Quotulatiousness

June 8, 2018

The spiritual and aesthetic brutality of Brutalist architecture

Filed under: Architecture, Britain, Government, History — Tags: , , , — Nicholas @ 03:00

In City Journal, Catesby Leigh looks at (and shudders at) some of the best-known examples of Brutalist architecture in the UK:

World War II left Britain in urgent need of rebuilding. The Blitz destroyed 200,000 homes and left another quarter-million uninhabitable. In the severely overcrowded urban slums, often blighted by industrial pollution, families lived without indoor plumbing, and they shared outdoor privies with neighbors. Others found shelter in temporary prefabricated homes produced by the aviation industry. In 1946, the government legislated the creation of new towns that, along with extensions of existing ones, would eventually be home to more than 2 million Britons. Aside from the new towns, a multitude of urban renewal and greenfield-development schemes emerged during the economically vigorous 1950s and 1960s. Housing “estates” erected by city and other local councils, mainly for lower-income residents, sprang up at a vertiginous rate, along with new office buildings, civic centers, shopping centers, parking garages, schools, hospitals, factories, and university buildings. Some 1.5 million prewar homes were demolished in the three decades following the war. Old urban centers were transformed: “Post-war Birmingham rebuilt itself in austere raw concrete, like Kuwait and Hanover and Manila,” Christopher Beanland enthuses in Concrete Concept: Brutalist Buildings Around the World. But by the late 1960s, it was obvious that most Englishmen weren’t keen on the idea of Birmingham looking like Kuwait and Hanover and Manila.

[…]

Park Hill, half-abandoned council housing estate, Sheffield, England
Photo via Wikimedia Commons

Many of the buildings that Harwood’s book covers make you wonder whether it is really about architecture at all. Consider Park Hill (1961), a huge council-housing estate containing nearly 1,000 duplexes and single-level flats that partially replaced a demolished slum overlooking downtown Sheffield — a crime-ridden precinct that, for all its problems, had housed a resilient community. Laid out as four long, interconnected slabs inflected so as to form an utterly antiurban, vermiculated footprint, Park Hill owed an enormous debt to the Unité d’habitation. At every third story, it featured elevated open-air “streets” or “decks” — the Corbusian fetish of the day — that ran indoors and out, connecting the slabs. As at the Unité, the imagery was nakedly industrial, with the apartments stashed in a “bottle-rack” grid of concrete that soon assumed a depressingly drab tincture and also proved prone to spalling. A ruthless rationalism likewise asserted itself in the level height maintained throughout the complex, which ranged from four to 13 stories, despite the irregular, sloping site. Park Hill was less a work of architecture than a huge, strange contraption inflicted on the urban skyline. Visual amenity, such as it was, came in the form of soft-hued brick within the concrete grid.

A typical deck in the Park Hill Flats, Sheffield.
Photo via Wikimedia Commons.

As with many postwar housing projects, Park Hill offered practical amenities that residents had never before enjoyed: indoor plumbing, hot water, mechanical heating, even a sophisticated garbage-disposal system. Harwood mentions that, Britain’s many council-housing catastrophes notwithstanding, Park Hill “stood firm.” This is not true. By 1979, less than 20 years after its completion, Park Hill was an urban basket case — riddled with graffiti, terrorized by hooligans, afflicted with irruptions of black mold and the terrible stench resulting from waste-disposal blockages. Deserted decks and stairways provided criminals with multiple escape routes.

[…]

Local journalist Peter Tuffrey’s Sheffield Flats, Park Hill and Hyde Park: Hope, Eyesore, Heritage — whose title might seem to play ironically off Harwood’s but for the fact that the book appeared two years earlier — allows us to study a map and old photographs of the slum that Park Hill and Hyde Park supplanted. What we see are blocks, courts, and alleys teeming with row houses and low-rise tenements — streetscapes displaying a human scale, much solid construction, and considerable dereliction, all to be swept away by the desolation of the Corbusian superblocks.

Harwood doesn’t trouble herself with the Hulme Crescents (1972), another assemblage of concrete slabs on the vermiculated, “streets-in-the-sky” plan that rose from the blank slate of a demolished Manchester working-class district where 90,000 people once lived — “the human engine-room of the Industrial Revolution,” as Lynsey Hanley calls it in her largely autobiographical and often engrossing Estates: An Intimate History. The Crescents, designed to house more than 13,000, were conceived in emulation of Bath, the gorgeous Georgian city. Things didn’t work out that way.

