I am not knowledgeable enough to discuss the legal angle, so I’ll set that aside. I disagree on the right claimed from a moral standpoint. It’s dystopian to think that the rights exercised by individuals or individual cities are only delegated to them by higher powers. At best, a situation where local powers are overridden by others at the state level amounts to a tyranny of the majority. In my opinion, locality of power and decision making is important. Palo Alto is not the only city on this continent. People, and companies, can go elsewhere - including into the interior of the country outside of California.
> Palo Alto enormously benefits from economic growth caused, not primarily by its residents and policies, but by the residents and policies of other portions of the state of California.
Another way to look at it, is that residents of Palo Alto made a smart investment, or a lucky one - but that’s okay, and they’re allowed the spoils of that choice. Or maybe they don’t care about those economic benefits and economic change just happened to take place, around them.
> it doesn't feel any responsibility to aid in housing the many thousands of new workers that increased commerce requires.
Why do the residents have a responsibility to aid new workers? If those new workers don’t have a great situation with respect to cost of living in the Bay, they shouldn’t take those jobs. There are many open jobs across the country, in many different locations. If those other jobs don’t provide the same pay or other conditions - well, that’s just life. No one can be entitled to only have a specific job in a specific city.
> This is not a tenable situation long-term. Small municipalities in the Bay Area cannot internalize the benefits of economic growth while externalizing the costs indefinitely.
High prices discourage continued population growth. Companies looking to hire and expand can set up in communities that have room or that welcome growth. Workers will go there, home prices in the Bay will change, the economy will be more distributed, and things will rebalance accordingly.