Marie Howland, 19th Century Gender Equality Pioneer

Young girls ironing laundry

Howard H. Aiken, a pioneer in computer engineering, famously urged others to “[not] worry about people stealing [your] idea. If it’s original, you will have to ram it down their throats.”

This reminder is useful when considering the reasons that groundbreaking ideas often do not make it into mainstream culture or history textbooks. Marie Howland, a passionate advocate for women’s economic independence in the nineteenth century, is an apt exemplar of Aiken’s claim. A woman of revolutionary ideas, she is hardly a household name. Howland, a white working-class woman, was among the first of both her class and gender to publish a novel in America and to participate in the women’s rights movement by challenging fundamental social conventions that limited the influence of women to the household and domestic sphere. Like other authors such as Jane Austen, Howland was deeply troubled by the way social conventions served to reinforce women’s systemic economic dependence on men. This has hardly been resolved; “equal pay for equal work,” one of the cornerstones of Hillary Clinton’s current presidential campaign, is merely one example of the issues that remain to be addressed towards Howland’s goal of achieving economic equality among genders. What is most compelling about Howland, then, is how relevant her ideas for the economic equality of women continue to be today.

A concise statement of Howard’s philosophy is that she wished to see opportunities for women to achieve financial independence. This idea necessarily challenged traditional boundaries separating the domestic and public spheres. Whereas a man might have various opportunities for wage-earning work outside of the household, a woman’s work was typically constrained to the household and its value not so easily quantified. Early on, this distinction led Howland to embrace the writings of French intellectual Charles Fourier. She admired Fourier’s suggestion that women be empowered to select their work – primarily in a communal setting (phalanx) with other women – and be materially compensated. It is important to distinguish here that while many women in working-class families were, in fact, compensated for employment outside of the household, Howland recognized that this did not absolve them of traditional household duties. Women, in many cases, worked a “second shift” on the homefront, remaining trapped by this economic and social model. As Cliff Cobb states in his introduction to a special issue on Marie Howland in The American Journal of Economics and Sociology, “[T]he only way to let women out of [their domestic] prison[s] was to knock down the walls that have separated the oikos (household) from the polis (public arena), the domestic and the non-domestic spheres.”

 

Woman working at Texaco Refinery
Port Arthur refinery, The Texas Company via photopin (license)

 

The Fourierist model, which remains obscure relative to other alternatives to Capitalism such as Marxism, might best be characterized as a combination of the communal elements of Socialism, with a view of humanity as an evolving entity striving towards a state of universal harmony in accordance to God’s will. Fourier understood the Divine model for social evolution as requiring a move toward communal living, reducing the inefficiencies of individual households by consolidating and redistributing the work required by the community. Notably, domestic work such as cooking, cleaning, and childcare was included in this model. By normalizing domestic work within the community marketplace, Fourier’s plan for communal living also implies a redistribution of the power dynamics that have traditionally separated the genders, privileging white males above everyone else. It was Fourier’s hope that altering domestic work and power in this way would facilitate the sharing of power in other spheres.

Late in life, Howland resided in the Georgist community of Fairhope, Alabama, which was based on the ideas of American political economist Henry George, favoring land value taxation rather than taxation on improvements or property. These ideas, implemented both in the United States as well as abroad, have yielded enormous economic gains. Not surprisingly, Howland found these ideas compelling and even necessary for realizing a more egalitarian world.

 

Fairhope, Albama.
Fairhope, Albama. By Stratosphere (Own work), via Wikimedia Commons

 

To be clear, none of this demonstrates that the core of Howland’s vision for economic liberation of women could not be better adopted by our contemporary society. If Aiken’s words are to be believed, we might argue that Howland’s ideas continue to pose challenges so significant that they are resisted by mainstream culture. The virtues of Howland’s ideas lay principally within the uncomfortable questions they pose. It is interesting, for example, to consider the widespread negative perceptions that persist regarding “feminism” as a disruptive – rather than restorative – social influence. The myth of an America offering equal opportunity to all regardless of gender, race, and other minority identifications persists. Which groups stand to lose ground should continuing inequality be recognized, and what type of social and economic justice, as envisioned by Howland, ought to be pursued? The economic theory of great disparity as a necessary evil (social Darwinism) remains so deeply ingrained in our national narrative that it is often revered as unassailable, forestalling conversations that might otherwise pose promising alternatives but that have the potential to alter our current economic paradigms.

If there is anything we can learn from Howland’s ideas, it’s that just work relations cannot be achieved within the Capitalist system, in its current form, nor can they be achieved by simply redistributing property. To secure a just system for women, Howland argues that the caretaking duties that women are often burdened with also need to be redistributed.

-Elizabeth Smith

Cover Image: Ironing Day- vintage stereoscope card via photopin (license)

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Berkeley Poised to Address Affordable Housing Crisis With New “Landlord Tax”

Berkeley, California, has long been a bastion for artists, intellectuals, and their progressive ideals. It is home to UC Berkeley (3rd-ranked university in the world), which hatched the politically seminal Free Speech Movement, as well as Telegraph Avenue and People’s Park, epicenters of the counterculture movement of the later 60s and early 70s, and the first enactments of a number of progressive policy measures including a soda tax and the first handicapped-accessible sidewalks. Now, however, skyrocketing housing costs are threatening Berkeley’s inclusive character, as the rising cost of residential rental housing space forces more and more lower and middle-income families to leave.

In 2010, the average monthly rent for a new apartment in Berkeley was $1,975. Today, that number stands at $3,308, a staggering 60% increase in just 6 years. With Berkley’s median household income of $65,283, such staggering rents can easily consume two-thirds of a family’s gross income, leaving little money for other expenditures.

Housing costs in Berkeley are being inflated by forces affecting the entirety of the San Francisco Bay: a burgeoning population, an increase in the number of well paying jobs, and a lack of new housing construction chief among them. A recent survey revealed that 78% of Berkeley residents believe affordable housing is the number one issue the city should be tackling. Elected officials are starting to take action.

 

CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=63118
CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=63118

 

In early June, Berkeley City Council unanimously approved a November ballot measure to levy a 1.8 percent gross-receipts tax on landlord rents. The tax, if passed by voters, is expected to raise $5 million annually, which would then be spent on affordable housing projects. It’s a clever way of circumventing California’s Proposition 13 which, along with a long list of municipal revenue limitations, caps the amount that real estate (encompassing both land and buildings) can be taxed at 1% of market value.

