Posts tagged Sheldon Richman

Scratching By: How Government Creates Poverty as We Know It

Here’s something I found in the mail yesterday:

Here's the Table of Contents for the December 2007 Freeman, listing "Scratching By: How Government Creates Poverty As We Know It" by Charles Johnson on page 12.

Scratching By: How Government Creates Poverty as We Know It

Charles Johnson

Governments—local, state, and federal—spend a lot of time wringing their hands about the plight of the urban poor. Look around any government agency and you’ll never fail to find some know-it-all with a suit and a nameplate on his desk who has just the right government program to eliminate or ameliorate, or at least contain, the worst aspects of grinding poverty in American cities—especially as experienced by black people, immigrants, people with disabilities, and everyone else marked for the special observation and solicitude of the state bureaucracy. Depending on the bureaucrat’s frame of mind, his pet programs might focus on doling out conditional charity to deserving poor people, or putting more at-risk poor people under the surveillance of social workers and medical experts, or beating up recalcitrant poor people and locking them in cages for several years.

But the one thing that the government and its managerial aid workers will never do is just get out of the way and let poor people do the things that poor people naturally do, and always have done, to scratch by.

Government anti-poverty programs are a classic case of the therapeutic state setting out to treat disorders created by the state itself. Urban poverty as we know it is, in fact, exclusively a creature of state intervention in consensual economic dealings. This claim may seem bold, even to most libertarians. But a lot turns on the phrase “as we know it.” Even if absolute laissez faire reigned beginning tomorrow, there would still be people in big cities who are living paycheck to paycheck, heavily in debt, homeless, jobless, or otherwise at the bottom rungs of the socioeconomic ladder. These conditions may be persistent social problems, and it may be that free people in a free society will still have to come up with voluntary institutions and practices for addressing them. But in the state-regimented market that dominates today, the material predicament that poor people find themselves in—and the arrangements they must make within that predicament—are battered into their familiar shape, as if by an invisible fist, through the diffuse effects of pervasive, interlocking interventions ….

— Charles Johnson, Scratching By: How Government Creates Poverty as We Know It, in The Freeman (December 2007), 12–17.

You can read the whole thing at The Freeman’s website. Enjoy! FEE’s website doesn’t (yet) support online comments, but I’d be glad to hear what you think in the comments section over here.

While I’m on the subject, I’d like especially to thank Sheldon Richman for his encouragement and his help, and Laura Breitenbeck for her patient reading and helpful comments. The article would have been much the poorer, or more likely nonexistent, without their aid.

Further reading:

Friday Ego Blogging

Here's the cover of the December 2007 Freeman, with a photo of a homeless man sitting in a box drinking coffee. The top cover story is "Scratching By: How Government Creates Poverty As We Know It" by Charles Johnson.

Coming soon; keep an eye out. For a partial preview of some of the themes I’ll be touching on in my article, see GT 2007-11-16: Urban homesteading and GT 2007-09-15: Free Riders.

(Thanks to Sheldon Richman 2007-12-14.)

On the dole

On the LeftLibertarian2 listserv, there’s been some discussion of a pseudo-libertarian argument that’s popular with certain border creeps, to the effect that the government should strictly limit immigration because otherwise too many immigrants, especially undocumented immigrants who often work off the books and don’t pay income tax, will show up to mooch off of hard-working Estadounidenses through the welfare state. This argument has a lot of problems, some of which I’ve discussed before (1, 2). For one thing, it’s empirically bogus. By law, even officially approved immigrants are ineligible for most federal welfare benefits, while local government-funded services that immigrants can avail themselves of, such as E.R. care, government police and firefighters, government schools, government roads, etc. are mainly funded out of state or local taxes that immigrants do pay, whether or not they file with the IRS — sales taxes, excise taxes, gasoline taxes, property taxes, etc. Perhaps more importantly, as Sheldon Richman and Niccolò Adami pointed out on the list, the argument persists among vulgar libertarians and small-government conservative types for reasons that have nothing really to do with libertarian principle. As Niccolò said:

The use of the welfare argument, as I can see it is limited to use against other libertarians—like ourselves—who would otherwise look a little less kindly to the welfare state.

