This commentary is by Todd Howland of Wilder. A visiting professor at the Vermont Law and Graduate School, he is a human rights lawyer and economist.While my family have been Vermonters for generations, I have just recently moved to Vermont and started working here a few days ago. Thus, I listened to Gov. Scott’s inaugural address on Jan. 9 with great interest.To make sense of the governor’s “legalize housing” reference in his address, I utilize a human rights framing, which includes the right to housing, where Vermont needs to create a human rights economy to find market and non-market-based solutions to end the current housing crisis.The governor clearly identified the problem, stating: “We know mortgages and rent are unaffordable for many. This cost, and a shortage of units, drives people out of Vermont and prevents families and workers from moving here.” He explained the need for 3.5 times more new homes to be built. His call to “legalize housing” could be politically interpreted to mean that there are too many legal hurdles to building affordable housing. While signing a reform of Act 250, to overcome single-family housing zoning in 2023, the governor said: “I will continue to pursue commonsense modernizations to make sure all Vermonters can afford a safe, decent home.” While regulatory change is important, alone it has not solved the problem here or in other states. Our economy is not producing enough decent-paying jobs for everyone to afford good housing. READ MORE The problem is that Democrats and Republicans have believed for too long the market would magically fix all problems. Notably, the governor cites non-market solutions like the Vermont Tax Increment Financing program; tax increment financing is a public financing method that is used as a subsidy for community-improvement projects in many countries. He also cited the Vermont Housing Improvement Program, which provides grants and 0% interest loans up to $50,000 per unit to property owners to create affordable rental units. I have spent most of my professional career working abroad. Countries that followed the U.S. lead in allowing the market to resolve all issues have proven to have made good politics but bad outcomes for societies, as they all now face housing crises. The U.S. belief that it leads on everything is preventing us from borrowing from what works in other countries and local governments.It was notable for a speech where the governor made numerous mentions of the need for bipartisan efforts and prioritized housing, that he did not mention President Carter, whose state funeral also took place on the 9th, a few hours earlier.President Carter, an ardent supporter and builder of affordable housing, believed in all human rights for everyone, including those living in the U.S. The Covenant on Economic, Social and Cultural Rights, which includes the right to housing, has been ratified by over 90% of all countries (it was signed by President Carter, but never ratified in the US).It has a useful framing, as each country needs to maximize available resources (e.g., taxes) to invest effectively in these rights (by demonstrating measurable positive change in the realization of the right — not just spending). The right to housing means a government needs to ensure that its economy does not leave anyone behind. It does not mean we all get free housing or that housing needs to be government-owned. It is about the result. Each country can develop its own policies, and can use a smart mix of market and non-market solutions, as long as the right to housing is respected. Walter Mondale’s posthumous eulogy for President Carter stated: “Two decades ago, President Carter said he believed income inequality was the biggest global issue.” Income inequality was a problem when my father grew up in Belmont on a farm without electricity. Income equality has grown since then. He was the only person in his family to attend university, and after graduating from UVM he left Vermont for a job.READ MORE He moved to another “high-tax state” as Governor Scott calls them, Minnesota, but a state that has outperformed its “low-tax” neighbors for decades on the creation of decent-paying jobs. Creating decent-paying jobs is a complex process, while taxes are relevant, it is only a small part of the total equation.I moved to Vermont because of the efforts to take climate change seriously (e.g., Green Mountain Power is the first power company to become a Certified B Corporation as it sells zero-carbon electricity), and its efforts to create a green economy.A human rights economy is one that prioritizes respect for human rights, and only after all human rights are respected by everyone and for everyone, then maximizing return on investment or profit. We need to treat human rights as part of the rule of law, not as something that plays a secondary role to profit-taking.The housing crisis is a part of the economic crisis in the U.S. As the governor said, there is no silver bullet. The remedy needs to recognize that housing is a human right, that the market alone will not fix the crisis, and government has a critical role in making sure that the right to housing is a reality. Read the story on VTDigger here: Todd Howland: Interpreting Gov. Scott’s call to “legalize housing”.