hungary, and Italy among the EU’s 28 member states, Duncan Robinson of the Financial Times tweeted a series of grainy equations from the annex of a proposed European regulation, which establishes a mechanism for relocating asylum-seekers during emergency situations beyond today’s acute crisis. Robinson’s message: “So, how do they decide how many refugees each country should receive? ‘Well, it’s very simple…’”

In an FAQ posted on Wednesday, the European Commission expanded on the thinking behind the elaborate math. Under the proposed plan, if the Commission determines at some point in the future that there is a refugee crisis in a given country (as there is today in Greece, Hungary, and Italy, the countries migrants reach first upon arriving in Europe), it will set a number for how many refugees in that country should be relocated throughout the EU. That number will be “not higher than 40% of the number of [asylum] applications made [in that country] in the past six months.”…

What’s most striking to me is the contrast between the sigmas and subscripts in the refugee formula—the inhumanity of technocratic compromise by mathematical equation—and the raw, tragic, heroic humanity on display in recent coverage of the refugees from Syria, Afghanistan, Eritrea, and elsewhere who are pouring into Europe.

The writer hints at the end here that the bureaucratic formula and stories of human lives at stake are incompatible. How could we translate people who need help into cold, impersonal numbers? This is a common claim: statistics take away human stories and dignity. They are unfeeling. They can’t sum the experiences of individuals. One online quote sums this up: “Statistics are human beings with the tears wiped off.”

Yet, we need both the stories and the numbers to truly address the situation. Individual stories are important and interesting. Tragic cases tend to draw people’s attention, particularly if presented in attractive ways. But, it is difficult to convey all the stories of the refugees and migrants. Where would they be told and who would sit through them all? The statistics and formulas help give us the big picture. Just how many refugees are there? (Imagine a situation where there are only 10 refugees but with very compelling stories. Would this compel nations to act.) How can they be slotted into existing countries and systems?

On top of that, you can’t really have the nations of today without bureaucracies. We might not like that they are slow moving or inefficient at times or can be overwhelming. How can you run a major social system without a bureaucratic structure? Would we like to go to a hospital that was not a bureaucracy? How do you keep millions of citizens in a country moving in a similar direction? Decentralization or non-hierarchical systems can only go so far in addressing major tasks.

With that said, the formula looks complicated but the explanation in the text is fairly easy to understand: there are a set of weighted factors that dictate how many refugees will be assigned to each country.

Indiana again takes aim at Illinois businesses

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The Illinoyed campaign ended but Indiana has a new strategy to lure Illinois businesses. From the featured story on the A State That Works website:

The state of Illinois has been drowning in debt for years due to mismanagement, and their only solution is to keep raising taxes. Sound familiar? Illinois taxpayers have been picking up the tab for longer than anyone cares to remember, but it wasn’t always that way.

Ten years ago Indiana and Illinois had the same AA credit rating, but the unfunded pension debt crisis in Illinois has steadily deteriorated over the years, to the point that their current credit rating of A- is the worst in the nation.

Illinois is borrowing a staggering amount of money to pay for state services and they’re seen as a bad risk to keep making those payments, according to the rating agencies. In fact, the interest alone on Illinois’ unfunded liabilities is about $1.5 billion per year…

Indiana is deliberately making smart financial decisions and defining what a state can do to pass the savings of efficient government on to their taxpayers by eliminating debt, keeping taxes low and continually balancing their budget.  It’s a refreshing change from a state like Illinois that has taxpayers picking up the tab for a public debt-management crisis, and it’s what makes Indiana a state that works.

Such efforts have been going on for quite a while yet I haven’t seen evidence that shows a campaign like this works. I’ve long suspected this is more about scoring easy political points than anything else; “look at the good things happening in Indiana while Illinois languishes.” Yet, somehow the Chicago region with its 9+ million people hangs on and the city is continually ranked as one of the top 10 global cities in the world.

One side note: part of northwest Indiana is in the Chicago metropolitan region. According to this campaign, some might get the best of both worlds: the residents and businesses get the lower taxes, less political gridlock, and less debt yet get to take advantage of the jobs and other opportunities the Chicago area offers. In the long run, a significant decline in Illinois or Chicago’s fortunes probably would have some residual negative effects not just on northwest Indiana but also the entire state.