The truth is, however, that if you watch the Bill O’Reilly’s of the world, they’re all complaining about the lack of Americaness of the immigrants, not really about the tax evasion or the welfare.

As I mentioned on the list, the tax evasion argument ought to be a complete non-starter with genuine libertarians. The fact that many independent migrants don’t pay taxes to support Leviathan is a point in their favor, not a point against them. As for the welfare state, they are welcome to milk it dry, as far as I’m concerned. The sooner the damn thing is on the brink of collapse, the better. Besides which, receipt of government benefits is not ipso facto a violation of anyone’s rights — it’s the funding that’s the problem, but illegal immigrants aren’t complicit in the existence of taxation — and insofar as they are able to receive some minimal pay-outs from the State, that may as well count as partial restitution for the daily threats, terror, and violence that the state and federal governments routinely inflict against the property and liberty of all undocumented immigrants.

For what it’s worth, I think that the focus on welfare is not actually quite as opportunistic as Niccolò claims it is. I suspect that it has less to do with rhetorical outreach to small-government types, and more to do with a felt emotional need to believe that immigrants are really a bunch of ungrateful layabouts. It’s the same basic racist dynamic that’s in play in the equivalent discussions by post-Jim Crow white conservatives about domestic welfare recipients.

Urban homesteading

So, I have an essay coming up in next month’s Freeman (thanks to the encouragement and editorial efforts of the indefatigable Sheldon Richman). It’s called Scratching By, and the theme is to explain how it’s not the free market, but rather the State, in its role as the invisible fist of corporate capitalism, that creates the material predicament faced by poor folks in American cities. One of the topics that I touched on there, and which I mentioned before in my comments on the South Central Farmers, is government control and planning of inner-city land use. Government regimentation of land squeezes poor people economically; perhaps more importantly, it also keeps them permanently in hock to, and at the mercy of, a select handful of politically-connected developers and slumlords. Last week, Women of Color Blog (2007-11-09) alerted me to the latest example: HUD’s continuing refusal to let New Orleans public housing residents return to their old homes, even two years after the fact. All for their own good, of course, whether or not they happen to think that they are best off living as permanent refugees. The plan is to begin demolishing the homes, now forcibly kept vacant, in order to make room for government redistribution of the land to connected developers for the usual urban renewal projects.

A major human rights crisis exists in New Orleans and the Gulf Coast. It is a crisis that denies the basic rights to life, equality under the law, and social equity to Black, Indigenous, migrant, and working class communities in the region. While this crisis was in existence long before Hurricane Katrina, the policies and actions of the US government and finance capital (i.e. banking, credit, insurance, and development industries) following the Hurricane have seriously exacerbated the crisis.

One of the clearest examples of this crisis is the denial of the right to housing in New Orleans, particularly in the public housing sector. Since the Hurricane, the US government through the Department of Housing and Urban Development (HUD) has denied the vast majority of the residents of public housing the right to return to their homes. Unlike the vast majority of the housing stock in New Orleans, the majority of the public housing units received little to no flood or wind damage from the Hurricane. Yet, as of October 2007 only ¼ of the public housing units have been reopened and reoccupied. The Bush government refuses to reopen the public housing units in New Orleans because it appears intent on destroying the public housing system, demolishing the existing structures, and turning over the properties to private real-estate developers to make profits.

Based on the discriminatory Federal Court ruling issued on Monday, September 10th, all of the major public housing units in New Orleans are now subject to immediate demolition (the latest report from Monday, November 5th is that HUD will attempt to start the demolition on Monday, November 19th. However, this is being challenged by various legal advocates and will be delayed until at least Wednesday, November 28th pending a Federal court hearing). The first site on the schedule for demolition is the Lafitte housing project.

— My Private Casbah 2007-11-09: All Public Housing Units In New Orleans Set To Be Demolished

Now, I’m an anarchist. As such, I’m also intent — far more intent than George W. Bush could ever dream to be — on destroying the so-called public housing system. I hope to destroy it right along with the rest of the statist system of regimentation, rationing, command and control. But, the Department of Bulldozers’ opinions notwithstanding, destroying the system of control is not the same thing as knocking over the homes that the government controls. The hope is to liberate them and allow people to reclaim their lives from the domination of the State and the exploitation of state capitalism.

