RAE on “Smart Growth” and Affordable Housing

I’ve never been to Portland, but it’s supposed to be the crown jewel of enlightened, progressive urban development. From what I gather, “enlightened, progressive urban development” means cramming tons of people into small spaces and protecting pristine wilderness from human encroachment. Magically, this will somehow produce upper-middle class jobs for everyone who wants one and oodles of “affordable housing.” I say “magically” because increasing the cost of entrepreneurial activity and sharply restricting the amount of land that can be put underfoot cannot create new jobs or new housing. At the very best, these interventions will retard job and housing growth or lead to Bay-area style gentrification. For the interested reader, the latest issue of the Review of Austrian Economics contains a symposium on “smart growth” and urban interventionism, with a particularly interesting discussion of Portland’s transformation. It’s worth a look.