Hopkins Academics Write Wall Street Journal Piece on Baltimore’s Economic Troubles

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Courtesy of Citybizlist – Steve Hanke and Stephen Walters penned an opinion piece in The Wall Street Journal called How Sunday’s NFL Cities Became Champs in which they argue that three of the four – Boston, New York, and San Francisco – have boasted sustained growth, prosperity, and quality of life due to environments conducive to private capital and the protection of property rights.

Baltimore, by contrast, has lost 21 percent of its population since around 1980 because of the city’s misguided capital and property taxes, they claim.

Hanke is a professor of applied economics at the Johns Hopkins University; Walters is a fellow at Hopkins; Institute for Applied Economics, Global Health, and Study of Business Enterprise.

Some highlights:

– “While no single factor explains any city’s destiny, it is not a mere coincidence that Boston, New York and San Francisco reversed their declines at the exact moment they became favorable environments for private investment in residential and business capital.”

– “Baltimore has blithely ignored basic property-rights theory. When high property taxes chased many residents and business owners to the suburbs, the city raised rates further. When grandiose slum-clearance and transit plans destabilized neighborhoods, Baltimore’s one-party establishment arranged eminent-domain seizures and pushed even more “big footprint” renewal projects.”

– “The results leave no doubt about which strategy is more effective. Baltimore’s real, median household income has been stagnant for the last three decades. New York’s has risen 22% while Boston’s and San Francisco’s have soared by half. Baltimore’s 2009 homicide rate was 4.7 times Boston’s and 6.7 times New York’s and San Francisco’s.”

Read the full story herehttp://tinyurl.com/89kr2yh

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