How to stop housing prices from dropping, conserve energy, reduce the price of oil, clean the air, and spur innovation to re-stimulate the economy. All without spending a dime.
1. Immediately repeal residential zoning density limits within a quarter mile of light rail stations, and place a moratorium on all new car-dependant suburban development. The value of transportation accessible tracts would immediately increase. Those who still want to live in a tract home would see their home values increase, since their homes are now a rare commodity that isn’t being produced any more. Developer losses from new development in the suburbs would be offset by gains in urban construction. With reduced reliance on the automobile, fuel consumption would decrease and the air would clean up.
2. Reform the patent system. Compulsory licensing of all patents, with limited payouts to patent holders, based on a reasonable percentage of the revenue from products created, with a very short statute of limitations for filing claims against the infringers. In other words, make it illegal to hold a patent for the purpose of suppressing an invention. Innovators would now be able to move forward without fear of patent litigation. From their point of view, the patent system would become a relatively benign tax rather than the octopus that it is now.
Of course, I realize these are sweeping reforms expressed in simple language. The devil’s in the details, and any actions along these lines would be dramaticly more complicated. In particular, any zoning reforms would be difficult to do in a broad sweeping fashion. It might have to be done the same way that the 55 mph speed limit was enacted: withold Federal funds from local governments that don’t comply. Given that, it wouldn’t really be cost free; but since the Federal government is already handing out money any way, it might as well be handed out with some strings that will move us in a worthwhile direction.
Notice that I didn’t mention banks or car companies at all here. There are plenty of other things that are screwed up about the way our country is run, that have nothing to do with that stuff. Yes, of course we need to regulate the banks. Yes, we can’t just dump hundreds of thousands of auto workers onto the doll over night; but that’s beside the point. Oh, but if GM gets even one red cent, it should be on the condition that the CEO of GM personally delivers an EV-1 to every former leaseholder that wanted to buy one.
