Inspired by the publication this week of NYU scholar Alain Bertaud‘s critical new book Order without Design: How Markets Shape Cities (MIT press), Sandy Ikeda‘s pre-book development series Culture of Congestion over at Market Urbanism, and London YIMBY, here is a note on housing reform.
Classical liberals see the economic solution to housing as relatively simple: increase supply to better meet demand. By contrast, the political economy of housing is almost intractably complex. The reason for this is that there are endless externalities associated with new housing: access to light, picturesque landscape, open space and uncongested roads just for starters. These gripes and grievances are the bread and butter of local politics. Unlike consumer product markets, housing cannot be disentangled from these social, political and legal controversies. A successful market-based housing policy must establish institutions that not only encourage housing supply growth but navigate around these problems while doing so.
Policy reform proposals that deliberately favour increasing owner-occupied single-family homes, as tends to be the focus among market liberals in the UK (and to some extent in the US), are currently self-defeating. As justified as they were in the past to achieve a more market-friendly political settlement, they are now a barrier to achieving plentiful, affordable housing. This is because every new homeowner becomes an entrenched interest, a potential opponent to subsequent housing development in their area. They impose more political externalities than renters. I propose we cut the link between support for home ownership and housing supply policies. This would free up policymaking to focus on expanding provision by all available market-compatible means.
This should include greater encouragement of institutional landlords, especially commercial enterprises. Commercial landlords have more incentive and capability to expand supply on estates that they own, while long-term renters (unlike homeowners) have an interest in keeping rental costs low. The lack of private firms dedicated to supplying housing in England compared to much of the rest of the world is startling and yet often overlooked even by friends of free enterprise.
Yup, you read that correctly. Behold:
- An audacious proposal for a US–North Korean alliance Tim Shorrock, the Nation
- Le Corbusier’s Indian Dream “AG,” URBN Sense
- Lovers of Wisdom Jim Holt, New York Review of Books
- The curse of work Joe Moran, Times Literary Supplement
- What caused the Black Death and could it strike again? Wendy Orent, Aeon
- Which cities have people-watching street cafes? Tyler Cowen, Marginal Revolution
- Keenan’s view of the Far East Francis Sempa, Asian Review of Books
- Is neoliberalism dead? Scott Sumner, EconLog
I spent the last week and a half in Greece (mainly Athens and other historical sites in the Peloponnese) thanks to the Reason, Individualism and Freedom Institute, and explored ancient political philosophy in a modernly turbulent state. I’m writing this in Naples. Here are a few thoughts I had from the first couple days in Athens.
There is a strong antifa presence (at least judging from graffiti, small talk with some locals and the bios of Grecian Tinder girls). I can’t help but imagine the American antifa pales in comparison. Our black bloc — thrust into the spotlight in mostly superficial college campus debates — tends to be enthusiastic, whereas the antifa in Hellas, culturally sensitive to millennia of dictatorships, entrenched aristocracies, Ottoman annexation, great power puppeteering and a century of neighbouring fascist regimes, must be somber and steadfast. Our antifa crowd has so little targets to find Ben Shapiro a worthy protest, whereas Golden Dawn, the ultranationalist, Third Reich-aesthetics Metaxist party gets 7% in the Hellenic Parliament. Nothing here is spectacle. (Moreover, the extreme-right in Greece, according to our tour guide, has been known to worship and deify mainstream Christian figures as well as the ancient gods spawned of Uranus and Gaia. Umberto Eco’s immortal essay Ur-Fascism explained phenomena like this as the ‘syncretic’ element of fascist traditionalism.)
Moving past the fascists and antifa, in general Greece is left. The Communist Party of Greece, KKE, gets about 5% of the votes and displays a sickle and hammer. More telling still, plenty of the leftist graffiti is actually representing the KKE. Political parties tend to de-radicalize, or are supposed to in theory, and the fringe ideologues disavow the party for centrism or weakness (it’s funny to think of American socialists spray-painting the initials of the CPUSA). The graffiti stretches all the way to Lesvos, of Aristotle’s biology and Sappho’s poetry, and to Corinth of the cult of Aphrodite, but is most prominent in downtown Athens.
