Policies to Help Communities Recover: Economic Uncertainty
6 Pages Posted: 31 Jul 2020
Date Written: June 24, 2020
Communities and local governments across the country face a period of extreme uncertainty. Whether or not COVID-19 is quickly contained, changes in consumer demand, supply chain struc¬ture, business practices, and regulation will reshape some of the economic life that makes cities what they are. The prospect of rapid, unplanned change is daunting, and many of the potential changes are unwelcome, but cities can make the best of this evolving situation by providing flex¬ibility for residents and businesses to experiment, adjust, and find new patterns of specialization and trade that can be sustainable in the postcoronavirus world. To support the economy’s adjustment to a new, healthy equilibrium, we suggest several poli¬cies that promote flexibility in land use and permitting.
Two companion papers specifically address possible changes in housing needs and commuting patterns. This policy brief is more general and, unlike the two companion papers, assumes that some previously profitable economic arrangements will become, perhaps drastically, less common, and that others—some of them new and unforeseen—will gain prevalence.
Keywords: housing policy, commuting, rental market, housing supply, coronavirus, coronavirus pandemic, COVID-19, public health, economics, quarantine, economy, economic crisis
JEL Classification: H70, R28, R00, O18, I00, I18
Suggested Citation: Suggested Citation