Tuesday, March 15, 2011

Will the Tea Party benefit cities?

Edward Glaeser makes an interesting point:
Big cities are not typically Tea Party territory, but if the new Republican members of Congress apply their libertarian principles assiduously to a few key federal policies, they could do much for urban America.
Residents of dense downtowns should urge Tea Partiers to take up the fight against socially engineered suburbia through federal homeownership subsidies and sprawl-inducing federal highway spending.
A strong Tea Party push for choice and charter schools could help city children. Even keeping marginal tax rates low is – in effect, if not in intent – pro-urban, because metropolitan workers typically earn more.
These are good points.  However, any help the Tea Party gives to cities will be accidental.  They are under the mistaken impression that their hard-earned dollars are being taken and spent in the cities, when in reality, the progressive tax system hits high-earners in the cities much more than lower-earners in the rural areas.  Therefore, the Bush tax cuts benefit those city residents much more than they benefit the Tea Party members in the boondocks.  We'll see what happens, but my guess would be that the Tea Party will play the role of the evangelicals in the Republican Party (these groups overlap significantly), they'll turn out and vote for the Republicans, then be ignored by the business interests, meanwhile growing that much more angry.

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