“Almost immediately, the estate’s infrastructure began to suffer from the same problems that beset Park Hill and Broadwater Farm [a troubled north London estate]: leaky roof membranes, infestations of vermin and insects, uncontrollable damp, deserted walkways, and an endemic feeling of isolation,” Hanley notes. “The flats were so expensive to warm that many tenants never turned the central heating on, and communal areas were so difficult to maintain that the [city] council could not cope. When a small child died after falling off the top-floor ‘access deck’ of one of the Crescents in 1974, families decamped to the outskirts, belatedly following the rest of old Hulme.” The Crescents’ descent into chaos did make it possible for an anarchic punk scene to flourish in an upper-level hangout known as The Kitchen. The party ended with the estate’s demolition during the 1990s.

[…]

Still, the folly of concentrating lower-income populations in tall buildings eludes her, just as it eluded the Tory government that, in 1956, introduced hugely generous subsidies for the construction of high-rises, relative to row houses and semidetached houses. Not only are tall buildings much more expensive to build and maintain than houses; they were not even essential to achieving the residential densities that postwar planners sought. Tall buildings are highly artificial and complex structures housing temperamental machines, like elevators, that require a heightened degree of maintenance, often by highly paid technicians rather than handymen with toolboxes and stepladders, as Hanley observes. Tall buildings also require an elevated degree of social discipline, as well as security features like intercom systems, closed-circuit TV, and doormen or concierges. The tower blocks and high-rise slabs at the Barbican Estate, the carefully developed, elaborately landscaped, intensely picturesque Brutalist “bankers’ commune” in the City of London, have been very successful. The appropriate synecdoche for the Barbican’s low-end counterparts, however, might well be a broken-down elevator littered with trash, defaced by graffiti, and reeking of urine.

April 13, 2018

QotD: Reynolds’ Law

Filed under: Government, Quotations, USA — Tags: , , — Nicholas @ 01:00

The government decides to try to increase the middle class by subsidizing things that middle class people have: If middle-class people go to college and own homes, then surely if more people go to college and own homes, we’ll have more middle-class people. But homeownership and college aren’t causes of middle-class status, they’re markers for possessing the kinds of traits — self-discipline, the ability to defer gratification, etc. — that let you enter, and stay, in the middle class. Subsidizing the markers doesn’t produce the traits; if anything, it undermines them.

Glenn Reynolds, Instapundit.com, 2010-09-23.

April 1, 2018

QotD: Modularity

Filed under: Humour, Quotations, Technology — Tags: , — Nicholas @ 01:00

I was able to repair my sewer system because everything in it was modular. The pipe leading out of the house was made up of identical sections of fired clay pipe put together like legos. They were made of durable stuff, and they were installed to work using gravity alone. They worked for over one hundred years despite the efforts of dozens of people to screw them up in the interim. If they were a unitary system of some sort, and they failed, I would have been forced to replace them as a unitary system. To translate, that would have meant moving into a cardboard box behind a strip mall dumpster.

I could fix the broken components, and leave the others alone. Don’t underestimate the importance of this concept. In housing, everyone desires everything to be unitary, and wants it to be brand new forever. I can’t fix a modern house. I’m a dolt, but that’s not why I can’t fix it. In general, everything to do with a modern house can be replaced, but it can’t be fixed. If your hardwood strip flooring is worn, you can sand it and refinish it and get another fifty years out of it. If someone puts a coal out on your Pergo floor, you can lump it, or you can replace it. It’s sold as permanent. In real life, “permanent” really means “disposable.” The word “sustainable” is similar. It really means “in need of massive, permanent subsidy.”

Sippican, “You May Not Believe This, But ‘Weapons-Grade Nuts’ Is the Name of My Psychedelic Furs Tribute Band. But I Digress”, Sippican Cottage, 2016-03-16.

