Joe, I totally, agree with your implication that new and excellent housing can change behavior. I would bet without additional research, that the Pruitt-Igoe approach grew out of the behavioral sciences of the universities. I heard in some of my organizing and management class, if you take individuals out of the SLUMS, and place them in a "new" environment you can change behavior. This was implement during the Carter administration, as the Community Reinvestment Act.. The Pruitt - Igoe experiment, placing the culture in apartments did not work.
Fast forward, the same behavioral approach was revised under the Clinton administration. This revision, if we gave the occupants ownership in their own home, you could again change behavior.
Greenspan, the FED chief at the time encouraged banks to make 100% loans to potential owners with poor credit rating. He also, encouraged homeowners to get the lower "balloon, 3-5 year loans," which had the lowest interest rates. Well we know what happened, especially after these bad loans with the balloons came up to renewal, individuals walked away from their loans and houses. During this build process, pure economics of "supply and demand," came into play with house sky rocketing doubling or tripling in price. Many investor bought real estate to flip the house. Then, when the demand crashed, and we had a glut of houses on the market, the market and our economy crashed. However, some of Wall Street saw the problem coming, bought a form of insurance, "credit default swaps," from AIG, packaged the bad debts with the good debt and sold the package as AAA rated to investors over the World. (See , "The Big Short," by Michael Lewis,)
Would you believe, Joe, I am saying that George W. Bush, solely was not responsible for this economic problem. He, Paulsen, Bernanke, and Geither, during Sept. 2008 saved our economy. I would place the fault on a faulty behavioral theory which did not work. This really poses a problem for the US with globalization, technology (robots, computers, etc.) replacing individuals so that we stock holders can maximize our portfolio, energy and food cost increase created from a lack of rain, unskilled individuals to perform the high tech positions which are available, increased uncontrolled population explosion, capitalism taking jobs to the lowest cost providers Worldwide, and a lack of an educated/trade workforce.
Honestly, who ever is President will have these same problems to encounter. I have empathy for who wins the position. But, we must remember, politics is all about "WINNING." The cost of winning is tremendous.
JMHO |
