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“Property” is a concept concerning the relationship of people to one another regarding objects that have value. It refers to who is included in the circle of people with a legal right to utilize or dispose of the object(s) in question, and who is excluded. The object, at least in any direct sense, is unaffected by these relationships (of course, it may be affected in terms of how it is utilized, destroyed or exhausted). While at first glance it might appear that property rights define the relationship between individuals and objects (both tangible and intangible), it really defines relationships among people by identifying who can and can’t exclude which others from access to or utilization of those objects (sometimes with the assistance of third parties authorized to enforce these rights).

Two essential truths about property are in tension with one another:

1) A market economy depends on well-defined property rights, and preferably extensive private property rights (in which the right to access and to exclude others from access is vested in a single individual), and a hybrid, predominantly market economy is the most robust producer and distributor of wealth yet discovered; and

2) Property is theft, especially historically.

Most Americans bristle at the second observation, usually assuming that it implies a denial of the first, even when both are stated. But the second observation is clearly accurate, though a bit paradoxical itself (how can property be “theft,” if “theft” presupposes the existence of property?). As a “first cause,” when a human being or group of human beings first encounters land or other objects that they lay claim to, this is the creation of property. Calling this first encounter “theft” is a bit of  a stretch: It can be depicted as “theft” from all other would-be claimants, since it is held by force against others unable to exert superior force, such that its possession isn’t a function of first encounter, but rather a function of greater might. But the “theft” really occurs once the force is exerted.

For the sake of argument, let’s consider this first creation of property to be the one instance in which property is not theft; if those who encounter first can hold it, let’s say they are entitled to do so. All other involuntary transfers, when someone takes property by force from another, can then be considered “theft,” and any subsequent transfers of such stolen property can be considered exactly that.

From prehistory into the modern age, territories have been possessed, defended, conquered, and expanded primarily by means of force. Probably no current tract of land is possessed primarily by the decendents of those who first encountered it. Probably every or virtually every current tract of land is either possessed by someone who is descended from, or was originally purchased from someone who was descended from, some individual or group who took that land from others by force. Thus, all land is stolen property.

There is a line from my novel, set in an ancient civilization, in which a warrior of non-noble birth who is leading an up-start army against the nobles of his own land tells his gathered soldiers before the decisive battle, “if we lose this battle, the nobles will shackle us in chains and label us criminals for doing ourselves what their great-grandfathers did for them.”

It’s not difficult to extrapolate from this objects other than land, since such objects are ultimately derived from the land in various ways (from mined ores, logged timber, and so on). If the land on which resources are found is all stolen property, then the resources exploited upon it are as well.

But that is then and this is now: Given that well-defined property rights, and particularly private property rights, are a cornerstone of a robust economy from which everyone, to varying degrees, benefits (in relation to the alternatives), what difference does it make? The difference it makes is that we stop pretending that property is a god-given right, and that its distribution at any given moment can be defended as somehow inherently just. Of all of the virtues that private property legitimately can be defended as providing, fairness is not, and never has been, one of them.

One of the defining characteristics of private property is the right to give it to whom one wishes at any time, including the right to devise to whom one wishes upon one’s own death. That means that people are born into an inequitable distribution of originally stolen property. Every baby at birth is born into a property-context not of their own making, not to their own credit or fault, which yet determines a great deal of what their opportunities will be. Such determinations are not just due to the direct material implications of the differential property-contexts into which people are born, but also into complex consequences of the property differentials, such as social and professional networks that parents have, the traditions and habits and attitudes associated with the possession and preservation of property that they transmit through socialization, and so on.

Many on the right today want to pretend that the persistent disproportionate poverty of some categories of people –most notably, Native Americans and African Americans– is due to failures of their own. But, while there are complex mechanisms by which this occurs, it is clear that the First Cause of that persistent disproportionate poverty is the fact that people from these categories are born into long chains of unpropertied lineage, chains that began with the theft of the land from those who occupied it when the Europeans arrived, and the importation and conversion of others from another land into property themselves.

There is another complexity, perhaps more salient but even less obvious, that renders the conceptualization of private property as inherently just and equitable a ruse to protect what is in fact quite unjust and inequitable: The fact that property, and wealth, are produced by social processes that involve complex, articulated in-puts and result in socially institutionalized distributions of the product of those processes. In other words, the political economy by which we produce and distribute wealth doesn’t distribute it fundamentally on the basis of merit, as some conveniently mythologize it to be, but rather on the basis of privilege, as has been the case throughout human history.

