Some Ground Rules for the Minimum Wage debate

My latest article for Turning Point USA. I suggest some aspects of the debate that just need to go away. Your thoughts?


Could Zoning Laws Affect Political Outcomes and Marriage Rates?

From a Nathan Smith post on windfalls in land value from immigration (which I recommend), I found an interesting paper by George Hawley entitled “Home affordability, female marriage rates and vote choice in the 2000 US presidential election: Evidence from US counties”. Abstract:

This article tests the hypothesis that differences in the housing market can partially explain why some American counties are strongly Republican and others strongly Democratic, and that this phenomenon can be largely attributed to the relationship between home values and marriage rates within counties. Specifically, I test the hypothesis that, in the 2000 election, George W. Bush did comparatively better in counties with relatively affordable single-family homes, even when controlling for other economic, demographic and regional variables. Using county-level data, I test this hypothesis using spatial-lag regression models, and provide further evidence using individual-level survey data. My results indicate a statistically significant relationship between Bush’s percentage of the vote at the county level and the median value of owner-occupied homes, and that at least part of this is explained by the relationship between home values and marriage rates among young women.

The author finds that a $10,000 decrease in the median home price yielded an additional 0.3 percentage points for Bush in the 2000 election (so, a 0.6 point swing per $10,000). Although I have not reviewed the paper enough to determine whether I agree with its conclusion, it is at least interesting.

Given that zoning is often considered a factor in higher housing costs (see, for instance, Glaeser and Gyourko 2002), I wonder if restrictive zoning laws could have the impact of lowering marriage rates and making voters more leftist. Housing cost wedges can be quite large (in the hundreds of thousands of dollars sometimes), so the impact could be sizable. The difference between median owner-occupied housing prices in California and Texas, for instance, is $295,200 ($421,600 – $126,400). If California’s housing prices fell to those of Texas and the effect identified in the paper took place over time, there could be a 17.7 point swing in presidential elections in the favor of the Republican candidate (0.6 times 29.52)! Rough extrapolations are what they are, and certainly not all of the housing price gap is due to zoning, but the effect could be large.

Some types of zoning encourage rather than discourage sprawl (such as free parking mandates), and eliminating those might have contrary effects if they induce more people to live in cities. Nevertheless, zoning could still be a significant factor in political outcomes.

Empirical Problems with the Hobbesian Account

In two recent posts, my co-blogger Michael Tontchev has been criticizing some of the theoretical underpinnings of Hobbes’ “state of nature”. I would also note the empirical evidence against the notion that property and organization is impossible without a centralized State.

In “The First Property Rights Revolution”, Samuel Bowles and Jung-Kyoo Choi claim that individual property rights emerged thousands of years before States did (p. 1):
Hobbes’ state of nature is a valuable thought experiment, but taken as history (which Hobbes did not) it is deficient…. First, individually-held property rights in land, its produce, and other sources of people’s livelihood emerged with the domestication of plants and animals starting around 11,000 years ago, while in most cases states developed many millennia afterwards. Recognizably modern property rights existed in these newly agrarian societies without the assistance of states. Among fishing people and other sedentary foragers, individual or family-based property rights appear to have existed even before the advent of domestication.

They continue, describing the alternative mechanisms usually employed to secure property rights by pre-State humans (p. 1-2):

The second historical shortcoming of the Hobbesian account is that it is quite unlikely
that Hobbes’ state of nature ever existed. For most of our history as biologically modern humans – roughly the 100,000 years prior to the advent of agriculture – social interactions were organized without the aid of institutions even remotely resembling contemporary states or private property in land or the other sources of people’s livelihoods. They apparently did not, however, suffer the chaos of the Hobbesean [sic] state of nature. Rather, in all likelihood, beginning as early as 100,000 years ago in Africa and later in other parts of the world, these groups were organized in a manner similar to a subset of the modern mobile hunter-gatherers described in historical and ethnographic accounts, their lives regulated by social norms enforced by collective punishment of miscreants.
Indeed, much of the motivation for recognizing property norms is likely genetic, as Jeffrey Evans Stake argues in “The Property ‘Instinct’ “:
Evolutionary theory and empirical studies suggest that many animals, including humans, have a genetic predisposition to acquire and retain property. This is hardly surprising because survival is closely bound up with the acquisition of things: food, shelter, tools and territory. But the root of these general urges may also run to quite specific and detailed rules about property acquisition, retention and disposition. The great variation in property-related behaviours across species may mask some important commonalities grounded in adaptive utility. Experiments and observations in the field and laboratory suggest that the legal rules of temporal priority and possession are grounded in what were evolutionarily stable strategies in the ancestral environment. Moreover, the preferences that humans exhibit in disposing of their property on their deaths, both by dispositions made in wills and by the laws of intestacy, tend to advance reproductive success as a result of inclusive fitness pay-offs.
Of course, evolutionary behaviors also guide the State’s legal rules, but it is still significant that humans (and other species, for that matter) possess instincts leading them to behave with greater ingrained respect for property ownership than Hobbes might suppose they would.
On a similar note to Stake’s arguments, Bryan Caplan discusses Herbert Gintis’ “The Evolution of Private Property”, and notes that black markets are a significant example of property rights existing not only without government enforcement, but with active government opposition.
Finally, it is worth noting that Bowles is a neo-Marxian, and Gintis has Marxist leanings. One need not be a classical liberal to observe problems with the usefulness of Hobbes’ model in the real world.