Low taxation on real estate–or, more to the point, on land values–effectively encourages the purchase of land for the sole purpose of speculation. Low property (land value) taxes paired with high taxes on improvements (structures) discourages commercial or residential development of that land, as rising land values reap financial reward for property owners without their having to undertake the risk and trouble of adding any improvements. Often times this means there is little, if any, incentive for property owners to build the quality low-cost housing needed by growing communities. In turn, they benefit from the resulting artificial housing scarcity much more than active building ever would.

In response to these condition and their effects, Stephen Barton, Berkeley’s former Director of Housing, has become a major proponent of what is being dubbed the “landlord tax.” Barton, drawing from the ideas of Henry George, explains that landlords are not creating the value that is leading to skyrocketing rents. Land values are a social product, directly inflated by a growing population and its subsequent economic development, which, in the case of the Bay Area, has in turn been buoyed by the region’s diverse culture and ample public infrastructure.Proposition 13’s limiting effect on the land portion of property taxes has enabled landlords to privatize this socially-created value for their own personal profit.

 

Joe Mabel [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/)], via Wikimedia Commons
Joe Mabel [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/)], via Wikimedia Commons

At present, Proposition 13 allows landlords in Berkeley (and all across California) to capture the increasing land values. When a tenant leaves a unit, even if it is rent-controlled, a landlord has the opportunity to increase the rent as much as the market allows. As a result, landlords have increased overall rents by $100 million annually, an amount well beyond what constitutes a fair return on investment.  “This has been a massive income transfer from tenants to landlords,” Barton said. “It’s deeply hurtful to low-income people.” The result of this excessive transfer of income also serves to gentrify the poor right out of Berkeley.

The this new landlord tax is a distortion of land value taxation (LVT). LVT was originally proposed by American political economist Henry George, who recognized that land values are a social product (affected primarily by the size and productivity of the nearby community) and should be taxed so that their value can be returned to the community. The difference between LVT and the landlord’s tax arises when considering raw, vacant and underdeveloped land. LVT is a tax on land values, independent of improvements, that provides incentive for landowners and landlords to put all land to its best use. By comparison, the landlord tax depends on gross receipts, punishing those that increase tenancy and rewarding that hold their land idle, which is not a good way to encourage walkable and well-maintained communities with ample housing.

Taxes on land, in comparison to the ubiquitous tax on improvements we have in the United States, has been shown to actually increase the supply of both residential and commercial space by preventing the privatization of of socially-created land values by landlords. A sufficiently high LVT makes the ownership of land expensive, which then forces the landowner to develop the rental space needed to pay the higher land value tax. Conversely, the tax on improvements has the opposite effect, penalizing the construction of rental space by increasing the amount of one’s property taxes at pace with an increase in building.

 

"Trust Your Struggle" via photopin (license)
“Trust Your Struggle” via photopin (license)

 

The Berkeley Rental Housing Coalition, a landlord’s organization, says the proposed tax is too burdensome. They plan to put a similar, albeit smaller, tax proposal on the November ballot. Charlotte Rosen of East Bay Housing Organizations fears that two landlord tax measures on the ballot could split the vote and cause both measures to fail, which would be the landlords’ first preference. If the landlord tax measure proposed by the Berkeley City Council passes, cities across the Bay Area will be watching closely to see whether the new policy does actually stem the housing crisis.

Interested in helping Berkeley City Council pass this measure? If you are local, contact the Council and see how you can help get the word out! Another way to help would be to modify Proposition 13 to avoid loophole abuse by helping organizations like Make It Far and Daughters for Charity.

The best way, though, to help everyone would be to support broad implementation of Land Value Taxation, which may well require altering or even repealing Proposition 13. Everything else is either a band-aid or a half-measure.

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Housing Advocates in New Orleans Take on Short-Term Rentals

Eleven years after the federal levee failures following Hurricane Katrina ravaged New Orleans, the city’s tourism industry has rebounded to pre-storm levels. In 2014, 9.52 million people visited New Orleans and spent a total of $6.81 billion, the highest recorded tourism spending in the city’s history. But while the revenue from increasing tourism has been a boon to the city’s economy, the market for affordable housing has been strained as property owners and investors increasingly convert residential properties into short-term rentals.

Short-term rentals are furnished homes rented to tourists as an alternative to hotels. Although they have existed for some time, websites like Airbnb and VRBO, which make it easy for homeowners to connect with those seeking accommodations, have led to a rapid proliferation of short-term rental units over housing for the city’s workers. While they benefit property owners with a source of additional revenue and are often less expensive for tourists than a hotel, these short-term rentals are decried for straining the housing market in cities with limited housing stock.

This trend suggests that homeowners, despite the city’s economic resurgence, are finding it necessary to generate additional income. This may result partially from a lack of economic opportunity in other sectors, forcing property owners to venture into the short-term rental market. New Orleans renters have also suffered displacement as investors and landlords, seeing bigger dollar signs in reach, convert entire properties to short-term rentals, often evicting long-term tenants.

 

New Orleans my love via photopin (license)
New Orleans my love via photopin (license)

 

Housing advocates across the country, particularly in San Francisco and New York City, have rallied against this practice, citing increasing rents and a trend of landlords removing properties from the residential rental market to use them solely as short-term rentals. In New Orleans in particular, where rents have increased 20% over the past 14 months, shrinking housing inventory is squeezing out the lower-income renters and prospective homeowners who are already struggling to find affordable housing.

Such short-term rentals, though prevalent, are illegal in New Orleans. Local ordinances state that an entire home may not be rented for a period of less than 30 days, and citations can result in financial penalties in the amount of $500 or more. However, the city lacks the resources and personnel to enforce these laws. Of an estimated 2,000 to 4,000 illegal short-term rentals, only 72 properties received citations in 2015.

New Orleans housing advocates, concerned about the effect of these rentals on housing stock and rising rents, have issued recommendations for how the city should manage these properties. They recommend that legal short-term rentals, defined as the rental of a room within a home versus the entire home, be subject to taxes, the revenue from which would be used to construct low-income housing. This would be equivalent to introducing a new sale/income tax hybrid for homeowners seeking to create the value or income that some need to make ends meet. For illegal short-term rentals, housing advocates are requesting assistance from sites such as Airbnb in identifying them and recommend that fines be increased from the current $500.

 

Hard Rock on Bourbon Street via photopin (license) The tourism industry in New Orleans is driven by the culture created by the permenant residents.
Hard Rock on Bourbon Street via photopin (license) The tourism industry in New Orleans is driven by the culture created by the permanent residents.

