All the ways we subsidize growth

Over at, I reflect on a recent event I attended, ““Kicking the Habit: Unsustainable Economic Growth” that featured contributor Chuck Marohn delivering his Strong Towns message.  I focus on one issue that is featured prominently in the Strong Towns narrative: intergovernmental transfer payments which subsidize growth and potentially hide the true cost of development.

In Minnesota, we build roads really well. If you look at the metro area, we’ve created a system where despite wide differences in job and housing density, commute times are virtually the same whether you live in Dahlgren Township or Loring Park in downtown Minneapolis. We also have a semi-famous regional government that makes connection to the same wastewater system easy, no matter where you are in a 7-county region that includes both farms and skyscrapers. All these things (and more) are made possible by shared resources, often collected from one area or community type, and sent to another with a different character. Somehow we’ve determined that this is a good thing (for ease of access, equity, environmental protection, political will, etc) As I listened to Chuck I thought, “you’d really have to remake how local governments interact if you wanted to promote (or even test) the idea that our “most productive places” should be differentiated from our least productive.

I won’t attempt to figure out how this can be done. But I think it’s valuable to think about all these “transfer payments”. There are more than most people ever think about. So, here goes:

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