From the passage of Joe Biden’s subsidy-ladden infrastructure and climate legislation to calls from prominent liberals like Ezra Klein for a “supply-side progressivism,” Democrats appear to have rediscovered a long-standing tradition of using state subsidies to incentivize private enterprise to achieve social policy goals. This approach entails funneling public funds to business with the goal of unleashing private investment in ways thought to serve the public interest.

The idea dovetails with an increasingly popular line of thought about how to fix one of the biggest problems plaguing blue states — namely, a lack of affordable housing. The “YIMBY” (short for “Yes in my Backyard”) movement, for instance, argues for loosening zoning regulations on the grounds that increased housing supply of all kinds will have a trickle-down effect, bringing down housing prices overall.

Democratic lawmakers are increasingly embracing the YIMBY line. California state senator Scott Wiener (D-San Francisco), considered a likely successor to Nancy Pelosi’s congressional seat, has spearheaded several reforms that cast government regulations as the culprit blocking needed housing development. The targets of this legislation have included environmental review regulations, laws mandating wage floors for construction workers, lengthy permitting processes, and especially the ability of municipalities to reject housing developments or restrict neighborhoods to single-family housing. The goal is to “upzone” or remove the barriers to more housing development.