Matt Yglesias has a blog post called Make Blue America Great Again, about governance in rich liberal states like New York and California. He talks about various good government issues, and he pays a lot of attention specifically to TransitMatters and our Regional Rail project for the Boston region, so I feel obliged to comment more on this.
The basic point Matt makes is that the quality of governance in rich liberal American states is poor, and as a result, people do not associate them with wealth very consistently. He brings up examples about the quality of schools and health care, but his main focus is land use and transportation: the transportation infrastructure built in New York, California, etc. is expensive and not of high quality, and tight zoning regulations choke housing production.
That said, I think there’s a really important screwup in those states and cities that Matt misses: the problem isn’t (just) high costs, but mostly total unwillingness to do anything. Do-nothing leaders like Charlie Baker, Andrew Cuomo, Gavin Newsom, and Bill de Blasio aren’t particularly interested in optimizing for costs, even the first two, who project an image of moderation and reason.
The Regional Rail proposal’s political obstacles are not exactly a matter of cost. It’s not that this should cost $4 billion (without the North-South Rail Link) but it was estimated at $15 billion and therefore there’s no will to do it. No: the Baker administration seems completely uninterested in governing, and has published two fraudulent studies making up high costs for both the North-South Rail Link and rail electrification, as well as a more recent piece of fraud making up high costs for Boston-Springfield intercity rail. The no comes first, and the high costs come second.
This history – no first, then high costs – is also the case for New York’s subway accessibility program. The MTA does not want it; the political system does not care either. Therefore, when disability rights advocates do force some investment, the MTA makes up high costs, often through bundling unnecessary investments that it does want, like rebuilding station interiors, and charging these projects to the accessibility account. A judge can force an agency to build something, but not to build it competently and without siphoning money.
I want to emphasize that this does not cover all cases of high American costs. Second Avenue Subway, for example, is not the result of such a sandbag: everyone wants it built, but the people in charge in New York are not competent enough to build it affordably. This does accord with Matt’s explanation of poor Northeastern and West Coast governance. But not everything does, and it’s important to recognize what’s going on.
The other important point is that these do-nothing leaders are popular. Baker is near-tied for the most popular governor in the United States with another do-nothing Northeastern moderate Republican, Maryland’s Larry Hogan. Andrew Cuomo’s approval rate has soared since he got 43,000 people in the state killed in the corona crisis.
People who live in New York may joke that the city has trash on the street and cockroaches in apartments, but they’re pretty desensitized to it. They politically identify as Democrats, and once corona happened they blamed Trump, as did many people elsewhere in the United States, and forgave Democrats who mismanaged the crisis like Cuomo. Baker and Hogan are of course Republicans, but they perform a not-like-the-other-Republicans persona, complete with open opposition to Trump, and therefore Massachusetts Democrats who have a strong partisan identity in federal elections are still okay with do-nothing Republicans. People who really can’t stand the low quality of public services leave.
Construction cost reform is pretty drastic policy, requiring the destruction of pretty powerful political forces – the system of political appointments, state legislators and mayors with a local rather than national-partisan identity, NIMBYs, politically-connected managers, the building trades, various equity consultants (such as many Los Angeles-area urbanists). They are not legally strong, and a governor with a modicum of courage could disempower them, but to be a moderate in the United States means to be extremely timid and technologically conservative. Matt himself understands that last point, and has pointed this out in connection with moderates who hold the balance of power in the Senate, like Joe Manchin and Susan Collins, but use it only to slightly shrink proposed changes and never to push a positive agenda of their own.
So yes, this is a construction cost crisis, but it’s not purely that. A lot of it is a broader crisis of political cowardice, in which non-leftist forces think government doesn’t work and then get elected and prove it (and leftists think real change comes from bottom-up action and the state is purely for sinecures, courtesy of the New Left). I warned in the spring that corona is not WW2 – the crisis is big enough to get people to close ranks behind leaders, but not to get them to change anything important. These states are rich; comfortable people are not going to agitate for the destruction of just about every local political power structure just to get better infrastructure.