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10/27/2021

The Politics of Abundance

By Matthew Yglesias, Slow Boring
The Politics of Abundance

The Politics of Abundance

"it’s important for policymakers to actually target the sources of scarcity...It means not treating distributional questions as the whole ball game and not treating subsidies as the only possible policy tool."


What It’s About

Yglesias calls for political leaders to tackle economic scarcity, especially in housing, healthcare, and education. Using the analogy of water scarcity in the fictional “Dune universe,” he illustrates how policy prevents the proper number of goods and services from being provided, creating competition (i.e., higher prices and desperation) for what remains. These circumstances can reinforce themselves, as people come to think of these things as fundamentally and necessarily scarce, and that mindset influences policy.

Upshot

Yglesias argues:

  • Scarcity Fuels Inequality: Shortages of goods and services disproportionately harm poor Americans
  • Abundance Requires Reform: Regulatory barriers in housing, healthcare, and education reduce supply and drive up prices
  • Target Scarcity at Its Source: Policymakers should focus on specific high-impact solutions such as reducing zoning laws, removing medical residency caps, and investing in education innovation

Did you know? Housing accounts for over 30% of the Consumer Price Index (CPI)—making it one of the most potent drivers on inflation. 

Read the Full Article

Why It Matters

Yglesias shows scarcity as a feedback loop, especially in housing. Solving scarcity is fundamental to building a country with real, widespread opportunities to thrive. Traditional solutions that simply subsidize consumption won’t do it. 

Who Wrote It

Matthew Yglesias is the founder of the Slow Boring newsletter and a prominent commentator on politics, public policy, and economics. 

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