This winter, I’m a visiting scholar at the University of Texas. Though Austin is gorgeous, visitors can’t help but notice vast homeless villages scattered throughout the city. Local sources tell me that this is driven by Austin’s repeal of the ban on homeless camping. One of the economists I’ve met here has written a Swiftian proposal for reforming Austin’s approach. The author prefers to remain anonymous, but this is printed with his permission. Engage your sense of satire, and enjoy!
By using a signature sampling technique, the city of Austin kept the initiative to reinstate Austin’s camping ban off the November ballot. As such, it is a good time to evaluate who exactly benefits and who pays the costs of the repeal of the camping ban. The city would not have prevented the issue from being on the ballot if they were confident that the people of Austin would support continued homeless camping, so there seems to be some constituency for reimposing the ban, while the aggressive efforts by the city to promote homeless camping suggests the existence of a powerful constituency in favor of such camping.
Fortunately, it is relatively easy to see who bears the costs and who reaps the benefits of the camping ban repeal. Traveling around Austin, it is quite clear that much of the new camping takes place under highway overpasses and on highway right of ways. This information is very valuable in understanding who benefits and who pays for the camping policy. Highways are a classic “disamenity” in urban economics; people will pay to avoid living near highways due to increased noise, traffic, and pollution. The equilibrium implication of this fact is that neighborhoods near highways tend to be poorer. This situation is not necessarily something to be concerned about. Any growing, dynamic economy will reward different skills differently, and the fact that those with fewer resources choose to save money on housing by living in less desirable neighborhoods is somewhat inevitable.
This logic, however, does not justify policies that make such neighborhoods worse; at that point, the city government is changing the rules and in effect expropriating wealth, in the form of home values and unpriced amenities like safety, from lower income Austinites. Where, then, is this transfer going? One could argue that the benefits of the policy accrue toward the homeless themselves, but this conclusion is not clear. While economists tend to view increasing the available choices to individuals as improving their welfare, there may be an exception for those caught in the depths of mental illness and substance abuse. In any case, the idea that the homeless have sufficient political clout to enact such radical policies strains credulity.
Thus, there must be another constituency that values homeless camping and has enough influence to get such policies passed. Again, the recent history of the ballot initiative is informative. The political, social, and academic elite of Austin is the primary relevant constituency for permitting homeless camping, and they receive the most unambiguous benefits of the policy through smug self-satisfaction while bearing none of the costs. True, these total benefits are dwarfed by the costs to those living in lower income areas, but the relative political power of the two groups leads to the policy being enacted despite the costs outweighing the benefits. The camping ban repeal is thus both inefficient and regressive; the overall benefits are small relative to the costs, and the benefits accrue to the wealthy while the costs are borne by the poor.
What, then, to do about the inequities generated by the removal of the homeless camping ban? The first thing to note is that appeals to local government are useless; it is exactly those running the local government, formally and informally, who benefited most from the camping policy change. Thus, we must appeal to authorities above the local level. Fortunately, the State of Texas has at its disposal multiple tools that can lead to a more equitable outcome and that, crucially, can make sure that those receiving benefits from the policy are the ones paying the costs. We can even achieve this without appreciably changing the opportunities available for homeless camping. The state has significant authority, separate from local authorities, over both highway right-of-ways and the University of Texas campus. The Governor should immediately instruct the Department of Public Safety to clear out all campsites from highway right-of-ways while at the same time prohibiting the University from enforcing any prohibitions on camping, loitering, or solicitation. Transportation of persons and property from the right-of-ways to campus could be provided free of charge.
This policy might lead to some disruptions on campus, but it would be no worse than the disruptions faced by lower income Austinites who find such camps popping up near their homes and places of work. And, certainly, faculty at UT are at the pinnacle of the social elite in Austin and among the strongest supporters of the repeal of the ban. They benefit the most, and they should pay the costs. It would be admittedly jarring to see faculty harassed and threatened on their way to teach classes, but faculty themselves have enthusiastically supported policies that have imposed such harassment and threatening behavior on less privileged Austinites, as is well documented in the viral video circulating regarding the Windsor Park neighborhood. Surely “marginalized” working class individuals who provide important services to our economy deserve to have at least the same level of safety and security as those who write about the tribulations of the marginalized classes from the comfort of their own offices.
Perhaps one would counter this argument by pointing out that faculty tend to earn higher incomes and live in more expensive housing than the working class, thus paying more in taxes to the city and thus deserving greater protection. But, this argument breaks down; the academic elite lives largely off of taxpayer money, either directly through state funding of the university or indirectly through the funding of general university operations through “overhead” charges against federal grants. How much of this government funding eventually ends up getting passed on to the local government in the form of taxes should not really play a role in determining who deserves the most protection by the local government. The logic might be different when comparing high income productive workers with low income productive workers, but when comparing low income productive workers to high income “workers” with heavily subsidized lifetime sinecures we can hardly conclude that higher incomes warrant greater public services.
READER COMMENTS
Loquitur Veritatem
Dec 22 2020 at 11:36am
As a resident of Austin who chafes under its “liberal” governance and despises its leftist elites, I wholeheartedly endorse your modest proposal.
Charlie
Dec 22 2020 at 12:33pm
It is truly so inconceivable that both the homeless benefit from their existence not being criminalized, and reasonable people find that a compelling enough reason to support this measure? Just because the beneficiaries lack political clout does not invalidate their benefit.
