The Abundance Agenda: A Promising Path or a Political Trap?

The Allure of Abundance Liberalism

A new breed of thinkers, dubbed "abundance liberals," is captivating attention with a vision of a future brimming with clean energy, affordable housing, and technological marvels. They argue that excessive regulation is stifling innovation and progress, preventing us from achieving this potential.

Ezra Klein, Matt Yglesias, and Derek Thompson are among the leading voices advocating for this "abundance agenda," a blend of progressive social goals, libertarian deregulation, and a focus on national greatness achieved through tangible improvements in quality of life.

The Housing Crisis: Zoning as the Culprit?

Abundance liberals point to restrictive zoning laws as a primary driver of the housing crisis, particularly in affluent coastal cities. They champion the YIMBY movement and advocate for eliminating these restrictions to unleash a wave of new construction.

While some reforms have been enacted, the results have been modest. The reality is that demand for multi-family housing in traditionally single-family neighborhoods is lower than anticipated, and developers aren't rushing to build affordable units.

"The demand for two-flats and four-flats in car-dependent residential neighborhoods dominated by single-family homes just isn't that high," says Chris Leinberger, a development consultant and professor emeritus of real estate at George Washington University.

Furthermore, this approach risks alienating homeowners and creating a political backlash that could harm the broader liberal agenda.

A Better Way to Build: Density Near Transit

Instead of battling homeowners, abundance liberals should focus on promoting dense residential development near transit hubs, as seen in Arlington, Virginia, and Rockville, Maryland. These "walkable communities" offer desirable amenities and access to transportation, attracting developers and potentially easing housing costs without the same political pitfalls.

Minneapolis, after seeing limited success with residential zoning reforms, achieved significant progress by lifting height restrictions on commercially zoned land near transit corridors, leading to a boom in apartment construction and a measurable impact on affordability.

The Energy Bottleneck: Beyond Permitting Reform

Abundance liberals rightly identify the need for expanded energy generation and transmission capacity. They criticize the National Environmental Policy Act (NEPA) for enabling lawsuits that delay crucial projects.

However, they overlook a more significant obstacle: the entrenched power of incumbent utilities. These monopolies prioritize fossil fuel investments and employ tactics to hinder renewable energy integration, from slow-walking grid connections to lobbying regulatory boards.

The Overlooked Elephant: Corporate Power

While abundance liberals focus on bureaucratic inefficiencies, they remain largely silent on the role of corporate monopolies in hindering progress. From health care to defense spending, consolidated industries contribute to rising costs and stifled innovation.

“While devoting so much attention to progressive contradictions, abundance liberals are almost completely silent on the alliance between corporate behemoths and antigovernment politicians that is the biggest threat to the world of plenty they envision, not to mention the republic.”

Rethinking the Path to Abundance

The abundance agenda offers a compelling vision, but it needs a broader perspective. Simply streamlining regulations won't suffice. We need to rebuild government capacity, strengthen antitrust enforcement, and confront the power of entrenched monopolies.

Getting rid of the stupid rules that slow progress and add unnecessary costs is an excellent idea. But it’s not remotely capable, by itself, of unleashing the prosperity and plenty that abundance liberals promise.

The Trump-Musk Factor: A Catalyst for Change?

The current assault on the federal bureaucracy, spearheaded by Elon Musk, may ultimately backfire. Epic government failures could galvanize public support for strengthening the administrative state and challenging corporate power, creating an opportunity for a more comprehensive agenda that addresses the root causes of our current challenges.