As far as these particular public housing units are concerned, the proper question to ask is, who rightfully owns the homes that are set to be demolished? In the eyes of the State legal system, that’s the Housing Authority of New Orleans, a quasi-governmental non-profit corporation substantially under the control of its patron, the federal government’s Department of Housing and Urban Development. But neither HANO nor any other creature of the State can be the rightful owner of this or any other property. States are nothing more than massive criminal enterprises; they have no land and no money except what they expropriate from others by force. Their claim to the Lafitte housing project, like all their other claims, is fraudulent, because piracy is not a legitimate means for acquiring title to anything.

So if not HANO, who are the rightful owners? Well, when property has been lost or abandoned, it rightfully belongs to those who find it and put it to use. In the case of New Orleans and its government housing projects, that means that the people who should rightfully be regarded as the owners are not HUD or HANO bureaucrats, but rather the current tenants. Each resident has gained a legitimate ownership interest in her home, and in the land that it is built on, in virtue of occupying and homesteading it. Radical libertarians should recognize, on free market principles, that the federal government’s interventionist efforts to lock poor people out of their own homes and pass the land along to the nearest professional slumlord for development should be regarded as nothing more or less than State-sponsored theft. Specifically, State-sponsored theft in the name of propping up the political-economic class system of landlordism.

The radical implications of the homesteading principle for urban housing extend far beyond New Orleans. In pretty much every major American city, there is a more or less permanent supply of vacant lots, burned-out plants, condemned buildings, and other land which has been held out of use for years, and will continue to be held out of use for years to come. Part of the reason that so much land remains idle is that formal title has often been seized by the city government or by quasi-governmental development corporations, through the use of eminent domain, and the lots are simply abandoned while they await government public works projects or developers willing to buy up the land for large-scale building. In a free market, vacant lots and abandoned buildings should be available for homesteading by anyone willing to do the work of occupying and using them — which emphatically includes poor people in search of housing, a place to set up shop, land to cultivate for food, or for whatever other use they can put it to. It is only government intervention on behalf of state capitalism that keeps these lots shuttered and keeps them locked up in the hands of government bureaucrats and real estate developers; without statism there would be no political process of expropriation, demolition, redistribution, and redevelopment. Free people would be able to establish property rights in abandoned land, and thus provide their own housing, free of landlords and bulldozers, through their own sweat equity.

It’s because of this that I’ve been following the Take Back the Land movement in Miami with a lot of interest and a lot of sympathy. Their first project, the Umoja Village shanty-town (1, 2), was as good an example as you could like of socializing the land through direct action. And now, Max Rameau writes that their new project is to Take Back the Housing:

October 23, 2007 marks one year since the rise of the Umoja Village Shantytown in the Liberty City section of Miami in response to the crisis of gentrification and low income housing. In the year since this “people power” action, much has changed and much more remains the same. Black and other poor communities are ravaged by the crisis of gentrification and low-income housing while the same government which extracts taxes from us, does nothing to alleviate the crisis. One year later, the issue of community control over land remains fundamental in solving the crisis.

As the real estate bubble explodes around us, vacant foreclosed homes litter our communities and speculators choose to hold onto vacant houses and apartments, waiting for the next market swing in order to make their millions. For it’s part, in spite of all the scandal and crisis, Miami-Dade County doggedly maintains an unconscionable and immoral stockpile of vacant public housing units, units which otherwise would shelter some of the 41,000 families languishing on the housing assistance waiting list.

All the while, the homeless population grows, particularly among the under-housed, those not living on the street, but doubling and tripling up in single family homes, including public housing, where the extra families live illegally, endangering the housing security of the entire extended family, sometimes right next door to a boarded up, vacant unit.

