[MissoulaGov] Richard Florida - How the Crash Will Reshape America

[Jim McGrath]

Russ,

While I agree with the concept that "artificial demand for bigger
houses" is problematic, I disagree with the idea that homeownership
should no longer be central to the economy. The fact is that households
that are buying or own their own home have substantially more net worth
than households who rent. Without some other means of economically
vesting households, homeownership will remain the primary means that
most of us can create wealth. I would not like to see social policy that
encouraged most households to remain without that opportunity.

-----Original Message-----
From: missoulagov-bounces at cmslists.com
[mailto:missoulagov-bounces at cmslists.com] On Behalf Of Russ Fletcher
Sent: Saturday, February 14, 2009 1:20 PM
To: missoulagov at cmslists.com
Subject: [MissoulaGov] Richard Florida - How the Crash Will Reshape
America

Interesting views from Richard Florida of "The Rise of the Creative 
Class" fame.


> So how do we move past the bubble, the crash, and an aging, 

> obsolescent model of economic life? What's the right spatial fix for 

> the economy today, and how do we achieve it?

>

> The solution begins with the removal of homeownership from its 

> long-privileged place at the center of the U.S. economy. Substantial 

> incentives for homeownership (from tax breaks to artificially low 

> mortgage-interest rates) distort demand, encouraging people to buy 

> bigger houses than they otherwise would. That means less spending on 

> medical technology, or software, or alternative energy-the sectors and



> products that could drive U.S. growth and exports in the coming years.



> Artificial demand for bigger houses also skews residential patterns, 

> leading to excessive low-density suburban growth. The measures that 

> prop up this demand should be eliminated.

>

Paul Romer famously said, "A crisis is a terrible thing to waste."


        Richard Florida - How the Crash Will Reshape America
        <http://matr.net/article-33011.html>




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