What does loosening zoning restriction shave to do with "planned economy"? One of the strongest proponents of this, the Strong Towns guy, is a libertarian.
Yes, problem is complex but also easy fixable in long term: abolish parking reqs & allow building dense buildings & force building nice sidewalk+trees+bike lane+ safety islands on every street renovation. This way there is no upfront cost to rebuild everything instantly, instead same public resources will be used(street renovation money is already allocated) and the town will become more walkable gradually
You just cited a chief complaint that people against a car dominated culture have about car culture as if they never thought of it, never thought of one of their own major arguments?
Pictures of miles long suburban corridors with no services or business along them.
Maybe.. people don't walk there.. because there's no _reason_ to be walking there.
If you want people to walk, give them a reason other than "I don't like cars."