The
Uncertain Future of the Metropolis |
[Reprinted from The
Henry George News, March 1980]
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I learned about this conference on the "Future of the Metropolis"
just after returning from the ruins of ancient Greece. I could not help
but visualize future people, two or three centuries from now, wandering
through the ruins of our cities. Would they be puzzling over the eclipse
of a great civilization, as I was at the haunting temples of Delphi and
the cyclopean walls at Mycenae?
These unsettling thoughts are not mere metaphor. Pessimism intrude*
insistently on anyone who tries to project the future from current
trends. Most signs of our times add up to a grim forecast of what
tomorrow holds.
The single element that makes me apprehensive about the future of our
cities is our land system. Tentacles of our misguided land policies are
choking almost every vital aspect of metropolitan life. This is doubly
worrisome, because the full dimensions of the land problem have barely
surfaced in the public consciousness. To put it in the vernacular, most
of us don't know what's eating us.
We have scarcely begun to identify the causes of today's city land
problems. This is not to denigrate the legions of good folk -- officials
and citizens alike -- who are trying desperately to cope with the daily
disasters. But without a better notion of what is producing these
disasters, we are unlikely to stem the flood.
A major problem, certainly, is our distorted land system that operates
around the clock and around the calendar, and under the full sanction of
the law. It rips off the poor, saps small business, and deprives
municipalities of their rightful revenue.
The people as a whole create land values, not only by their presence,
but also through participation in government, as taxpayers. Schools,
firehouses, streets, police, water lines -- the whole gamut of public
works and services that enhance a neighborhood are converted into higher
land values. The taxpayers of the entire country, through federal aid
for our multi-billion-dollar Metrorail project, have been boosting
Washington, D.C. land values mightily.
Not all land values are manmade. Inherent qualities also give land
special advantages: fertile soils in farming districts, scenic views in
residential areas, subsurface riches of coal, oil, and minerals. None of
us, as landlords, tenants, or governments, can lay claim to having
created these values. The people who have been drawing up an
international law of the Seas have characterized these natural
endowments as "the common heritage of mankind", where no
people, individually or collectively, produce these land values, it is
difficult to argue with the conclusion that they belong to all people
equally.
If the institution of private property has a sound foundation, and I
believe it does, then it rests on the principle that people have a right
to reap what they sow, to retain for themselves what they themselves
produce or earn. Land values, produced by all of society, and by nature,
do not conform to this prescription.
In the case of Washington, B.C., most landowners are petty holders. The
biggest portion of their property value is in their homes or small
shops, only 15 or 20% in land. Only five per-cent of the city's
properties, land and buildings together, are valued over $100,000.
Because the high peaks of land values are concentrated mainly in the
central business district, those who walk away with the lion's share of
the community's land values are a mere handful of owners.
Decade after decade, billions of dollars in urban land values are being
siphoned off by a narrowing class that has no ethical or economic claim
to them. To be outraged when a few ghetto dwellers, in an occasional
frenzy of despair, engage in looting on a relatively miniscule scale,
but to remain indifferent to this massive, wholesale looting, is worse
than hypocritical. It is to ignore a catastrophic social maladjustment,
more severe, I believe, than anything the U.S. has experienced since
slavery.
Henry Reuss, Chairman of the House Committee on Banking, Finances and
Urban Affairs, recently pointed out, that over the past thirty years,
the Consumer Price Index rose 300%, the price of the average new home
went up 500%, and the price of the land under that average new house
went up 1,275%. "Ways must be foundV1 he said, "to curb the
tendency to invest more and more in land, a passive activity that adds
not a single acre to the nation's wealth. Instead we must encourage
investments in job-creating plant and equipment."
One optimistic note amidst the pervading pessimism is the work being
done toward the creation of land price index. H.U.D. and the Urban Land
Institute contracted with fifteen people to construct land price indexes
in selected metropolitan areas. Next month, this group will review what
has been uncovered about the availability, reliability, and
compatibility of various land price data, and they will spell out
national needs and uses for a land price index. This index might serve
as an alarm that goads us into examining phenomena, that have been
largely shielded from public scrutiny. This process could begin to
inform a whole set of policies, starting people to think in new
directions.
The land problem is far from the only important perspective from which
to view cities. It looms in importance to me, not so much because of the
dead civilizations I recently visited, but 'because the evils of
landlordism were well-engraved in my consciousness during a year in
South America. Compared to Ecuador, of course, the U.S. is almost
Utopia, in many respects. But I sense that we are drifting
rapidly-towards a landlord-dominated society.
Economic trends point toward bigger and bjgger recessions. I do not
expect we will ever have another 1930's-type depression. I doubt whether
people will accept or tolerate such unemployment or misery. Instead, I
believe they will demand the use of extraordinary governmental powers to
tell us where to work, what wages to accept, what goods to produce -- in
short, a degree of regimentation that will threaten many cherished
freedoms.
Before that happens, the opportunity awaits to see whether a reasonably
free economy can still be made to work. Unless we tackle the land
question, and the looting of America, that game may be forfeited.
The future of the metropolis is uncertain. The choice is ours. We can
intervene in the way society is now headed, to preserve the American
dream. Or, we can continue along the present path and await the American
nightmare.
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