Only Nixon could go to China, only @PhilTwyford could reform the RMA?

Right-wing politicians can sometimes implement policies that left-wing politicians cannot, and vice versa under Cowen and Sutter’s only Nixon can go to China theorem:

The point is that politicians with a previous record of opposing a policy shift are often the only ones who can bring it about, because their policy support provides a credible signal of policy quality to the relevant interest groups who would otherwise oppose the policy.

Contemporary wisdom has it that only Nixon could go to China and make a deal because his decades of fierce anti-Communist stance gave him credibility with fellow conservatives and shielded him from any domestic attack.

Cowen and Sutter say that a policy could depend on information – on which policies or values everyone could potentially agree, or on which agreement is impossible.

Politicians, who value both re-election and policy outcomes, realise the nature of the issue better through inside and secret information and superior analytical skills (or access to those skills), whereas voters do not have access to such information base or skills.

Only a right-wing president can credibly signal the desirability of a left-wing course of action. A left-wing president’s rapprochement with China would be dismissed as a dovish sell-out. Nixon must be going to China because that is the best possible policy choice and he would never do so otherwise giving his previous record of firm anti-Communism.

Left-wing parties adopt right-wing policies because they are good ideas that will get them re-elected. Bob Hawke, Tony Blair, and Bill Clinton were centre-left economic reformers who can credibly signal the desirability of their economic reforms because of the brand name capital they invested in distributional concerns and protecting the poor.

The same goes for reforming the Resource Management Act (RMA) in New Zealand. Only a left-wing government can implement major reforms such as abolishing the Auckland urban limit and other restrictions on land supply. Deregulation is normally a right-wing policy.

When a left-wing policy undertake reform of land use regulation, things must be so bad on the housing affordability front that they accept that the reforms must be done despite their natural reluctance to deregulate anything on ideological grounds.

Up until past the 2014 New Zealand election, the Labour Party undertook scare tactics on land use regulation reform as a way winning votes from environmentally leaning voters.

Housing affordability situation is now so bad, with a whole generation locked out of housing, that even the ideological opponents of deregulation accept that restrictions on the housing supply are a bad idea.

Naturally the Greens continue to have their head in the sand. That is the big difference between them and the Labour Party. The Greens are policy dilettantes. The Labour Party is made up of people who believe in making difficult choices and the need for trade-offs.

Most Streets in Japan Don’t Have Names

#Morganfoundation @top_nz do not understand the transitional gains trap

It is unfortunate that the Morgan foundation economists and purported economists do not understand the concept of rent capitalisation when discussing tax concessions for housing in New Zealand.

The classic example is how restrictions on supply result in the capital value of taxi licenses going up, and now through Uber, collapsing.

The same goes with a tax concession for any particular asset. The value of the tax concession will immediately capitalise through a spike in prices.

After that, the underlying trend price growth will continue. For housing prices to continually rise, there must be a restriction on the supply of land. Tax treatment changes will only result in transitory price spikes.

There is nothing special about private homes have been an exemption from capital gains tax in New Zealand. What matters is the restriction on land supply.

Europeans live in cupboards compared to America’s poor @greaterauckland @JulieAnneGenter

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.@PhilTwyford @JulieAnneGenter finest hour on housing affordability

https://twitter.com/PhilTwyford/status/852273279213555716

Back when I was to evict a drug addict from a rented house and throw him out on the street

While feuding with strangers on Facebook, I remembered I sat on the student housing committee as Treasurer of the Tasmanian University Union.

The committee worked very well because when students were defaulting on their rent or otherwise would be difficult, it was common for a member of the committee should know them. They could comment on whether the student was short of money or spending their money on alcohol or drugs often with them at the pub on Friday night. Several of us lived at university colleges so we knew lots of people. I told the committee to come down hard on one defaulting tenant because I knew he was wealthy and he just did not want to pay. He was just trying to on because he did not like to pay bills. We had the same problem with him paying the student club fees at my college.

I had a rather sleepless weekend because on Monday morning it was going to be the job of the committee to go around together and evict a student who refuse to pay his rent and refused to communicate with the housing officer, who was a professional housing officer. On Monday morning, I was greatly relieved to hear that he got in contact so he was not going to be evicted. I was one of several who knew of his drug habit.

My brother-in-law was a youth housing officer at the office of emergency housing in an Australian state. To do his job properly he had to face the world as it is. 

He said that the clients he dealt with, the teenagers and so forth, would never be taken in by a private landlord because they do not pay their rent, damage the place and invite all their mates over for parties. He believed everyone should have a house, but he did not pretend they are all model tenants.

Wouldn’t banning overseas landlords reduce the supply of rental housing?

Both the Labour Party and the Greens as well as the local Donald Trump want to ban foreigners from buying houses in New Zealand.

Seems to me that if you want to increase the supply of rental housing to reduced rents to poor families, you would want to encourage absentee landlords rather than first-time buyers. Is my logic wrong?

 

 

Monocentric city land use explained

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Economics of California’s AB32 Global Warming Regulation

@NZLabour policy only needs to be this single paragraph @PhilTwyford; the rest is populist overkill that will make things worse

Source: Housing – New Zealand Labour Party.

Up, up and away with the RMA

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Home ownership in 2013 was at its lowest rate since the 1950s.

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Source: A century of censuses – dwellings and households.

The Apartment – Seinfeld – rent control

Home ownership by age

homeownership in New Zealand

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Weekly rents across New Zealand

Mean_weekly_rents_by_region_in_New_Zealand

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