A report by Smart Growth America is calling for an examination of federal real estate spending.
Currently the American government subsidizes suburban sprawl to the tune of $450 billion per year, and the report argues that this essentially redistributes funds from the poor to the rich.
The report calls for lawmakers to support all types of housing, reinvest in existing neighbourhoods, create a safety net for American families, and help strengthen the beleaguered middle class.
Image By IDuke via Wikimedia Commons
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There is absolutely no causality demonstrated in the report. There is no demonstration of an intentional bias in ‘subsidies’ . The conclusions are based on a ergo propter hoc premise.
There are good arguments to be made regarding the impact of subsidies in real estate development This is not one of them.