 

With rents rapidly inflating, New Orleans must take immediate and drastic action to ensure that housing remains affordable for its citizens. The proliferation of short-term rentals–and its negative effects–stems from the rising popularity of New Orleans as a tourist destination, the lack of alternative income-generating opportunities, and the lack of any incentive system for landowners to build the necessary structures to increase in the city’s housing capacity.

The current rise in land values, a socially-created product of the city’s diverse population, manifests as increasing rent, which is a major draw for landlords. This means that this increased value, created by the community, is being captured by landlords rather than the community itself.

The government must enact policies that re-invest the rising value of land (created by city’s permanent residents) back into the city for the people. The best approach would be to implement a sufficiently high land value tax (LVT) as originally proposed by American political economist Henry George. George recognized that land obtains its value from the government granting legal privilege to exclude others from a portion of our common inheritance, the Earth. It is thus necessary for those benefitting from this exclusive use to compensate those they exclude.

 

Street musicians in New Orleans
Dancing in the streets via photopin (license) Local street musicians are a major draw for tourists in New Orleans.

 

In comparison with the ubiquitous property tax (which includes a tax on buildings) common in the United States, LVT has been shown to actually lower speculation of both residential and commercial space by preventing the privatization of socially-created land values by landlords. A sufficiently high LVT makes the ownership of underdeveloped land expensive, which then makes it necessary for landowners to develop rental space to generate revenue to cover the higher land value tax–especially when the land is most valuable, as in any city. By contrast, the portion of the traditional property tax which falls on improvements has the opposite effect, penalizing construction of residential and commercial space by increasing the amount of one’s property taxes via the higher tax on improvements.
Without the developmental incentives of land value taxation, the success of New Orleans’ expanding tourism industry will continue crowding its underdeveloped housing market. The cruelest aspect of this is that travel and tourism workers, who are the backbone of the entire industry and often musicians and artists, often find themselves priced out of their own neighborhoods as the tourism industry that depends on their labor booms. Efforts to enhance the affordable housing supply, therefore, are essential to maintaining the stock of service workers, artists, and musicians who entice tourists to love, and go spend their money in, New Orleans.

 

Jim Fairchild of New Orleans Steamcog Orchestra
Photo by Michelle Gomez. Jim Fairchild of New Orleans Steamcog Orchestra
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Rent Subsidies Fail to Help Homeless in Los Angeles

Laura Luevano, a homeless woman struggling with severe diabetes and arthritis, failed to find an apartment in Los Angeles after searching for several months–despite holding a federally subsidized rental voucher. She is one of more than 2,000 people in Los Angeles who remain homeless despite holding these rental vouchers. Her story represents one of many that demand a fair and just solution.

In Los Angeles, a city known for its pristine beaches and Hollywood glamour, 35,000 people are without homes, and the situation is not improving. Just last year, the  homeless population increased by 5.7%, which has been deemed a crisis by Peter Lynn, the executive director of the Los Angeles Homeless Services Authority. City and state officials are hoping that rent vouchers will help abate this crisis, but that measure so far has shown poor results.

Rent vouchers are, in the eyes of officials, a quick and easy solution to the increasing homelessness problem. The voucher, subsidized by the federal government, can be used to pay rent to a landlord. But quick fixes often fail to provide long-term solutions, and the rent voucher approach has been no exception.

 

Homeless man and his dog sleeping via photopin (license)
Homeless man and his dog sleeping via photopin (license)

 

While vouchers increase the capability of the poor to access housing, they provide minimal incentive for landlords to increase the residential housing supply. Thinking in terms of supply and demand, vouchers serve to increase demand, but a lack of increase in supply to meet that demand ultimately defeats the program’s purpose. People tend to attribute the lack of supply to zoning and rent control–and indeed these issues are a part of it. However, the most overlooked factor is that the supply of land is fixed, and thus the owners can make an easier buck just sitting on undeveloped property and waiting for it to rise in value.

As a result of these simple market dynamics, recipients of vouchers are facing a harsh reality – the Los Angeles rental market is crowded and extremely competitive. LA County currently has very little housing inventory available for immediate rental – an incredibly low 2.7% rental vacancy rate. At a vacancy rate below 5%, the power dynamic between landlords and renters shifts dramatically towards landlords. Landlords can afford to be selective about tenants, choosing those that are least likely to fail to pay their rent. Often, the tenants that lose out are veterans and minorities.

These landlords have been reluctant to take on the homeless as tenants, citing concerns that they will be troublesome tenants and will fail to pay rent. But the County is taking action to erode these barriers by providing financial incentives to landlords. Through the voucher program, the city guarantees first and last months’ rent, as well as a security deposit, to landlords. Santa Monica County has gone a step further and gives landlords a $5,000 bonus for accepting rent vouchers.

In general, subsidies such as guarantees and bonuses have much the same effect on housing supply as vouchers. Subsidies of all kinds spur demand without any significant increase in supply, resulting in even higher rents for everyone. This goes to benefit landlords while hurting renters.

 

FOR RENT - Central Avenue via photopin (license)
FOR RENT – Central Avenue via photopin (license)

 

The city is educating landlords to reduce stigma and make the benefits of accepting vouchers clear. Vouchers are guaranteed rent, and voucher tenants have substantial support from the city in the form of case managers and tenant mediation, helpful in the case that a disagreement arises. The city also hopes that appealing to landlords’ sense of civic duty will increase their willingness to accept vouchers. Convincing hesitant landlords, however, is just one piece of the homelessness puzzle.The best additional measure would be one that encourages building more housing units.

Rent vouchers cannot be applied to 1- and 2-bedroom apartments that rent for greater than $1,150 and $1,500, respectively. With housing costs in Los Angeles soaring, and new rentals averaging $2,094 per month, federal vouchers cannot be applied to a large swath of available housing. Some counties have eased restrictions on these caps but have still not seen an increase in the number of voucher recipients renting apartments. This further validates the notion that this is a supply problem that calls for incentives to build the necessary units.

The voucher program is, in addition, actually squeezing low-income families that do not qualify for vouchers, creating a problem where there previously wasn’t one. When a homeless person receives a voucher, they are competing for the same rentals as low-income families, says Santa Monica housing administrator Jim Kemper. So while the program has had some success in taking homeless people off the streets, it is often at the expense of the working poor, making a bad situation even worse. Legal analysts have long criticized the City and State for focusing on voucher programs instead of building new units at the rate necessary to decrease rents. Ultimately, for the voucher program to succeed, Los Angeles must enact policies to ease its housing shortage.