March 6, 2018

Real estate reality may finally be changing minds in Silicon Valley

Filed under: Business, Technology, USA — Tags: , , , — Nicholas @ 03:00

I’ve never lived in Silicon Valley, and my one vist there was over 25 years ago — but even then, I thought the real estate market was far higher than it should have been. The sale of a tiny house in Sunnyvale (for $2 million or $2,358 per square foot) is symbolic of real estate values all around the area, as the stories get told of new employees living in their cars because even on six-figure salaries, they can’t afford to buy or even rent near where they work. Iowahawk linked to a New York Times article which shows that some movers and shakers acknowledge that Silicon Valley has a serious problem:

February 8, 2018

The revenge of the return of the bride of rent control

Filed under: Economics, Politics, USA — Tags: , — Nicholas @ 05:00

Megan McArdle on the unexpected return of one of the very worst economic policies known to mankind, or as our beloved Prime Minister would insist “peoplekind”:

According to the Wall Street Journal, rent control seems to be making a retro comeback. Most forms of intelligent life could be forgiven for asking why.

Serial experimentation with this policy has repeatedly shown the same result. Initially, tenants rejoice, and rent control looks like a victory for the poor over the landlord class. But the stifling of price signals leads to problems. Rent control starts by producing some sort of redistribution, because the people with low rents at the time that controls are imposed tend to be relatively low-income.

But then incomes rise, and rents don’t. People with higher incomes have more resources to pursue access to artificially cheap real estate: friends who work for management companies, “key fees” or simply incomes that promise landlords they won’t have to worry about collecting the rent. (One of my favorite New York City stories involves an acquaintance who made $175,000 a year, and applied for a rent-controlled apartment. He asked the women taking the application if his income was going to be a problem; she looked at the application and said, “No, I think that ought to be high enough.”)

So the promise of economic justice erodes over time, as lucky insiders come to dominate rent-controlled apartments, especially because having gotten their hands on an absurdly cheap apartment, said elites are loathe to move and free up space for others.

The longer the rent-control policies remain, the more these imbalances grow. The gap between the rent that is charged, and the rent that could be charged in a competitive market, widens. Deprived of the ability to make a profit, landlords skimp on maintenance and refuse to build new housing. If you loosen the law to incentivize renovation, or new building, this only creates new forms of dysfunction: discrimination against tenants who might stay longer than a few years (limiting the ability to raise rents); a decontrolled market that has to absorb all of the excess demand created by locking up so much of the housing market in rent-controlled leases that rarely turn over; even landlords who renovate too often, the better to raise the rent. This arrangement is very good for the people who happen to have gotten their hands on a rent-controlled apartment, and very bad for everyone else, especially newcomers to the city.

January 27, 2018

Econ Duel: Rent or Buy?

Filed under: Economics — Tags: , , , — Nicholas @ 02:00

Marginal Revolution University
Published on 13 Sep 2016

Owning a home is a huge part of the American Dream. But is the dream of home ownership really all it’s cracked up to be?

In this new Econ Duel from Marginal Revolution University, Professors Tyler Cowen and Alex Tabarrok weigh in on the issue. Each representing a side of the home ownership debate, the two professors ask what’s smarter — to rent, or to buy?

On the “buy” side, Tyler Cowen shares the tax advantages of buying a home as well as the effect home ownership has on one’s stability and savings regimen. Does buying a home force us into better savings habits?

Against those arguments, we have Alex Tabarrok, coming down on the “rent” side of the equation.

Among other points, he talks about the real beneficiary of tax breaks (hint: It may not be you!). Along with that, Alex tackles the trials and tribulations of home-buying, in places like San Francisco, New York, or Boston, where a combination of scarce building permits and increased demand drive up home prices. Plus, doesn’t owning a home — and committing a 20% down payment — break the diversification rule of good investing?

All that said, though, here’s the real question that matters — which side are YOU on? Watch and let us know in the comments!

November 16, 2017

Housing woes in the downtown core

Filed under: Britain, Humour — Tags: , , — Nicholas @ 03:00

A timely and clearly heartfelt plea by Eleanor Shaw that only needs a brief preface from Colby Cosh:

All I want are the same things my parents wanted – a good job, a loving partner and a two-bedroom live/work space with balcony in a nice area of the world’s third-richest city.

It’s easy for the Gen Xers and Baby Boomers. To them, with low property prices in areas considered ‘undesirable’ at the time and interest rates between five and 15 per cent, getting a mortgage was easy.

But for us, those opportunities have gone. To live anywhere in London, even somewhere unsexy, is prohibitively expensive. All the nice houses are already owned by older people with better jobs, a situation surely unique in the history of the world.

And it’s not just London. In all the other cool cities around the UK – Edinburgh, Bristol, Manchester – stylish city-centre properties suitable for fashionable twentysomethings are priced far, far beyond our reach.

