American Nightmare

American Nightmare
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The American Dream turned into a nightmare when the housing bubble burst, and people have been trying to figure out who to blame- Greedy bankers? Corrupt politicians? Ignorant homeowners? In American Nightmare: How Government Undermines the Dream of Homeownership, Randal O'Toole explores the forces at play in the housing market and shows how we can rebuild the American dream of homeownership by eliminating federal, state, and local policies that distort the free market for housing.

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Randal O'Toole. American Nightmare

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Dedicated to the memory of my friend Chris Walker, whose work on land-use and transportation issues should inspire everyone who supports free markets and freedom of choice.

Founded in 1977, the Cato Institute is a public policy research foundation dedicated to broadening the parameters of policy debate to allow consideration of more options that are consistent with the traditional American principles of limited government, individual liberty, and peace. To that end, the Institute strives to achieve greater involvement of the intelligent, concerned lay public in questions of policy and the proper role of government.

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Indiana, North Carolina, and Texas have all given cities strong annexation powers. Indianapolis has 64 percent of the population of its urban area; Charlotte has 71 percent; Houston has 51 percent; and San Antonio has an amazing 86 percent. By comparison, Los Angeles has 31 percent of the people in its urban area; Orlando just 16 percent; and Portland, Oregon, 33 percent, all in states whose cities can only annex with the permission of the people being annexed.

Some correlation appears to exist between states with weak annexation powers and states that have passed growth-management laws giving regional planners the power to plan all the cities in an urban area. Virtually all the states with growth-management laws have weak annexation authority. Apparently, if cities cannot gain control of their suburbs through annexation, they will attempt to use other means, such as regional growth-management planning, to do so. This correlation suggests that a lot of the debate over urban sprawl, which is covered in detail in Chapters 7 and 9, is really a debate over who gets to control growth and tax revenues.

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