 

Haley Pk 01 via photopin (license)
Haley Pk 01 via photopin (license)

 

To address the housing crisis, Los Angeles should consider implementing a land value tax (LVT) to replace its current, traditional model of limited property taxation, which may well require changing California’s constitution via voter initiative. In the late 19th century, political economist Henry George observed that a tax on property improvements reduces a landowner’s incentive to build, as improving the value of his or her property would increase the amount of taxes owed. Henry George hypothesized that, by eliminating the tax on improvements and implementing a relatively high LVT–which depends only on location value and surface area–landowners would be incentivized to increase residential and commercial space in order to create the necessary revenue to pay the LVT while generating desired return on investment.

Despite the proven success of the LVT in several countries around the world, Los Angeles cannot, at present, implement such a change. The California constitutional change known as Proposition 13 makes it exceedingly difficult to enact any measure of change to either land or building value taxation. Enabling such changes would require either changing or circumventing Proposition 13’s limitations.

At present, the human cost of inaction is quite severe. While a reaching an effective long-term solution requires bold measures, the humanity in us demands that we commit to positive change for all.

 

Cover image: Renting Property via photopin (license)

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The Simple Two-Part Solution to Poverty: Universal Basic Income and LVT

Imagine a society in which each citizen is guaranteed a minimum monthly income. People do not work to survive; they instead work to contribute to their country, supplement their income, and enrich their minds and bodies. Poverty rates have plummeted, and socioeconomic divides across an entire populace have shrunk. It may sound like a socialist utopia, but a number of countries are considering the idea of a Universal Basic Income (UBI), with some poised to implement it in 2016.

UBI has existed as a concept for hundreds of years. The idea was first posited by Johannes Ludovicus Vives in the 14th century and evolved via the work of Enlightenment figures like Thomas Paine and then,  in the 19th and 20th centuries, by Western economists and politicians . The idea even surfaced in the 1972 United States presidential campaign in the form of a negative income tax, with both candidates expressing some form of support.

The concept of a UBI has found support across the political spectrum. The Cato Institute, an American Libertarian think tank, has proposed that a UBI could be the better way for governments to redistribute income versus complex entitlement programs. Andy Stern, former president of one of the largest unions in America, the Service Employees International Union, believes a UBI is an effective way to target poverty at its core – a lack of income.

 

Child Living in Smokey Mountain Dump, Manila Philippines via photopin (license)
Child Living in Smokey Mountain Dump, Manila Philippines via photopin (license)

 

Centuries of hypothesizing notwithstanding, there have been few concerted efforts to implement a UBI until now. Y Combinator, a Silicon Valley-based company that provides seed money to startup companies, will be giving 100 families in Oakland between $1,000 and $2,000 per month for up to one year. Researchers will measure “happiness, well-being, financial health, as well as how people spend their time.” Finland is currently drafting a proposal for a UBI that would give each citizen 800 euros per month, and the Labour Party in the United Kingdom is considering backing a similar initiative.

Some economists warn that a UBI would be ineffective if not paired with other policy changes. A potential downfall of UBI is that the greater income of citizens would be captured by landlords via rising rents. Therefore, efforts must be taken to ensure that rents do not absorb government-supplemented income.

 

bbb low-cost housing, tegnestuen vandkunsten via photopin (license)
bbb low-cost housing, tegnestuen vandkunsten via photopin (license)

 

The addition of a Land Value Tax (LVT) to funding the UBI would limit, if not eliminate, the amount of income absorbed by rents while providing the necessary revenue stream to support it. Martin Farley, author of the “Transformation Deal,” has calculated that this approach would create a revenue stream to support at least a moderate UBI. Furthermore, since the burden of an LVT is on landlords, excessive rents captured by them would be recouped by the LVT and re-injected into the UBI program. In addition, LVT has been shown to promote the best use of land, generating more lower-cost yet high-quality residential and commercial space, a further benefit of UBI. It has been argued by many that the dual combination of LVT and UBI would work extremely well together to resolve a number inequities in any economy.

Economists from across the political spectrum will be watching Y Combinator, Finland, and other test programs closely as they experiment with a UBI. Success could mean an entirely new approach to the welfare state. Most important will be whether and how socioeconomic conditions change. And from those changes, new understandings may well arise to support ideas such as Land Value Taxation. For now, the world is watching.

Cover image: Money! via photopin (license)

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How Cities Breed Poverty

Richard Florida’s The Rise of the Creative Class posited that the clustering of knowledge-based, or “creative” occupations in cities and metropolitan areas drives urban economic growth. Florida now says, though, that such clustering also “generates distinct winners and losers both across and within cities and metros.” This is the central takeaway of the recently published study that Florida conducted in collaboration with Roger Martin, Melissa Pogue, and Charlotta Mellander, his colleagues at the Martin Prosperity Institute.

Florida’s work distinguishes between knowledge-based occupations in science, technology, and design and “routine” occupations in the manufacturing and the service industries. This most-recent study combines that approach with the work of Michael Porter, author of the landmark work The Competitive Advantage of Nations, published 25 years ago. Porter’s work, which looked at the role of industrial clustering in economic development, distinguishes between locally-oriented industries and traded industries—those that export goods beyond their immediate geographical areas. Florida and his colleagues at MPI have synthesized these two approaches to generate four occupational-industrial categories–creative-in-traded, creative-in-local, routine-in-traded, and routine-in-local. By analyzing data across 260 metropolitan areas comprising three quarters of the U.S. population, they have shed light on the role these four types play in innovation, economic growth, and inequality.

Proud, Distorted, Dream Job via photopin (license)
Proud, Distorted, Dream Job via photopin (license)

 

What They Found

There is a clear connection between traded and creative industries. 45 percent of those working in the traded industries are in creative occupations, compared with 36 percent in local industries. “Not surprising,” says Florida, “as traded industries compete on innovation and creativity.” These creative-in-traded jobs are distributed very unevenly around the country, with high concentrations, or geographical spikes, in a few cities, with the highest concentrations on the East and West Coasts. Creative-in-traded employment is a key driver of both innovation and economic growth and has the most positive association with higher wages. Of the four categories, creative-in-traded occupations have the highest wages by far, with average wages 31% higher than than the next highest category, creative-in-local, and 182% higher than the bottom category, routine-in-local—which makes up 45% of all workers. Both routine-in-local and routine-in-traded occupations fall below average wages, and the wage gap between creative and routine workers has grown over time.

