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The Uncertain Future of the
Metropolis
Walt Rybeck
[Reprinted from The Henry George News, March 1980]
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
intrudes 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 percent 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 found" 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 bigger 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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