This system of distribution primarily on the basis of privilege functions through a variety of mechanisms. One such mechanism is that the occupations that receive the highest remuneration are the occupations that require the longest education. Since such education is expensive, it is more easily accessed by those who have the money to invest in it. Since wealth is inherited, and few have earned much on their own prior to entering into such advanced education, it is the wealth of one’s parents that determines the ease of access to the educational opportunities which position one to remain wealthy in the future.

But there are subtler aspects of this system as well, subtler mechanisms embedded within it. Not only are inequitably distributed material endowments transmitted from generation to generation, but so too are the inequitably distributed skill sets and cultural adaptations that are associated with that inequitable distribution of material endowments. Parents teach children how to cope with the world that the parents encountered and understood, and, even as times and opportunity structures change, the sub-cultural adaptations to past circumstances remain embedded in the lineage of socialization transmitted from generation to generation.

While some social mobility exists, and some individuals rise out of the most opportunity-deprived circumstances to achieve phenomenal success against the odds, the actual statistical rates of social mobility are far lower than what many imagine them to be, and the exceptional cases both fewer and less accessible than many imagine them to be. For every exceptional case, there are some set of particular circumstances that applied in that case to make it exceptional (e.g., the good fortune to find an exceptional mentor, an unsually fortuitous genetic endowment, etc.). The underlying fact remains that the opportunities available, on average and in the aggregate, between those born into poverty and those born into wealth are inequitably and unjustly distributed.

So the challenge becomes how to preserve the robustness of markets, which depend on the existence of private property, and at the same time mitigate the inequities and injustices inherent in the existence of private property. This is really what the development of the wealthiest nations, particularly over the last 80 or so years, has been all about: Spiralling toward some balance of robust markets dependent on clearly defined private property rights, and administrative interventions that both preserve the health of those markets and increase the equity of opportunity faced by members of society despite the inequities inherent in private property rights. (The fact that such interventions not only can be used to increase the justness of distribution, but also are necessary to maintaining the functioning of the market economies at all, is evident throughout the historical record, in which periods of underregulation have led to spikes in the concentration of wealth followed by catastrophic market collapses, most notably in 1929 and 2008.)

Though the two necessary functions of government in a modern predominantly market economy (i.e., preserving the efficiency and well-functioning of markets, on the one hand, and increasing the equitability of the distribution of opportunities and benefits produced by those markets, on the other) are closely intertwined, I am focusing only on the latter in this essay. The question is how best to mitigate the inequities of markets without undermining them (and, indeed, whenver possible, enhancing and invigorating them).

There are two areas which rise to the fore: 1) Improving real access to education, at all levels; and 2) heavily taxing inheritance. In fact, education, at all levels, should be completely publicly funded, and the way in which it can be completely publicly funded is through inheritance taxes with gradually rising marginal rates approaching 100% at the extreme heights of personal wealth. Obviously, this is politically impossible in America today, but is approximated in most other developed nations to varying degrees, with unambiguously beneficial results.

There is more involved in improving real access to education than simply making it free to all at all levels. It would also involve community development and related up-front investments which would increase the ability of those who are currently born into lower socio-economic strata to succeed in school, so that the opportunity available is a real one rather than merely a formal one. That is something I discuss in my essays on education (see. e.g., Education Policy Ideas, Real Education Reform , Mistaken Locus of Education Reform, School Vouchers, Pros & Cons, West Generation Academy, American Universities: Two Dimensions on which to Improve).

However we move forward, however we address the myriad challenges and opportunities facing us, it’s time we did so by letting go of the mythologies which insulate social injustice from scrutiny, and instead confronted our world and our social systems as they are, with both strengths and weaknesses, both virtues and shortcomings. There is much that works well and should be defended, preserved, and built upon. And there is much that doesn’t, which should be examined, analyzed, addressed, and improved upon. That is what the human endeavor is all about.

Buy my e-book A Conspiracy of Wizards

Colorado has several comparative advantages that position us to combine a commitment to the preservation of our natural endowment; a commitment to the preservation, refinement, and expansion of the pleasant lifestyle that many enjoy in our beautiful state; a commitment to contributing to the development of the New Energy Economy (an inevitable component of future global economic development); and a commitment to fostering the most robust, sustainable, and equitable state economy, and most proactive, efficient, and effective state government possible.

Our natural endowment, particularly our spectacular mountains, are an economic asset both directly, in the tourism industry, and indirectly, as an attractor for investment capital by those who want to locate small start-ups, particularly in high-value-added information-intensive economic sectors, in the most attractive locations possible (since such sectors have no geographic constraints). And, of course, many Coloradans treasure our natural beauty for its inherent, aesthetic and recreational value, considering it to be one of our greatest assets, even independently of economic considerations.