What troubles Florida and his colleagues is the strong link between a concentration of creative-in-traded employment and economic disparity. The higher a metro region’s share of overall creative-in-traded jobs, the greater the income inequality. While all four categories see higher wages on average in metros with a higher proportion of creative-in-traded occupations, routine occupations do not see wage increases high enough to make up for the higher housing costs driven by a city’s desirability among those in higher-paying creative occupations. As a result, those in routine occupations, especially routine-in-local, are pushed to less advantaged metros with fewer high-paying jobs, creating a vicious cycle in which the disadvantaged sink lower and lower into poverty.

Tightly Packed Moving Truck
All my worldly possessions… via photopin (license)

 

What can be done?

The most difficult challenge, according to Florida, is that there are simply not enough creative jobs to go around. The proportion of creative jobs is increasing, but only very slowly—at about 1.4 percent per year. The solution, says Florida, is the conversion of routine occupations to creative occupations. He calls on business and industry to lead this transformation “by increasing the creative content of what is currently routine work,” and says that there is much to be gained in doing so in terms of productivity, customer service, and quality. Those cities that are able to convert more of their workforce from routine to creative occupations, he says, will be more competitive.

The economist Henry George noted this puzzling phenomenon over a hundred years ago. He asked why it was that as production and density increases so, too, does poverty. You would think that as society is able to produce more wealth in cities there would be more wealth to go around. However, it is precisely because certain people earn more that landlords are able to charge more rent.

 

A traditionally working-class neighborhood
The calm before the storm via photopin (license)

 

Unlike creative ventures, which require innovation and risk-taking, owning a vacant lot in the middle of a city requires relatively no effort or risk, as land values in these areas are continuously going up in value. If an urban property owner waits long enough, they can realize an enormous return without lifting a finger. The creative industries popping up around their rental properties will enable the slumlord to charge much higher rents. This slumlord needs neither assume the financial risk of building a new structure to house more of the new creative industry workers nor continue to house the routine workers. Rather, the slumlord will often just charge increasingly exorbitant rents to the routine workers, effectively forcing them out, and then house the creative workers in the same conditions for higher rents. The creatives are willing to pay these rents due to the desireable location and the short supply of rental units. Supply is suppressed because other landlords are also complacent and prefer to avoid the risk of developing their land to its highest and best use. Some will just knock down the buildings altogether to lower their property tax bills.

If, however, landlords were taxed on the basis of the value of their land, they would be incentivized to provide more housing units in order to pay the tax and make a profit. People would still move around based on the demand for particular locations, but there would be more housing for everyone. Thus, all things being equal, rent would be lower overall. What we think of as the peripheral areas of the cities, where the routine workers can afford the rent, would likely be twice as close to the city center as the areas they can currently afford to live in. We would not need other taxes if all or most revenue was coming from land. If we scrapped all of the taxes on routine workers’ wages, food, transportation, etc., these things would become more affordable, too, dramatically increasing creative employment and reducing poverty in cities. To see what that would look like, you can read our article Visualizing Earth Sharing.

 

Cover Image: gentrification, void places via photopin (license)

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McDonald’s Violates EU Anti-trust Laws

McDonalds Dominates a City Block

Consumer groups in Italy have banded together to file an anti-trust complaint against McDonald’s with the EU’s executive commission. The complaint alleges that McDonald’s has used its current strength in the market to gouge franchisees and, ultimately, consumers. The fast food giant is reportedly charging rents to franchisees that are ten times normal market rates. Additionally, they set 20-year franchise contracts with non-compete clauses that all but force the franchisees to stay with the brand.

The coalition claims that these practices violate EU anti-trust rules. According to a December 8 statement by the EC regarding an anti-trust complaint against Qualcomm, “Under EU anti-trust rules, dominant companies have a responsibility not to abuse their powerful market position by restricting competition.”

These monopolistic business practices are nothing new. Common consensus holds that McDonald’s financial success stems not from its food service business but rather land speculation. The corporation’s founder, Ray Kroc, once said, “Ladies and gentlemen, I’m not in the hamburger business. My business is real estate.” 

McDonalds in a Prime Location
Posh McDonald’s? via photopin (license)

Through its vast real estate fortune, McDonald’s has been able to leverage its formidable power. They can literally crowd out competitors from the physical landscape via their ownership and wasteful use of prime locations. More on that later.

Because of both the high rents it charges its franchisees and the restrictive contract terms, says the EC complaint, franchisees are forced to charge consumers inflated prices. In Bologna, 97% of menu items at McDonald’s franchise stores are priced higher than at corporate-owned ones. This figure is 68% in Rome and 71% in Paris. As for how much higher the prices are, the complaint cites the price of a small order of fries as 64% higher in Paris, 72% more in Marseille, and 25% more in Lyon.

In a joint statement, the groups said, “We urge the Commission to examine McDonald’s franchising system in detail, and take all appropriate action to ensure that the unfair burdens on the company’s franchisees end, and can no longer harm consumers.”

In response to the allegations, McDonald’s claims that the arrangements have worked well for both parties for many years and that they are transparent when it comes to the costs that are associated with being a franchisee, including the investment for equipment, signage, seating, décor, and rent as well as royalties for using the brand.

McDonald's workers on strike
Fight for 15 Los Angeles via photopin (license)

The complaint has drawn support from the Service Employees International Union, which has over 2 million members in Canada and the United States and is currently backing a campaign for raising the US federal minimum wage to $15 per hour. Scott Courtney, the organizing director for the SEUI, says McDonald’s abuse of its powerful position in the market hurts consumers and franchisees as well as workers. Several American fast food workers travelled to Brussels for the dual purposes of putting pressure on the European Commission to investigate the anti-trust complaint and to publicize their movement for increased wages for US fast food workers.

Currently, the European Commission is investigating McDonald’s tax arrangements in Luxembourg. The commission also believes that the US-based company may have avoided paying taxes in both the US and Europe on royalty profits from franchises in Russia and Europe.

The most expedient remedy for making sure that McDonald’s pays its fair share of taxes is to tax the value of its land holdings. This would make it very hard for McDonald’s to avoid the tax. If the company’s income is taxed, they can simply hide it in offshore accounts. Taxing the value of the land, however, would hit McDonald’s where it hurts and force them to give up some of their giant parking lots to accommodate competitors. These competitors would offer better deals for franchisees, employees, and consumers alike.