We are forced to conclude that Miami-Dade County intentionally leaves units vacant, or tears down public housing all together—exemplified by the HOPE VI funded Scott-Carver public housing project demolition—as a means of fueling the real estate boom. When governments take units of low-income housing off of the market, the value of the remaining privately held units increases, as families scramble to find new living arrangements. This is nothing short of tax financed market manipulation, designed to decrease supply at a time when demand is sky high, resulting in a government sponsored—not market driven—real estate boom.

… In spite of the crisis, scandal and controversy, the reality is that local governments continue to enrich wealthy developers and have intentionally failed to address this crisis in any meaningful way. Neither Miami-Dade County nor the federal government operates based on the interests of poor Black people. As such, we are left with no other option than to provide for the people for whom the government is not providing.

Take Back the Land, again, asserts the right of the Black community to control land in the Black community. In order to provide housing for people, not for profit, this community control over land must now take the form of direct community control over housing.

Consequently, Take Back the Land has initiated the process of moving families and individuals into vacant housing, whether public, foreclosed upon or privately owned and intentionally vacated.

As of this writing, several families have already been moved into housing and several more are desperately awaiting their turn. We will move families and individuals into vacant housing units all across Miami-Dade County.

— Take Back the Land 2007-10-24: Take Back the Housing

A true free market requires an end to what Benjamin Tucker rightly condemned as the land monopoly, and a radical application of the homestead principle, which means that an awful lot of squatter’s rights can and should be recognized as the basis of a just claim to the land. While I disagree with Tucker on some of the specifics of rightful land ownership — for example, I don’t think that rental contracts necessarily constitute abandonment of land — I do agree that absentee landlordism is artificially propped up by a pervasive and unjust system of government intervention on behalf of the rentier class. Abandoned land rightfully belongs to those who can reclaim it through occupancy and use. So three cheers from this libertarian to Take Back the Land, and here’s hoping that counter-economic urban homesteading will spread — throughout Miami, onward to New Orleans, and throughout every housing market currently clutched in the talons of land monopoly and state capitalism.

Further reading:

May Day 2007

We Have Fed You All for a Thousand Years

We have fed you all for a thousand years,
And you hail us still unfed,
Though there’s never a dollar of all your wealth
But marks the workers dead.
We have yielded our best to give you rest,
And you lie on crimson wool;
But if blood be the price of all your wealth
Good God we have paid in full.

There is never a mine blown skyward now
But we’re buried alive for you;
There’s never a wreck drifts shoreward now
But we are its ghastly crew.
Go and reckon our dead by the forges red,
And the factories where we spin;
If blood be the price of your cursèd wealth
Good God we have paid it in.

We have fed you all for a thousand years—
For that was our doom, you know,
From the days when you chained us in your fields
To the strike a week ago.
You have taken our lives, and our husbands and wives,
And called it your legal share;
But if blood be the price of your lawful wealth
Good God we bought it fair.

—First printed by the Industrial Workers of the World in 1908. Words by an anonymous proletarian, tune by Rudolph von Leibich

Fellow workers:

Today is May Day, or International Workers Day, a holiday created by Chicago workers—most of them anarchists—to honor the memory of the Haymarket martyrs and to celebrate the struggle of workers for freedom, a better life, and determination of the conditions of their own labor. It’s also the second annual day of strikes and marches for immigrant workers’ rights. May Day is and ought to be a day of resistance against the arrogance and power of the plutocrats. A day to celebrate workers’ struggles for dignity, and for freedom, through organizing in their own self-interest, through agitating and exhorting for solidarity, and through free acts of worker-led direct action to achieve their goals, marching under the banners of We are all leaders here and Dump the bosses off your back . A day to cheer immigrant workers struggling for their own freedom, in defiance of the attempts by La Migra and freelance nativist bullies to silence and intimidate them, marching under the banners We are not criminals, and We are not going anywhere. A day to remember:

There Is Power In A Union

There is power, there is power,
In a band of working folk,
When we stand
Hand in hand.

