Has the Government Been Bailing Out Sprawl?
One of the themes of the financial and economic crisis we’ve faced
over the past two years is that government, pressed into responding to
serious economic pain, has often found itself supporting the activities
that got us into this mess in the first place.
Sign of the times? Sde-by-side foreclosures in Massachusetts. (Photo: Yovani via Flickr)Irresponsible
behavior by banks led them to the brink of collapse — a collapse which
would have sent the global economy into a terrifying period of decline
– and so the government stepped in to prevent bank failures (after
learning a lesson from the dreadful experiment with Lehman). But these
interventions have put banks in a situation where they stand to gain
enormously from taking large and dangerous financial bets.
Similarly, government policies such as low gas tax rates and
import protections on light trucks encouraged the development of a
bloated domestic auto industry focused on the production of inefficient
SUVs.
When high oil prices and deep recession then
threatened to push General Motors and Chrysler into bankruptcy, leading
to hundreds of thousands of lost jobs, the government felt it had no
choice but to step in to keep the companies afloat.
Now the
government owns large stakes in companies that will only profit if the
American public goes car-buying crazy over the next few years.
The
list goes on. The economic crisis that currently afflicts us has made
it clearer than ever that we need to change the way we do many things,
but because the economy is in such difficult shape, it is hard to
pursue anything other than policies designed to keep the economic
engine from stalling out completely. Big transitions must wait for
later.
Can the same be said for sprawling urban development?
Have government interventions essentially bailed out the very places
that proved most vulnerable amid oil shocks and housing busts?