[…]

The government must act now to build affordable properties for millennials, and support us during our tough first decade in the capital as we work our way up in our careers until we have cleared our debts and are pulling in seven figures.

Then, and only then, can we sell our London homes to developers and move to massive houses in the country.

November 7, 2017

Le Corbusier

Theodore Dalrymple could never be called a fan of Le Corbusier’s architecture:

The French fascist architect Charles-Édouard Jeanneret, better known as Le Corbusier, was another of this charmless ilk, though cleaner than Brecht (a Marxist, the latter’s decision not to wash was his tribute, albeit not a very flattering one, to the proletariat). Jeanneret’s inhumanity, his rage against humans, is evident in his architecture and in his writings. He felt the level of affection and concern for them that most people feel for cockroaches.

Like Hitler, Jeanneret wanted to be an artist, and, as with Hitler, the world would have been a better place if he had achieved his ambition. Had he been merely an artist, one could have avoided his productions if one so wished; but the buildings that he and his myriad acolytes have built unavoidably scour the retina of the viewer and cause a decline in the pleasure of his existence.

One of Jeanneret’s buildings can devastate a landscape or destroy an ancient townscape once and for all, with a finality that is quite without appeal; as for his city planning, it was of a childish inhumanity and rank amateurism that would have been mildly amusing had it remained purely theoretical and had no one taken it seriously.

A book has just been published — Le Corbusier: The Dishonest Architect, by Malcolm Millais — that reads like the indictment of a serial killer who can offer no defense (except, possibly, a psychiatric one). The author shares with me an aesthetic detestation of Jeanneret, and also of his casual but deeply vicious totalitarianism; but, unlike me, the author both has a scholarly knowledge of his subject’s life and writings, of which the perusal of only a few has more than sufficed for me, and is a highly qualified structural engineer. Mr. Millais is able to prove not only that Jeanneret was a liar, cheat, thief, and plagiarist in the most literal sense of the words, a criminal as well as being personally unpleasant on many occasions, but that he was technically grossly ignorant and incompetent, indeed laughably so. His roofs leaked, his materials deteriorated. He never grasped the elementary principles of engineering. All his ideas were gimcrack at best, and often far worse than merely bad. To commission a building from Jeanneret was to tie a ball and chain around one’s own ankle, committing oneself to endless, Sisyphean bills for alteration and maintenance, as well as to a dishonest estimate of what the building would cost to build in the first place. A house by Jeanneret was not so much a machine for living in (to quote the most famous of his many fatuous dicta) as a machine for generating costs and for moving out of. In the name of functionality, Jeanneret built what did not work; in the name of mass production, everything he used had to be individually fashioned. Having no human qualities himself, and lacking all imagination, he did not even understand that shade in a hot climate was desirable, indeed essential.

October 23, 2017

QotD: Cargo cult economics

Filed under: Economics, Quotations, USA — Tags: , , , — Nicholas @ 01:00

Once upon a time, government officials decided it would help them keep their jobs if they could claim they had expanded the middle class. Unfortunately, none of them really understood economics or even the historical factors that led to the emergence of the middle class in the first place. But they did know two things: middle class people tended to own their own homes, and they sent their kids to college.

So in true cargo cult fashion, they decided to increase the middle class by promoting these markers of being middle class. They threw the Federal government strongly behind promoting home ownership and college education. A large part of this effort entailed offering easy debt financing for housing and education. Because the whole point was to add poorer people to the middle class, there was a strong push to strip away traditional underwriting criteria for these loans (e.g., down payments, credit history, actual income to pay debt, etc.)

We know what happened in the housing market. The government promoted home ownership with easy loans, and made these loans a favorite investment by giving them a preferential treatment in the capital requirements for banks. And then the bubble burst, with the government taking the blame for the bubble. Just kidding, the government blamed private lenders for their lax underwriting standards, conveniently forgetting that every President since Reagan had encouraged such laxity (they called it something else, like “giving access to the poor”, but it means the same thing).

Warren Meyer, “Cargo Cult Social Engineering”, Coyote Blog, 2012-11-28.

