We know what New Orleans Needs

In reference to NY Times December 11, 2009 editorial "What New Orleans Needs."
http://bit.ly/8pzTwt

How does the world run without Washington? Apparently rather poorly according to the NY Times editorial telling New Orleans what it needs to develop affordable housing.

Can you believe the local politicians want to use federal funds to clear abandoned buildings! Oh no!

It is complicated. People's decisions on what to spend their money on, (i.e. rent) is driven by personal considerations that we cannot comprehend on an individual basis or heaven forbid, on a group basis.

Rents in a competitive market place reflect supply and demand. High rents, mean high demand. This may be a temporary condition because the market place hasn't been attracted to building to meet the demand yet, or it could be structural, (i.e.government restraints on building which I understand there are).

I know nothing about the situation in New Orleans. But I will bet that the problem is political structure that prevents the market place from building.

Tell me I am wrong.

in reference to: Editorial - What New Orleans Needs - NYTimes.com (view on Google Sidewiki)