The purpose of policy is to produce certain results, but, frequently, once in place, changes in policies are resisted even when conditions require them. Take two examples that have become more obvious in recent days, one with respect to health care, another to housing and home ownership.
In The Atlantic, economist Richard Florida takes a long view of the world economy. He says that long depressions are opportunities for the economy to reset itself. During these hard times, large numbers of people change their economic lives, taking the country into a new economic era.
Lately some have been advocating that the government stop subsidizing home ownership, arguing that it locks people to a place, and when the economy goes sour people need the flexibility to go where the jobs are.
Richard Florida, in The Atlantic Monthly article argues that the key to recovery from the housing bubble and financial crash is to remove homeownership “from its long-privileged place at the center of the U.S. economy.”