Cover Image: McDonald’s outlet at night via photopin (license)

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On National Sovereignty

by Lindy Davies

It’s become a convention, on the news, to refer to the Jihadist force that’s been gaining ground in Iraq and Syria as the “so-called” Islamic State. This seems to be a requirement. Sure, they call themselves a state — but they’re not! States are sovereign. They have governments, and ambassadors and such; they have seats in the UN General Assembly — like Syria, for example.

What is it, really, that constitutes a sovereign nation?

To begin with, it has to do with authority and control; we think of it as “where the buck stops.” It may be comforting to think of this as an absolute thing (i.e., Israel absolutely has it; the Palestinians absolutely don’t). But it is not all-or-nothing, of course; there are degrees. The “national sovereignty” of a place like “The Republic of South Vietnam” (or post-Dubya Iraq) is an evanescent thing, crafted on the fly to suit the interests of a larger power. Nevertheless, international diplomacy rests, however shakily, on the concept of national sovereignty. So far in human history, is nations that make and enforce laws. International law is an ad hoc matter. It is enacted by means of treaties, and only enforced at the national level, if nations choose to do so. (Has the International Criminal Court ever compelled the United States to do anything?)

Nations have various degrees of power, and various degrees, alas, of legitimacy. If the nation is not powerful enough, it may fall to conquest by external powers. But what if it is not legitimate enough? The (so-called!) Islamic State’s legitimacy is bestowed by Allah — the same Deity that confers legitimacy, via the Queen, to land tenure in Great Britain. (It has to be the same Deity: both faiths believe there is only one.) The classical Chinese concept of national legitimacy was called “The Mandate of Heaven.” It was thought possible for a ruling dynasty to lose this, become illegitimate, and become deposed. If a nation is not legitimate enough, therefore, it may succumb to internal revolutionary forces.

Eventually, Divine bestowal of sovereign power came to be vested in hereditary monarchs. In the minds of the Enlightenment philosophers, however, sovereignty came to rest in the incontestable, and infallible, will of the people. Thomas Jefferson, for example, wrote that governments are instituted to secure the people’s inalienable rights, and that their powers — if they are just — are derived from the consent of the governed.

This raises questions. Who are “the governed”? How is their consent ascertained? How, and where, and in what ways are they to be “governed” — presumably through the exercise of the sovereign powers of a “government” which the people have chosen? According to Jefferson, a governments just powers are derived from the consent of the governed — and it wields those powers through the process of creating and enforcing laws. Does this mean that if a majority of a nation’s citizens decide, through some representative process, that slavery is OK, then slavery is OK? Well, it’s legal, anyway; fee-simple private ownership of human beings was legal in the United States for 75 years.

verb
“Nation is a verb.”

Furthermore, the idea of government cannot be separated from the question of jurisdiction. Over what area does sovereign control extend? There is no global government. Our concept of sovereignty is inextricably bound up with the idea of nationhood. Now, sometimes we might speak of a “nation” in spiritual or cultural terms — a holy covenant? a community brought together by its victimhood? a romantic generational consciousness, such as the “Woodstock Nation”? But, in stark political terms, such notions are frivolous. In the “real world,” nationhood is a matter of jurisdiction over a defined portion of the planet: a territory — a piece of land.

Job #1 for any nation is the administration of its territory: its boundaries and their defense; the duties and prerogatives of states, municipalities and other lesser jurisdictions; and — most important — what people can do with that territory: what rights they have to its possession and use. This has obvious economic implications, because all economic activity must use land in some way. It is incumbent upon a sovereign nation to set rules concerning how people use the land: to make stuff, to live on, and to dump their garbage in.

Fine, OK — all of this sounds so commonplace as to hardly be worth mentioning. But, when we start to think about how these issues play out, we find some astounding breaches of logic.

Many smart people have told us that international trade agreements, such as the Trans-Pacific Partnership, or TPP, dangerously erode national sovereignty. Democratic societies have repeatedly chosen to implement regulations deemed necessary to protect health, safety and the environment. Pacts like the TPP seem to be taking these powers away from governments.  I wonder how many citizens in struggling, export-dependent poor countries have any inkling what prerogatives their “sovereign governments” have given away in order to stave off trade sanctions.

But it’s not just the poor countries that are “yielding up their sovereignty” to multinational corporations — oh, no! Lots of people in the Great and Powerful USA are exercised about the increasing ease with which corporations reconfigure their profits into other jurisdictions to avoid paying “their fair share” of US taxes. Have the governed given their consent to that? Perhaps not, but the Emperor, in any case, has made it legal.

If Job #1 of a nation is to administer its territory, what can we say of a country that allows private investors to hold hundreds of thousands of hectares of that territory entirely idle, while its people have no place to make a living? Hasn’t that nation’s sovereignty been seriously degraded?

Furthermore, if a corporation is making “obscene” levels of profit in the United States and then paperworking them into another country to avoid taxes, well — did it not need land, locations and natural resources, to undertake the activities that created those profits? Did it fully compensate the community for the privilege of using that land?

Questions like these have a way of making one’s head swim. They seem to sudden, too sweeping. One is tempted to back-track to see whether some key factor has been left out. That impulse is both understandable and necessary — because in today’s discussions of economic policy a key factor is left out.

So let’s back-track. We’ve said that the most vital task of a nation is the administration of its territory. It defends against invasion, creates and enforces laws, and provides all kinds of infrastructure, both civil and physical. To the extent that nations do these things effectively, they become pleasant and prosperous places to live and do business. And to the extent that they become pleasant and prosperous places, the land in them — most of which is held in fee simple by private interests — increases in value.

land

Any nation that allows fee-simple ownership of land has already — long since — yielded up its sovereignty to private interests. These recent “sovereign giveaways” are just minor embellishments. We can close the barn door if we like, but the horse is long gone.

One of the many things this means is that, while the TPP will exacerbate a number of problems, the solution to those problems is not to be found in protectionism. “Local self-sufficiency” will only make the local landlords a bit less rich.

There was a West African nation that took a series of effective steps to assert its own rightful sovereignty — have you heard of it? It began with a military coup — nothing very noteworthy in that; there are lots of military coups — but this one set out to implement a novel program of reform. The country defaulted on its foreign debt. It proceeded to abolish all income taxes, VATs and tariffs, and to collect the value of land for its public revenue. And what happened? It no longer needed exports, or foreign loans, because its domestic markets were strong, its employment full. The most serious policy problem it had to deal with was the large numbers of people who wanted to immigrate. This country’s name is Alodia — but, alas, it is fictional. So far.

