The "London Consensus" posits that traditional economic policy fails by ignoring people's attachment to "place." Citizens are reluctant to relocate for jobs due to community ties, leading to left-behind regions. Policy should therefore focus on strengthening local communities, not just chasing abstract national GDP growth.
The US is a federation of nine distinct regional cultures whose centuries-old values are stronger predictors of life expectancy, economic mobility, and even credit scores than traditional factors like wealth, race, or education.
This academic field builds economic theory from case studies, interviews, and data. It avoids the flawed, abstract assumptions of "rational actors" and "efficient markets" that are common in traditional top-down economic models.
The drive for hyper-efficiency, seen in targeted ads or ghost kitchens, eliminates the valuable "slosh" that funds culture and journalism. This friction and inefficiency are essential for creating vibrant cities and healthy economic ecosystems, as they provide the space for creativity and community to flourish.
While national politics can be divisive and disheartening, city-level initiatives offer hope. In a local context, people are neighbors who must collaborate, respect each other's humanity, and work towards a common goal of improving their community. This forced cooperation creates a positive, inspiring model for progress.
The common belief that people oppose new housing to protect property values is likely wrong. A more rational explanation is that residents are protecting their existing quality of life from negative externalities like noise and traffic. Pro-housing arguments should therefore focus on improving neighborhoods, not shaming residents.
Gaurav Kapadia explains that Queens' GDP growth wasn't fueled by massive new infrastructure projects, but by leveraging existing transit and increasing housing density around it. This was often achieved through informal means, like his parents' 'house hacking' by converting a two-family home into a four-family one.
OKC transformed its economy by investing in quality of life amenities through a sales tax. This attracted residents first, proving that a city's livability is a primary driver of economic growth, rather than direct business incentives.
A mix of old and new buildings is crucial for a vibrant neighborhood. Because new construction is expensive, it drives up rents, excluding smaller businesses and lower-income residents. Older buildings provide the affordable spaces necessary to foster a diverse economic and social ecosystem.
While US cities have infrastructure flaws, America's true strength is creating the world's most desirable suburbs, where people report being happiest. This lifestyle model is a key cultural feature that China's control-oriented system cannot replicate.
Data analysis across health, wealth, safety, and longevity reveals that regions prioritizing communal well-being consistently achieve better outcomes than those prioritizing radical individual liberty, challenging a core American political narrative.