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Does Georgism work? Five years later

514 points · 522 comments · silveraxe93

  1. tptacek · · focus · HN ↗
    I’ve since learned that overly online keyboard warriors are the least important people to convince. The most important people are on your local city council or state legislature. Furthermore, instead of wasting time with hard cases or elected officials who are dead-set against your ideas, you’re much better off finding and working with people who are already interested in your principles. This often means giving up on your own city or state, at least for the time being, and pursuing a “succeed anywhere” strategy instead.

    We're about to have a board vote eliminating single-family zoning (I expect us to win) and this rings extremely true about local politics. If you count "votes" in Facebook comments --- Facebook is where all our local politics happen --- you'd think this is the most contentious issue in the world. But in our last mayoral election, you'd draw the same conclusion about the race being tight, and in fact the progressive rinsed the moderate by a huge margin.

    The same thing is very true of public meetings; the turnout for comment at those things is almost never representative of the area's median sentiment. "No" turns out for everything; "yes" rarely does.

    I spend a lot of time in online arguments with opponents, on the theory that I'm not really writing to the person I'm arguing with but rather to everyone quietly reading comments. But it's almost certainly the case that the only conversations that have really mattered have been with electeds themselves.

    1. noduerme · · focus · HN ↗
      I haven't read anything about Georgism that would specifically argue for or against single-family zoning. I own a single-family house, I already pay high property taxes, and I pay high income taxes. I think it would be more fair to me and everyone else to drop both, and tax the land my house is on, even if that came out to the same amount of tax I paid per year. If that tax was used to provide a UBI to people who don't own land, great. And I'm fairly conservative. I don't think this aligns as a modern progressive or conservative issue.

      That all being said, I find expropriation to be loathsome, and I think the movement to destroy single-family zoned neighborhoods is a species of evil that borders on satanic.

      1. jakintosh · · focus · HN ↗
        the movement against SFH zoning is not about destroying single family zoned neighborhoods, it’s about not forcing every lot to require a SFH. i’m not sure how your comment on expropriation was meant to read, but SFH zoning itself is more of a taking. people who want to live in a single-family-only neighborhood should find a spot on the edge of town where development pressure is low, not weaponize land use regulations to make it illegal to build what the market wants near jobs and amenities.

        and while an LVT doesn’t really care about zoning, depending on how close to a city center your SFH is, a well calibrated LVT might dramatically increase your overall tax burden even if you dropped all other taxes. SFH zoning is manufactured scarcity; LVT prices scarcity correctly, and there’s no upper bound on that value, especially since land taxes become divorced from income.

        1. noduerme · · focus · HN ↗
          >> i’m not sure how your comment on expropriation was meant to read

          I should have clarified that. I meant it in the context of Georgism. The concept of Georgism was manifestly against the government actually redistributing owned land; instead, landlords would divest themselves of the land if the only utility they got from it was rent. What Georgism says you're paying for when you pay LVT on the land you own is the exclusive right to private use of that land, which comes at the expense of everyone else who doesn't "own" (or essentially, lease) the right to live on it or build on it.

          Georgism distinguished between ownership by individuals for productive use and ownership by either (a) individuals for rent-seeking or (b) governments as stewards.

          You may be right about LVT pricing scarcity where I live winding up higher than my current tax basis, but even that would make sense since I have to earn a lot and therefore pay inordinate income tax to have the ability to live in a single family home near to a city center already. If where I lived were less important to me, under Georgism, I could simply move to the burbs. But there is a funny corrolary to that which Georgism seems to intuitively grasp and which is orthogonal to the argument between manufactured scarcity and progressive housing policies. (And maybe this is a gap in Georgism's argument):

          I live in inner southeast Portland, Oregon. Along all our east-west avenues there are tons of Amazon boxes (what we call studio / one bedroom 4-6 story cheaply constructed wooden apartments with a patina of modern amenity). And tons of local businesses. Between the major arteries it's almost all single family homes. This makes it one of the last cities in America where you can live in a SFH within walking distance of everything, including downtown. Street parking is still free here, and a lot of people don't need a car at all. I live in an SFH within two blocks of apartments where the waiters and bartenders and shopkeepers live who work at the businesses on the avenues. It's truly mixed use. However, they've now rewritten the zoning law to allow tearing down houses as small as mine (1200 sqft) and replacing them with 4-plexes. The problem with the Amazon boxes is that they don't provide room for families. No one is building 3 bedroom apartments with a yard where you can raise your kids in the city. My Dad grew up in a shared row house in Baltimore. No one's building that.

          Which gets to the heart of the matter, which is that a major reason that this city and this area are so desirable is precisely because those SFHs exist between all the major streets. The spending value (and social value) of the essentially middle class people who are willing to buy a house where they don't need a car and want to raise their family in the city center is widely overlooked by people campaigning to eliminate SFH zoning; but without those people, you end up with neighborhoods where everyone is under 30 and relatively transient, without much money to spend in the local economy or any deep ties to the place. The apartments decay, and most of the work reasons for living there disappear.

          Eliminating SFH zoning is an opinionated, political form of slow redistribution that preferences a certain age group and a certain socioenconomic position over others. It reduces actual diversity, and produces monocultural places like Seattle and Santa Monica where only the very rich can raise a family in town, and everyone else is a young renter.

          And here's the kicker where Georgism may be right: In the end, eliminating SFH zoning only redistributes property from individuals and families (like me) to corporate landlords.

          1. amluto · · focus · HN ↗
            This comment makes me wonder: is the actual issue perhaps not so much the single part of SFH but the family part?

            I can imagine a sensible zoning rule requiring an appropriate fraction of housing units to have 2+ bedrooms and another fraction to have 3+. (There is no particular reason that a multi bedroom unit needs to house a family. Plenty of 20-somethings are happy to have housemates.)

            Due in part to suboptimal fire codes, the US has trouble building nice multi-unit buildings with 2+-bedroom units. Other countries manage just fine.

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