 

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Marie Howland, 19th Century Gender Equality Pioneer

Howard H Aiken, a pioneer in computer engineering, has famously urged others to “[not] worry about people stealing [your] idea. If it’s original, you will have to ram it down their throats.”

Such reminders are especially useful when considering the various reasons that groundbreaking ideas don’t always achieve notoriety in history textbooks or mainstream culture. Marie Howland, a passionate advocate of women’s economic independence in the nineteenth century, is an apt exemplar of Aiken’s claim, for although she was a woman of revolutionary ideas, she is hardly a household name. As a white working-class woman, Howland was among the first of her class and gender to publish a novel in America and to participate in the women’s rights movement, challenging fundamental social conventions that limited the influence of women to domestic sphere. In alignment with authors like Jane Austen, Howland was deeply troubled by the way social conventions served to reinforce the systemic economic dependence of women on men. This has hardly been resolved: “equal pay for equal work,” one of the cornerstones of Hillary Clinton’s current presidential campaign, is merely one example of the work that remains to be done towards Howland’s goal of achieving economic equality among genders. What is most compelling about Howland, then, is how relevant her ideas for the economic equality of women continue to be today.

A concise summation of Howard’s worldview would be to say that she wished to see opportunities for women to achieve financial independence; this idea, however, necessarily challenged traditional boundaries separating the domestic and public spheres. Whereas a man might have many opportunities for different kinds of paid work outside of the household, a woman’s work was restrained to the household, where economic value was not so easily quantified. It was this distinction that, early on, led Howland to embrace the writings of French intellectual Charles Fourier. She admired Fourier’s idea that women ought to be empowered to select their work – primarily in a communal setting (phalanx) with other women – and be materially compensated. It is important to distinguish here that while many women in working-class families were, in fact, compensated for employment outside of the household, Howland recognized that this did not absolve them of traditional household duties; women, in many cases, worked a “second shift” on the home front and remained relatively imprisoned by this economic and social model. As Cliff Cobb states in his introduction to a special issue on Marie Howland in The American Journal of Economics and Sociology, “The only way to let women out of [their domestic] prison[s] was to knock down the walls that have separated the oikos (household) from the polis (public arena), the domestic and the non-domestic spheres” (74.5, 859).

 

Woman @orking at Texaco Refinery
Port Arthur refinery, The Texas Company via photopin (license)

 

The Fourierist model remains relatively obscure when compared to other alternatives to capitalism, such as Marxism, and might best be characterized as the combination of the communal elements of socialism with a view of humanity as an evolving subject striving towards a state of universal harmony in accordance to God’s will. Fourier believed that the divine model for social evolution required a move toward communal living, reducing the inefficiencies of individual households by consolidating and redistributing the work required by the community. Notably, domestic work such as cooking, cleaning, and childcare was included in this model. By normalizing domestic work within the community marketplace, Fourier’s plan for community living also implies a redistribution of power that has traditionally separated the genders, privileging white males above everyone else. It was Fourier’s hope that, by altering domestic work and power in this way, it would facilitate the sharing of power in other spheres.

Late in life, Howland would reside in the Georgist community of Fairhope, Alabama, which was founded on the ideas of American political economist Henry George. These ideas, implemented both in the United States as well as abroad, have yielded enormous economic opportunities. Not surprisingly, Howland found these ideas compelling and even necessary for realizing a more egalitarian world.

 

Fairhope, Albama.
Fairhope, Albama. By Stratosphere (Own work) [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC BY-SA 4.0-3.0-2.5-2.0-1.0 (http://creativecommons.org/licenses/by-sa/4.0-3.0-2.5-2.0-1.0)], via Wikimedia Commons

To be clear, none of this demonstrates that the core of Howland’s vision regarding the economic liberation of women cannot be better adopted by our contemporary society. If Aiken’s words are to be believed, we might argue that Howland’s ideas continue to pose challenges so significant that they are resisted by mainstream culture. The virtues of Howland’s ideas lay principally within the uncomfortable questions they pose. It is interesting, for example, to consider the widespread negative perceptions that persist regarding “feminism” as a disruptive – rather than restorative – social influence. The myth of an America offering equal opportunity to all regardless of gender, race, and other disadvantaged identities persists. Should continuing inequality be recognized, which groups stand to lose ground, and what type of social and economic justice, as envisioned by Howland, ought to be pursued? The idea of great disparity as a necessary evil (social Darwinism) remains an economic theory so deeply ingrained in our national narrative that it is often revered as unassailable, forestalling conversations that might otherwise pose promising alternatives but that have the potential to revise our current economic paradigms.

If there is anything we can learn from Howland’s ideas, it’s that justice in work relations cannot be achieved within the current capitalist system, nor can they be achieved by simply redistributing property. To secure a just system for women, said Howland said, the caretaking duties that women are often burdened with also need to be redistributed.

Cover Image: Ironing Day- vintage stereoscope card via photopin (license)

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The Global Vacuum Cleaner: how we suck the wealth out of poor nations

 

Introduction

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Srinivasa Ramanujan was one of the greatest mathematical geniuses in history. He was born in a small village in rural India. But his village was very poor. He was often unable to afford food, and finally died at the age of just 33, from a disease associated with dirty water. His death could have been easily prevented, but Ramanujan could not afford a doctor. (source)

That was a hundred years ago. Today, India still produces great thinkers. Take Amit Garg for example. He recently broke the world record for dividing a ten digit number by a five digit number, all in his head. But to find the best funded universities, Amit had to move to America.

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How can India be so rich in people, yet so poor in money? How can it still be poor after a hundred years of investment and progress? Indians work just as hard as people in richer nations; heir nation has democracy, trade, and natural resources. Yet, the average Indian wage is still a tiny fraction of the average American wage. Why?

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(source)

This problem is repeated in many developing nations. Why?

Whenever rich nations and poor nations both exist, the money is often sucked from the poor into the rich. Differences in income act like a gigantic global vacuum cleaner.

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This is true no matter how clever or hard working the poor people are, and no matter how much the rich try to send aid. This essay looks at why.

Summary

The border between rich and poor nations acts as a Global Vacuum Cleaner. Rich individuals’ greater buying power means that things of value will tend to be sucked out of poor nations into rich nations, leaving poverty behind.