For these reasons, we need to place a very high emphasis on the preservation of this endowment, carefully regulating other industries and practices (such as mineral extraction) that pose a threat both to the environment, and to public health and safety. Fortunately, despite erroneous ideological assertions to the contrary, mineral extraction, as an economic enterprise, is not highly sensitive to regulations or severance taxes, since there is very little flexibility in where minerals can be extracted (they must be extracted where they are found). Furthermore, since extracted minerals are sold in national and international markets, the increased costs of state regulations and taxes have only a marginal effect on market prices. In other words, the benefits occur within the state while the costs are distributed all over the world. For these reasons, sound policy requires that mineral extraction be a well-regulated and taxed enterprise.

Not only is Colorado rich in minerals, but it is also rich in sun and wind and the researchers and institutions doing the most to tap the energy contained in them. The future can rarely be predicted with confidense, but one thing that is virtually certain is that clean, renewable energy technologies are a growth industry, and will be enormous economic engines in the not too distant future. Foresight pays off in the long run. Investing in the New Energy Economy today, despite the modest size of that economc sector at present, and regardless of short term ups and downs in the market for “green energy”, is sound economic policy, and a smart move for the state of Colorado.

Our natural endowment is part of our pleasant lifestyle, with hiking trails, ski runs, rocks to climb and mountain rivers to float down, and spectacular vistas to appeal to all who enjoy nature’s wonders. But the Colorado lifestyle extends into our cities and suburbs as well, with excellent cycling opportunities, beautiful pedestrian malls, open spaces, and an increasing investment in the combination of excellent public transportation and sustainable, localized, aesthetically pleasing urban development. Continuing in this direction not only provides Coloradans with the benefits of all of these public goods, but also attracts the entrepreneurial capital of precisely those kinds of small start-ups that can create the most robust state economy possible. We live in a world in which the most information-intensive industries (e.g., computer software, and cutting edge technologies) create the greatest number of high-paying jobs, and contribute the most to the local and global economy. And such start-ups in such industries locate in places that provide the combination of natural beauty, pleasant life-style, and infrastructural investment that Colorado can provide, if we pursue wise policies.

But to attract such investment capital, and the young professionals and their families that bring it, we need to provide, competitively, what they are looking for: A well-developed human and material infrastructure on which they can depend, and the assurance of the availability of excellent and affordable public and higher education institutions for their children. We are currently, disgracefully, near the bottom of the country in investment in both public and higher education, and that is a very powerful disincentive to small information-intensive start-ups to locate here. More importantly, it is a moral failure on the part of the people of Colorado. As much of a cliche as it may be, our children are indeed our future, and failing to invest in them, to provide them with the best education possible, simply because an alliance of popular economic platitudes and well-funded corporate interests have displaced economic analyses, is a choice that can end up crippling and impoverishing this state, when nature has endowed us with such soaring opportunity.

There is a clear path forward for Colorado, a coherent strategy that preserves our natural endowment, fuels our economy, and secures a high quality of life for our residents. We need now to make sure that we elect the people, and cultivate the public commitment, to realize this vision, and create a more prosperous, sustainable, and opportunity-rich future for all Coloradans.

2008 Nobel Prize Winning Economist and New York Times Columnist Paul Krugman calls out Mitch McConnel for attempting to use political extortion to preserve fiscally irresponsible tax breaks for the super-wealthy (Even conservative Alan Greenspan has said that Congress should let the Bush tax breaks for the super-wealthy sunset, and not renew them), describes how how the Bush administration got them passed in 2001 by bundling them with smaller tax breaks for the middle class and circumventing fiscally responsible senate rules requiring off-sets for the tax breaks in reduced spending, and argues persuasively that it is in both the Democrat’s political interests and the nation’s economic interests to take a tough stand against Republicans trying to continue this national debt-inflating redistribution of wealth to the wealthiest Americans: http://www.nytimes.com/2010/09/17/opinion/17krugman.html?_r=1&src=twt&twt=NytimesKrugman.

Why on Earth does anyone vote for Republicans anymore? Because the right’s economic disinformation campaign has successfully disguised their economic hypocricy and incompetence in the eyes of many. It’s time to relegate to the dust heap of history these worhshippers at the alter of feathering the nests of the wealthy at the expense of the middle class and of future generations, and continue to reinstate reasonable government by responsible and committed public servants.

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