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Day 1358 and I Must Subsidize Demand

There is a beloved meme in communities like YIMBYism (a movement advocating for building more housing with the slogan “yes in my neighborhood”) in which the protagonist agonizes over subsidizing demand as the cyclical pattern of rising demand giving rise to rising cost carries on.

“I just need to subsidize demand”

America is a strange place where we espouse a lot of free market policies but we tend to favor subsidies as a solution. Which isn’t always a bad thing. Sometimes there are good reasons for providing support for things that aren’t as commercially viable immediately like pure science or education or other public goods.

It is however not the only policy tool available to people. A fun fact about how I have a good time, my participation in civic life was as an appointee on the New York City Community Boards. I was part of a group who approve licenses and permits for things like liquor and parades and the like. I also served on quality of life and transportation boards. I also did monthly meetings for land use.

I was easily the youngest person who volunteered time and I learned a lot about how damn many rules we have at every level from neighborhood to city and state on everything from ventilation and to environmental review. And some of those rules are pretty good things!

But it would be preposterous to say that all rules are good and that every part of the process of starting a business (large or small) is easy. Some problems you can’t through money at and fix. Or if you can it creates a whole unintended set of other problems. Like paying for lawyers and consultants.

Because Twitter is the land of any old idiot getting a say (just like a community board meeting) I’ve got every flavor of opposition and missing the point on this tweet.

We do a lot well in America. It’s relatively much easier to start an LLC and get a license to do business. Complying with everything from the liquor board to FinCEN will take a little more. Anyone who has run a business can tell you about their corner of the universe and the paperwork involved. Just ask my husband who spends most of his time as a businessman keeping up with paperwork.

I think it’s perfectly fine to be skeptical that throwing more money at a problem like how challenging it is as a business owner to contend with government bureaucracy. Demand subsidies can only fix so mich. It’s just a lot more complicated than that. Be smart and don’t let your head spin like our meme gentleman.

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