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This is not the only economic force at work of course. There are other major forces, such as where the rent goes on land, establishing overseas factories, charitable giving, etc. Some of these can be used to counteract the vacuum. But this essay is a reminder that the natural effect of inequality is to suck wealth from the poor to the rich. This effect is so fundamental, so constant, that it dwarfs any aid budget.

Ironically the GVC even hurts rich nations. Without the vacuum, poor people could create more wealth, then both nations would benefit far more from trade and faster scientific advances.

 

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The problem

Imagine two nations:

Tenland, where people earn ten dollars per hour.

And Oneland, where people earn one dollar per hour.

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Both nations make products that take an hour to manufacture. So a product from Oneland costs one dollar. But a product from Tenland costs ten dollars.

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Imagine you live in Tenland. Obviously you will buy your products from Oneland, because they only cost one dollar instead of ten.

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But if you live in Oneland and need something from Tenland (as you will from time to time), then you have to pay ten dollars. You have to work ten times longer than if you bought something locally.

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Thus, work goes from Oneland to Tenland at a rate ten times faster than it goes the other way. The border becomes a Global Vacuum Cleaner (GVC), sucking the work out of Oneland. Eventually, Oneland gets in debt to Tenland, and has to sell its natural resources in a haste just to pay the bills.

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Onelanders have to work longer and longer hours. Few can afford to save for retirement, so they have more children instead: your children look after you in old age. But more mouths to feed means more work to be done: so even the children have to work.

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Tenland not only sucks out products and natural resources, it sucks out the best brains as well. Tenland welcomes anyone who can create a lot of wealth. But ordinary Onelanders don’t get visas: Tenlanders are afraid of their own wages going down.

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It gets worse

One way out is for Oneland to increase the value of what it sells. Oneland could buy Tenland machines and starts manufacturing more advanced goods. The machines would be expensive: Oneland would need to sell everything it had, but these Tenland machines mean it can compete like Tenland, right?

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Wrong. Tenland virtually always has better machines. It uses Oneland’s cheap raw materials (e.g. Congolese Coltan for electronics), and can thus make products for a similar price. However, Tenland has more machines and can offer a much better choice, enabling Tenland to sell for more.

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The GVC gives so much power to one side that trade rules themselves are written to favor the rich countries. When international rules are decided, Tenland will specify things that only it can produce. All in the name of quality and safety, of course.

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The GVC gets a further boost from the “race to the bottom”: some parts of Oneland will be so poor that the people will do absolutely anything to get money. So anyone from Oneland who charges more cannot sell.

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What can we do?

What if the people of Oneland close their borders? Then the GVC stalls. But Oneland is hindered from improving its condition without machines from Tenland. Oneland needs to buy from Tenland. So, they need Tenland dollars. To get them, they need to sell things to Tenland. This starts the GVC up again.

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What if compassionate Tenland customers just pay extra, so Oneland suppliers can be paid more? This does not change the underlying mathematics of the vacuum. Money will be sucked back into the rich nation.

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A better future

Many people think the global vacuum can never change, because Tenland relies on Oneland for cheap resources.

Yet the opposite is true: if we get rid of cheap labor, the rich actually become richer. This is why:

Consider a world like today, where Tenland sucks value out of Oneland.

vacuum3.jpg

This means Oneland schools do not have many books and Oneland farmers cannot invest for the future. So despite being smart and hard working, Oneland workers and farmers cannot do what Tenlanders do.

So not only does Tenland produce the best value added goods, it also produces some of the best workers and best crops. Tenland even grows its own wood, because Tenlanders like to walk through beautiful forests.

So if we add up all the sources of Tenland wealth, Oneland is a very small part.

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With more recycling, Tenland would rely on Oneland for even less.

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But if Tenland can make money on its own, so can Oneland. If Onelanders were paid as much as Tenlanders, and used the same self-sufficient methods, they would create the same wealth as Tenland.

But what of Tenland’s small reliance on cheap Oneland materials? Yes, each would pay more for that small amount. But each would gain a greater profit due to increased trade.

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For a real world example, compare how much the USA gained from Japan before and after Japan became wealthy. Cheap rice is nice, but better cars and better software are much more useful.

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When two nations are wealthy they both make more money. Because they have more choice, and faster scientific progress.

Imagine a world with no more Onelands. No more desperate people to support terrorism or cut down rain forests just to survive. More inventions and artists. And the side effect of more recycling means the planet is safe for the next ten thousand years.

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Conclusions

  1. The Global Vacuum Cleaner (GVC) is a natural result of unequal wages.
  2. So for every dollar we give in aid, tens or hundreds of dollars come in the other direction.
  3. But if the poor are paid more, then the rich would make even more money.
  4. Shutting down the GVC also creates peace and a better environment.

What to do?

How do we create a world where the poor are paid more? We need two changes:

  1. Create more wealth and more jobs, so we no longer fear immigration.
  2. How do we do that? We need to remove artificial shortages, i.e. the hoarding of natural resources domestically. This will enable us to no longer rely on stripping poor nations of their natural resources.

Postscript

This essay was inspired by an article from Oxfam in the 1980s. It calculated that for every dollar given in aid, ten dollars or more comes back in the form of lower prices for raw materials.

That fact changed my life. It led me on a quest to understand the economics of poverty and wealth. I try to avoid relying on statistics, as these can be endlessly interpreted. Where possible I want to understand the underlying logic, and the logic behind the logic. Hence my own web site, AnswersAnswers.com.

Thanks for reading.

Chris Tolworthy, February 2015

References

Ramanujan image:
Oberwolfach Photo Collection, Creative Commons License: Attribution-Share Alike 2.0 Germany, via.Wikimedia.

Ramanujan biography:
Robert Kanigel (1991), “The Man Who Knew Infinity: a Life of the Genius Ramanujan.” New York: Charles Scribner’s Sons. ISBN 0-684-19259-4.)

Amit Garg facts:
From the Tribune of India, 23 April 2012. http://www.tribuneindia.com/2012/20120424/main4.htm)

GDP per capita:
World Bank, 2013 figures

Henry George Photo
Copyright expired image, via “Henry George: 100 Years Later”

Ethical trade statistics:
Peter Griffiths (2011), “Ethical objections to Fairtrade.” The Journal of Business Ethics July 2011. Online copy: http://www.griffithsspeaker.com/Fairtrade/Ethical%20Objections%20to%20Fairtrade%20web.pdf

All other art by the author.

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