Athens has an anarcho-friendly district with a rich history called Εξάρχεια, Exarcheia. Antifascist tagging is complimented by antipolice, antistate, antiborders and LGBT designs, the Macedonian question is totally absent, and posters about political prisoners stack on each other like hotels on ruins. Our friends at KEFiM warned us about Exarcheia — it has a history of political/national xenophobia, and one member had been violently assaulted — but I had already visited on the first day. Aside from a recently blown-up car, it wasn’t too different from Berkeley — nice apartments and restaurants juxtaposed with street art and a punk crowd, drug dealing, metal bars on windows. Granted, this was in daylight and I saw only what was discoverable with Google maps. Still, I had the fading remains of a black eye and my usual clothing is streetwear, so maybe I wasn’t too out of place — even as an American and thus most hated representative of that target of so much antifascist graffiti, NATO.
Much of the larger politics of Greece were not easy to discover from our various tour guides. Just like the ancient myths of the country, they constantly contradict each other.
The Athens underground metro was incredibly clean and modern — infinitely more than in Atlanta, San Francisco, Los Angeles, etc. — while their roads are constipated and chaotic. Duh, the city itself is one of our most ancient settled, and so roads have proceeded in a particularly unorganized fashion. But it did cause me to consider the beauty that on a planet where our civilizations literally build on each other generation after generation — and, in an uncommon historical epoch where conquering is out of fashion — sometimes the only place to go is down. Humans have expanded our surface area in dimensions completely unfathomable to the diasporic colonizers from ancient Crete.
The syncretic chaos of the streets, though nauseating to the newcomer, lends itself to almost divine levels of flânerie, such that one can walk hours without reaching any particular destination and feel accomplished. Nothing much looks the same when Times Square melts into an ancient agora melts into a Byzantine church melts into the beach. Attica is wildly heterogeneous and beautiful; modernist adherents to classical Greek conceptions of precision-as-beauty should be humbled.
I should add also that my first impressions of Athens (and Catania) was how much it looked like something out of a videogame. The condition of 21st century man is that, upon visiting foreign cities for the first time, he will invariably compare them to Call of Duty maps.
On a few occasions, enough for me to notice but not enough for me to declare it a custom, my server (who sits me, takes my order and waits on me) gave me extra food on the side. This only happened at small restaurants that aren’t overly European and might be an orange juice, fruit bowl or something small and similar. Every time, of course, I left a larger tip. These actions put us in a sort of gamble. For the waiter to bring me something periphery, he might expect a grander gratuity. Then, when I notice the extra item, I have to assume that it’s not just a mistake — that he didn’t think I ordered something extra which will appear on my tab. He and I are both sort of gambling our luck. Of course, it’s not a real gamble — in every instance we were at least partially sociable prior and lose nothing substantial if it doesn’t work out. What is interesting is that we’ve removed ourselves just a little from the law — I am only legally obligated to pay for what I ordered; he is only legally obliged to bring me what I paid for. Still, without the legal backdrop, everyone leaves happy. Left-libertarians would like it.
(As everyone knows, the Greeks are very hospitable and friendly, and this is a testament to that. A counter-example: I went to a gay club for the first time in the rainbow district of Athens. I can’t speak enough of the tongue to talk to women anyway, and there is at least a chance that some guy will buy us drinks. Nobody buys us drinks. The only conclusions are that we’re not handsome enough or the Greeks are not as friendly. It has to be the latter.)
I should quickly add something about coffee. Where it not for the drought of drip coffee, I could easily stay in the Mediterranean forever. Alas, to literally order an “iced coffee” — kafe frappe — you are ordering a foamy concoction with Nescafé. To order a Greek coffee (known as a “Turkish coffee” before tensions in the 1960’s) means an espresso-type shot with grounds/mud at the bottom. But, the coffee culture is fantastic — the shops are all populated with middle-aged dudes playing cards, smoking rollies, and shooting the shit. I don’t think I need to describe the abominable state of American coffee culture. Entrenched in their mud, the Greeks resisted American caffeine imperialism. Starbucks tried and failed to conquer the coffee market: there were already too many formulas, and the Greeks insisted on smoking inside.