October 19, 2017

Richard Florida oversold his “creative class”

Filed under: Cancon, Economics, Media — Tags: — Nicholas @ 03:00

Rick McGinnis reviews the latest book by the much-celebrated Richard Florida … which walks back a lot of what his last book pushed:

With his new book, The New Urban Crisis, Florida concedes that he might – just might – have overstated his case. The gaps between the rich and poor have increased, particularly in the case study cities that Florida described and, later, championed as an advocate of his pet theory. The so-called creative class has transformed cities, mostly by colonizing the most attractive districts, aggregating most of the wealth around them, and increasing house prices exponentially, driving the less fortunate classes – Florida’s “service class” and an equally distinct and diminishing working class – into insalubrious neighbourhoods, often at the city’s fringes.

To be fair, it was a case well sold, and it made Florida a star in his field, ultimately landing him at the head of something called the Martin Prosperity Institute at the Rotman School of Management at the University of Toronto. The idea of some sort of vaguely defined creative class as a benign invasion, reviving run-down areas once home to workers or industry with their peculiar and mysterious social, cultural and economic alchemy, had a lot of appeal to the sorts of people who run cities – politicians, developers and realtors, mostly.

The vagueness of what constituted the “creative class” no doubt helped sell Florida as an urban visionary – it could be stretched to include everyone from gallery owners, photographers, and art directors to claims adjusters, funeral directors, and tax collectors. In Florida’s theory, as one critic noted, “distinctive spatial and political proclivities are bunched together, purely on the basis of educational attainment, and with little demonstrable relationship to creativity.” Much of the good press was probably helped by the fact that journalists had pride of place in the creative class.

[…]

There’s a sleight of hand at work with Florida’s theory, as the middle class that he bemoans as disappearing has actually been largely absorbed by him into the very elastic borders of the creative class, where vast armies of white collar workers find their home alongside tiny numbers of arts bureaucrats and musicians. His fetish for IT workers in particular seems curious, since many of the jobs being done in vast, architecturally praised tech campuses are, in basic function indistinguishable from the sort of grinding desk labour done on vast office floors in skyscrapers by men in gray flannel suits, 60 years ago.

October 11, 2017

The Great Recession

Filed under: Economics, Government, USA — Tags: , , , , — Nicholas @ 04:00

Marginal Revolution University
Published on 9 Aug 2016

There’s already been much discussion over what fueled the Great Recession of 2008. In this video, Tyler Cowen focuses on a central theme of the crisis: the failure of financial intermediaries.

By 2008, the economy was in a very fragile state, with both homeowners and banks taking on greater leverage, many ending up “underwater.” Why did managers at financial institutions take on greater and greater risk? We’ll discuss a couple of key reasons, including the role of excess confidence and incentives.

In addition to homeowners’ leverage and bank leverage, a third factor played a major role in tipping the scale toward crisis: securitization. Mortgage securities during this time were very hard to value, riskier than advertised, and filled to the brim with high risk loans. Cowen discusses several reasons this happened, including downright fraud, failure of credit rating agencies, and overconfidence in the American housing market.

Finally, a fourth factor joins homeowners’ leverage, bank leverage, and securitization to inch the economy closer to the edge: the shadow banking system. On the whole, the shadow banking system is made up of investment banks and various other complex financial intermediaries, highly dependent on short term loans.

When housing prices started to fall in 2007, it was the final nudge that pushed the economy over the cliff. There was a run on the shadow banking system. Financial intermediaries came crashing down. We faced a credit crunch, and many businesses stopped growing. Layoffs ensued, increasing unemployment.

What could have been done to prevent all of this? You’ll have to watch the video to find out.

September 16, 2017

QotD: The US housing market

Filed under: Economics, History, Quotations, USA — Tags: , , , — Nicholas @ 01:00

… up until fairly recently, the home mortgage market was the most conservative financial market out there. The market was not a big money maker because risks were very low and the money was steady. The home mortgage market was the realm of community banks who held the mortgages as assets for the life of the loan. It was the 3-6-3 lifestyle. Borrow from the financial markets at three percent, make home mortgages at six percent and hit the links at 3:00 PM. That all changed in the early 1990’s when Democrat policymakers passed the Community Reinvestment Act and then forced banks to make loans that were far more risky in areas that the banks, for good reasons traditionally stayed away from. Then through Fannie Mae and Freddie Mac the “policymakers” bundled the good and bad paper and sold it on the financial markets creating the current mess. What I don’t understand is how increased home ownership was supposed to increase rents.