—Joe Hill (1913)

In honor of the day, it’s a pleasure to recommend some reading from anti-state radicals—from a history of May Day’s American roots at The Agitator (Lauritz, not Balko), to Kevin Carson’s Organized Capital vs. Organized Labor, to Sheldon Richman’s column Labor’s Right to a Free Market. And I’d especially like to recommend Kevin’s simply brilliant earlier column, The Ethics of Labor Struggle: A Free Market Perspective. Kevin’s and Sheldon’s columns do an especially good job of showing the gulf between the managerial style of establishmentarian business unionism—so familiar to us in these the waning days of Babylon, with Wagner and Taft-Hartley carefully arranged to bring the established unions into the web of State privilege and State regulation—with the older, state-free tradition of wildcat unionism that May Day celebrates. Here’s Kevin Carson:

First of all, when the strike was chosen as a weapon, it relied more on the threat of imposing costs on the employer than on the forcible exclusion of scabs. You wouldn’t think it so hard for the Misoids to understand that the replacement of a major portion of the workforce, especially when the supply of replacement workers is limited by moral sympathy with the strike, might entail considerable transaction costs and disruption of production. The idiosyncratic knowledge of the existing workforce, the time and cost of bringing replacement workers to an equivalent level of productivity, and the damage short-term disruption of production may do to customer relations, together constitute a rent that invests the threat of walking out with a considerable deterrent value. And the cost and disruption is greatly intensified when the strike is backed by sympathy strikes at other stages of production. Wagner and Taft-Hartley greatly reduced the effectiveness of strikes at individual plants by transforming them into declared wars fought by Queensbury rules, and likewise reduced their effectiveness by prohibiting the coordination of actions across multiple plants or industries. Taft-Hartley’s cooling off periods, in addition, gave employers time to prepare ahead of time for such disruptions and greatly reduced the informational rents embodied in the training of the existing workforce. Were not such restrictions in place, today’s “just-in-time” economy would likely be far more vulnerable to such disruption than that of the 1930s.

More importantly, though, unionism was historically less about strikes or excluding non-union workers from the workplace than about what workers did inside the workplace to strengthen their bargaining power against the boss.

The Wagner Act, along with the rest of the corporate liberal legal regime, had as its central goal the redirection of labor resistance away from the successful asymmetric warfare model, toward a formalized, bureaucratic system centered on labor contracts enforced by the state and the union hierarchies.

It’s time to take up Sweeney’s half-hearted suggestion, not just as a throwaway line, but as a challenge to the bosses. We’ll gladly forego legal protections against punitive firing of union organizers, and federal certification of unions, if you’ll forego the court injunctions and cooling-off periods and arbitration. We’ll leave you free to fire organizers at will, to bring back the yellow dog contract, if you leave us free to engage in sympathy and boycott strikes all the way up and down the production chain, boycott retailers, and strike against the hauling of scab cargo, etc., effectively turning every strike into a general strike. We give up Wagner (such as it is), and you give up Taft-Hartley and the Railway Labor Relations Act. And then we’ll mop the floor with your ass.

— Kevin Carson, The Ethics of Labor Struggle: A Free Market Perspective

That’s just a sampling. You really must read the whole thing.



Meanwhile, in the news, some creep in Washington is wandering around proclaiming Loyalty Day and demanding our renewed allegiance; and while the punch-drunk official unions are begging the government for more favors, the captains of industry are begging the government to keep a tight leash on free association. But the most significant events for labor and for human freedom are happening beyond the noise and spectacle of that gladiatorial arena, in the streets of cities all over the country where workers demand their rights in defiance of the so-called immigration law, and in unrecognized, grassroots unions organized along syndicalist lines, where workers have won concrete gains from the biggest corporations in their industry by operating through the use of creative secondary boycotts. There is a lesson here—a lesson for workers, for organizers, for agitators, and anti-statists. One we’d do well to remember when confronted by any of the bosses—whether corporate bosses or political, the labor fakirs and the authoritarian thugs styling themselves the vanguard of the working class, the regulators and the deporters and the patronizing friends of labor all:

Dump the Bosses Off Your Back

Are you cold, forelorn, and hungry?
Are there lots of things you lack?
Is your life made up of misery?
Then dump the bosses off your back!

—John Brill (1916)

Further reading: