Category Rothbard The Urbanist

Rothbard The Urbanist Part 7: Pricing Highways

Surprise!!  I’ve had the intent to wrap-up the Rothbard The Urbanist series for a long time, and it’s been sitting on my todo list for over 6 years. I want to thank Jeffrey Tucker, then at mises.org, and now at FEE.org and liberty.me for enthusiastically granting permission to reprint excerpts from For A New Liberty.  Murray Rothbard’s 1973 classic can be downloaded free from Mises.org as pdf, and audio book read by Jeff Riggenbach.  This chapter is also discussed by Bryan Caplan as part of an econlog book club series on For A New Liberty. It’s been a while, so you may want to catch up on the first six posts: Rothbard the Urbanist Part 1: Public Education’s Role in Sprawl and Exclusion Rothbard the Urbanist Part 2: Safe Streets Rothbard the Urbanist Part 3: Prevention of Blockades Rothbard the Urbanist Part 4: Policing Rothbard the Urbanist Part 5: Diversity and Discrimination Rothbard The Urbanist Part 6: Traffic Control We pick up in the heart of chapter 11: “The Public Sector, II: Streets and Roads” to expand on a subject core to Market Urbanism: the pricing of highways, and the consequences of a system where politics, special interests, and top-down planning have incarnated a dysfunctional system severely disconnected with bottom-up pricing signals necessary to be sustainable.  Tragically, Rothbard’s insights on these subjects have been mostly neglected for over 30 years, while apologists for sprawl and automobile dominance have nearly monopolized the conversation among free-market advocates. We begin the section with Professor Rothbard’s acknowledgement of what sprawl apologists turn a blind eye to, yet urbanists on the left are keenly aware.  Government intervention, fueled by special interests and old-fashioned progressive ideology, massively subsidized the highway system and crowded-out otherwise viable railroads.  As a result, we have an overbuilt highway system, urban neighborhoods were eviscerated, suburbs spread far-and-wide, privately […]

Urbanism without government

Asking, “But who will build the roads?” is a cliched response to proposals for a more libertarian political system. However, it leads to the interesting historical question of “Who has built the roads in anarchic societies?” Colonial America provides a few examples that answer this question. Perhaps the best known example of anarchism in American history was in Rhode Island, or “Rogue’s Island,” founded by Baptists fleeing Massachusetts. The stateless Baptists founded the cities of Portsmouth and Warwick. Unlike the Baptists, William Penn didn’t intend to create an anarchic colony, but Pennsylvania was, in fact, without a government from 1684 to 1691 as evidenced by Penn’s failure to successfully levy any taxes during that time. It’s difficult to know much about street building from this time period in part because of how much time has passed and in part because, as Murray Rothbard writes, “The lack of recordkeeping in stateless societies — since only government officials seem to have the time, energy, and resources to devote to such activities — produce a tendency toward a governmental bias in the working methods of historians.” However, we do know that Philadelphia’s neighborhoods near the Delaware River were growing during this time. One of the country’s oldest continually occupied streets is Philadelphia’s Elfreth’s Alley. It was dedicated in 1702, shortly after this period of complete anarchy and served  as a route to connect local merchants’ property with the already thriving Second Street. As the society dedicated to the alley’s preservation writes: Elfreth’s Alley — popularly known as “Our nation’s oldest residential street” – dates back to the first days of the eighteenth century. Twenty years after William Penn founded Pennsylvania and established Philadelphia as its capital, the town had grown into a thriving, prosperous mercantile center on the banks of the Delaware River. Philadelphians […]

Rothbard The Urbanist Part 6: Traffic Control

Maybe the delay in posts led you to believe the Rothbard Series was complete.  The good news is that there are a few more posts to go, and the ones coming up next should be the most interesting to urbanists. If you haven’t kept up with our discussion, Murray Rothbard’s classic For A New Liberty can be downloaded free from Mises.org as pdf, web page, and audio book read by Jeff Riggenbach, and you can read the first five posts: Rothbard the Urbanist Part 1: Public Education’s Role in Sprawl and Exclusion Rothbard the Urbanist Part 2: Safe Streets Rothbard the Urbanist Part 3: Prevention of Blockades Rothbard the Urbanist Part 4: Policing Rothbard the Urbanist Part 5: Diversity and Discrimination Not long ago, I posted a video from a friend showing one traffic intersection in Cambodia that appears to function well without any signaling.  Here are some other resources on the emergent order of traffic without signals: Econtalk podcast with Mike Munger on Cultural Norms Cafe Hayek: The arc of emergent order and Traffic without Traffic Signals. Kids Prefer Cheese:  Movie from atop the Arc Tom Vanderbilt: News for Traffic Signal Manufacturers Infrastructurist on the Dutch City of Drachten I caught some flak from a commenter who considered it “disingenuous” to present the video of the intersection as evidence “of a workable intersection.”  Of course I had to remind the commenter that I don’t consider these types of intersection something that I advocate as a “free market” solution: Don’t mistake me as an advocate of a world without traffic signals. I am quite certain that some sort of traffic signaling would likely emerge from a free-market street system. But, my bigger point is that when information is dispersed widely among decision-makers without government monopoly, sustainable solutions emerge from the […]

Rothbard the Urbanist Part 5: Diversity and Discrimination

This 5th installment of the Rothbard Series dovetails well with the most recent post on segregation by guest blogger, Stephen Smith, as well as a post back in July over at Austin Contrarian.  If you haven’t kept up with our discussion, Murray Rothbard’s classic For A New Liberty can be downloaded free from Mises.org as pdf, web page, and audio book, and you can read the first four parts: Rothbard the Urbanist Part 1: Public Education’s Role in Sprawl and Exclusion Rothbard the Urbanist Part 2: Safe Streets Rothbard the Urbanist Part 3: Prevention of Blockades Rothbard the Urbanist Part 4: Policing In the comments of the first post of this series on public education’s roll in segregation, the discussion delved into the topic of discrimination.  Bill Nelson and I shared our thoughts on discrimination by co-op boards, while another guest inquired about my statement, “elitist institutions often exclude others to their own detriment”  (Rothbard’s words further below make a similar case)  I also referred the guest to a great article on the economics of discrimination and a snippet from an article discussing how private streetcar companies fought discrimination: The Market Resists Discrimination The resistance of southern streetcar companies to ordinances requiring them to segregate black passengers vividly illustrates how the market motivates businesses to avoid unfair discrimination. Before the segregation laws were enacted, most streetcar companies voluntarily segregated tobacco users, not black people. Nonsmokers of either race were free to ride where they wished, but smokers were relegated to the rear of the car or to the outside platform. The revenue gains from pleased nonsmokers apparently outweighed any losses from disgruntled smokers. Streetcar companies refused, however, to discriminate against black people because separate cars would have reduced their profits. They resisted even after the passage of turn-of-the-century laws requiring […]

Rothbard the Urbanist Part 4: Policing

I apologize for the extended delay between posts.  Personal (newborn) and professional priorities have prevented me from having the free time I once had. Unfortunately posts will probably continue to be sporadic until things settle down a little. We are now at Part 4 in the multi-part series delving into the urbanist-friendly ideas in Murray Rothbard’s classic For a New Liberty.   (available free from Mises.org as pdf, web page, and audio book)  In case you missed them, here are the first three parts: Rothbard the Urbanist Part 1: Public Education’s Role in Sprawl and Exclusion Rothbard the Urbanist Part 2: Safe Streets Rothbard the Urbanist Part 3: Prevention of Blockades As we continue through Chapter 11 of For A New Liberty, Rothbard continues to make valid points regarding safety and policing in a fully private-landowner system.  This passage is notably interesting in its discussion of the successes of private railroads.  Whether competition in the private street market would create a vibrant marketplace similar to the early days of the railroad is an interesting topic for discussion.  I’d tend to agree with Rothbard, but of course some imagination is required to envision such a radically different society: There is of course nothing new or startling in the principle of this envisioned libertarian society. We are already familiar with the energizing effects of inter-location and inter-transportation competition. For example, when the private railroads were being built throughout the nation in the nineteenth century, the railroads and their competition provided a remarkable energizing force for developing their respective areas. Each railroad tried its best to induce immigration and economic development in its area in order to increase its profits, land values, and value of its capital; and each hastened to do so, lest people and markets leave their area and move to the […]

Rothbard the Urbanist Part 3: Prevention of Blockades

In the last post, we discussed the first paragraphs of chapter 11 of Murray Rothbard’s For A New Liberty. (available free from Mises.org as pdf, web page, and audio book) Those paragraphs discussed the private ownership of all land, including streets and roads. Rothbard clearly and concisely argues that private ownership of streets would result in safer public spaces. Discussions I have had with people often lead to the topic of forestalling, in which a sinister land owner decides to completely surround a neighbor’s property, preventing him from using it. This valid concern can be eased through a principled analysis of such a situation: At this point in the discussion, someone is bound to raise the question: If streets are owned by street companies, and granting that they generally would aim to please their customers with maximum efficiency, what if some kooky or tyrannical street owner should suddenly decide to block access to his street to an adjoining homeowner? How could the latter get in or out? Could he be blocked permanently, or be charged an enormous amount to be allowed entrance or exit? The answer to this question is the same as to a similar problem about land-ownership: Suppose that everyone owning homes surrounding someone’s property would suddenly not allow him to go in or out? The answer is that [p. 204] everyone, in purchasing homes or street service in a libertarian society, would make sure that the purchase or lease contract provides full access for whatever term of years is specified. With this sort of “easement” provided in advance by contract, no such sudden blockade would be allowed, since it would be an invasion of the property right of the landowner. A likely solution to this issue of forestalling, would be the emergence of “access insurance”. This would […]

Rothbard the Urbanist Part 2: Safe Streets

It turns out the entire Chapter 11 called “The Public Sector, II: Streets and Roads” is actually a chapter on Market Urbanism. Bryan Caplan considers this chapter "the least convincing chapter in the book", but as a Market Urbanist, I strongly disagree. I do admit that his discussion of safety and policing of private local streets involves a great deal of speculation and reliance on faith in the action of individual agents, but the insights into road subsidization and land-use patterns was decades ahead of its time. These insights may not seem so radical now, but imagine the resistance to these ideas in the days before urbanism gained much credibility.

Rothbard the Urbanist Part 1: Public Education’s Role in Sprawl and Exclusion

I’ve been meaning to address the public education system’s complex role in land use patterns, and found that Murray Rothbard does a better job in his 1973 manifesto, For a New Liberty than I ever could.  In summary, locally-funded public education is an engine of geographical segregation, which encourages flight from urban areas, and was a driving motivation for the popular acceptance of exclusionary zoning in newer suburbs.  As a result, wealth is consistently concentrated geographically, and housing affordability is at odds with these restrictions of supply intended to exclude poorer people from draining the property tax base. Here’s a paragraph from the chapter on education: The geographical nature of the public school system has also led to a coerced pattern of residential segregation, in income and consequently in race, throughout the country and particularly in the suburbs. As everyone knows, the United States since World War II has seen an expansion of population, not in the inner central cities, but in the surrounding suburban areas. As new and younger families have moved to the suburbs, by far the largest and growing burden of local budgets has been to pay for the public schools, which have to accommodate a young population with a relatively high proportion of children per capita. These schools invariably have been financed from growing property taxation, which largely falls on the suburban residences. This means that the wealthier the suburban family, and the more expensive its home, the greater will be its tax contribution for the local school. Hence, as [p. 133] the burden of school taxes increases steadily, the suburbanites try desperately to encourage an inflow of wealthy residents and expensive homes, and to discourage an inflow of poorer citizens. There is, in short, a breakeven point of the price of a house beyond which a […]