Home ownership has been a policy of multiple administrations since WW2, as has suburbanization. There are a bunch of reasons for this. One big one was that the policymakers were, for a bunch of reasons, not fond of urban life. It was considered dirty, old fashioned and perhaps most importantly a big target. This was not a small consideration to people coming back from all those ruined cities overseas.

John C. Carlton, “Who ‘Stole’ The Country’s Wealth, The Rich, Or Government ‘Policy Makers?'”, The Arts Mechanical, 2015-10-16.

August 2, 2017

Ontario has scared off foreign home-buyers, but bureaucratic delays still make housing more expensive

Filed under: Bureaucracy, Business, Cancon, Economics — Tags: , , , , — Nicholas @ 04:00

Josef Filipowicz and Steve Lafleur explain why Ontario’s recent crack-down on foreign home-buyers in the Greater Toronto Area still leaves one of the biggest barriers to affordable housing untouched:

The Ontario Legislature in Queen’s Park, Toronto. (via Wikimedia)

According to a recent announcement from Queen’s Park, 4.7 per cent of properties purchased in Ontario’s Greater Golden Horseshoe (between April 24 and May 26) were acquired by foreign individuals or corporations. This in the wake of the raft of measures announced in April including a 15 per cent “Non-Resident Speculation Tax” ostensibly aimed at improving housing affordability.

It’s difficult to say how this portion of the housing market — foreign buyers — ultimately impacts the cost of buying or renting in Canada’s biggest urban region, and it’s far too soon to estimate the effects of the myriad of policy changes the Ontario government is introducing. But what we do know is that the laws of supply and demand apply to housing, and it’s hard to believe that a small percentage of buyers are responsible for the massive appreciation of housing prices in the GTA over the past decade. Rather than focus on a small tranche of buyers, we should focus on ensuring that regulations don’t prevent the supply of new housing from meeting demand.

[…]

So what’s preventing cities in the Greater Golden Horseshoe from issuing more building permits?

In short, red tape at city hall. Between 2014 and 2016, Fraser Institute researchers surveyed hundreds of homebuilders across Canada to better understand how government regulation affects their ability to obtain permits. In the Greater Golden Horseshoe, it typically takes one-and-a-half years to obtain a permit in this region, and per-unit costs to comply with regulation amount to almost $50,000. Approval timelines can also be affected by the need to rezone property. Approximately two-thirds of new homes in the region require this procedure, which adds 4.3 months (on average) before builders can obtain permits.

Another deterrent to more supply is local opposition to new homes. Survey results show that council and community groups in Toronto, King Township and Oakville are more likely to resist the addition of new units in their neighbourhoods, effectively preventing newcomers from moving in.

Update, 3 August: Mission accomplished. Toronto home sales plummeted 40 percent in July.

May 22, 2017

Why Do We Have Grass Lawns

Filed under: Economics, Environment, History, USA — Tags: — Nicholas @ 04:00

Published on 17 Apr 2017

In this video:

Maintaining the perfect lawn takes a lot of work. There’s mowing, fertilizing, aerating, and watering. Having a trimmed green field leading up to your front door is something of a status symbol, and in some cases having a messy front lawn can get you into trouble with your more obsessive neighbours.

Want the text version?: http://www.todayifoundout.com/index.php/2014/03/grass-lawns-2/

May 9, 2017

QotD: Wage floors and rent ceilings

Filed under: Economics, Government, Quotations, USA — Tags: , , , , — Nicholas @ 01:00

[Progressives] tend to favor policies such as New York City’s rent controls, and the new $15 minimum wage being gradually phased in in some western cities. I like to think of these policies as engines of meanness. They are constructed in such a way that they almost guarantee that Americans will become less polite to each other.

In New York City, landlords with rent controlled units know that the rent is being artificially held far below market, and thus that they would have no trouble finding new tenants if the existing tenant is unhappy. So then have no incentive to upgrade the quality of the apartment, or to quickly fix problems. They do have an incentive to discriminate against minorities that, on average, are more likely to become unemployed, and hence unable to pay the rent. Or young people, who might damage the unit with wild parties.

Wage floors present the same sort of problem as rent ceilings, except that now it’s the demanders who become meaner, not the supplier. Firms that demand labor in Los Angeles in the year 2020 will be able to treat their employees very poorly, and still find lots of people willing to work for $15/hour.

Scott Sumner, “How bad government policies make us meaner”, Library of Economics and Liberty, 2015-08-25.

« Newer PostsOlder Posts »

Powered by WordPress