Part 7/11:
One of the core issues, as highlighted by critics, is that many policymakers and city officials lack a fundamental understanding of basic economic principles like profitability and incentives. Their focus on virtue signaling and revenue collection—often justified by ideological commitments—has led to policies that unintentionally harm the housing market and economic vitality.
Prominent voices argue that the city’s approach is shortsighted. Instead of fostering an environment where developers can profit and build affordable units, these taxes scare developers away, especially in the commercial and multifamily sectors that are crucial for addressing Los Angeles' housing shortage.