A modest comparison: Why are children forced to attend school? One could argue that the benefits of the policy accrue toward the children themselves, but this conclusion is not clear. While economists tend to view increasing the available choices to individuals as improving their welfare, there may be an exception for those caught in the depths of childhood. In any case, the idea that children have sufficient political clout to enact such radical policies strains credulity.
Thus, there must be another constituency that values childhood education and has enough influence to get such policies passed. Again, the recent history of the ballot initiative is informative. The political, social, and academic elite of Austin is the primary relevant constituency for advocating for universal public education, and they receive the most unambiguous benefits of the policy through smug self-satisfaction while bearing none of the costs.
IronSig
Dec 28 2020 at 11:49am
The broad point of Bryan’s first book, “Myth of the Rational Voter,” is that there’s many policies that appeal to voters that empirically squelch productivity and living with liberty. Nevertheless, voters will delude themselves and reward politicians who shoot society in the toes – proven by popular talking points and reelections.
You can look elsewhere for the contrast between this hypothesis and the basic Public Choice hypothesis, but you are on to something by pointing out that the homeless benefit from the leashed camping ban.
AMT
Dec 22 2020 at 12:45pm
Could this person provide ANY substantive evidence in support of these premises? I’m having trouble imagining any plausible rationale for how the homeless are not any better off.
D
Dec 22 2020 at 4:44pm
The author has skipped rather lightly by that part. The thirsty-ness for left hypocrisy is rather comical around these parts.
KevinDC
Dec 22 2020 at 6:04pm
When a work explicitly begins with the injunction to “Engage your sense of satire” and upon reading it your response is ask about being provided with “substantive evidence in support of these premises,” consider the possibility that you might be missing something.
AMT
Dec 22 2020 at 8:10pm
When the “humor” hinges on completely false premises, not merely exaggerated, it’s not funny. Unless we are laughing at the author rather than with them. I think Swift’s satire is funny, but this is just isn’t. It’s basically just “screw those professors” without any actual humor.
KevinDC
Dec 23 2020 at 7:14am
That may be your opinion. As for me, I would say that when a person insists that an intrinsically subjective concept like humor only counts as being humorous if it meets their specified criteria of objective factors, they seem prone to conflating their opinions with reality.
“I didn’t find it funny” is not the same as “it isn’t funny.” The first is just describing your personal reaction. The second is treating your personal reactions as though it was an objective statement of fact about the world – and humor is not objective. I, for one, have had no difficulty finding humor and laughing at jokes, satire, or writing that had premises ranging from perfectly true to exaggerated to utter nonsense. If your ability to find humor in things is more limited than that, well, I think that’s a shame, because I love to laugh. But, such is life.
AMT
Dec 23 2020 at 12:53pm
Wow, you really are proud of your special ability to find things funny. I’m so in awe of you!
KevinDC
Dec 23 2020 at 4:13pm
I appreciate the adulation, but I don’t think this is such a unique trait of mine. Most people understand the subjective nature of humor and are able to appreciate it without requiring that premises be tied to reality.
D
Dec 22 2020 at 4:42pm
Sure, a lot of the people supporting repeal of the camping ban might think differently if the camp was on their street. So might the author if he was homeless…. what’s the difference?
Phil H
Dec 22 2020 at 9:38pm
What’s comical to me is that one of the phrases the right loves to apply to left wingers is “resentment”. Pieces like this, dripping with anger and jealousy, make it clear once again how much projection is involved in that particular piece of political rhetoric.
Of course the tone of the piece has no bearing on its substantive merits. I can’t judge those. But the author didn’t make any attempt to quantify any of the utilities or disutilities, so it hardly counts as a piece of economics. Just some bitter political ranting.
Alexander Turok
Dec 23 2020 at 7:53pm
Funny, I wasn’t aware the word “resentment” was more often used by conservatives than by liberals. I think this may be an instance of that “projection” you keep talking about.
Not that I deny it or anything. You can call it “anger and jealousy” all you want. I call it telling people to practice what they preach.
IronSig
Dec 28 2020 at 12:10pm
The word is used frequently by Nietzsche as he wonders what kind of person democracy will incentivize now that God is Dead, and We have Killed Him. He used the French version “ressentiment” to refer to a sort of Iago- “Some Men Just Want to Watch the World Burn” mentality. He uses a phrase to describe sore losers in Daybreak that usually translates to “May the whole world perish!” However, Nietzsche’s point is that attitude isn’t new to most cultures, but that we should be worried about its expression today (and the today these decades after his death).
Consider #81 on this list:https://www.stephenhicks.org/2020/06/27/nietzsche-and-rand-124-similarities-and-differences/
Eliezer Yudkowsky
Dec 23 2020 at 1:39am
I’m a bit confused by where the sympathy is being directed, or not directed, in this case. I would tend to strongly suspect that the “homeless” exist because we’ve made it illegal for them to construct homes and illegal for them to accept jobs. Letting them build homes for themselves is half of an essential step of equity; letting them accept money without documentation (or income tax or minimum wage regulations) would be step two.
Alexander Turok
Dec 23 2020 at 7:54pm
The libertarian solution would be to legalize flophouses, not to let the homeless camp on land that doesn’t belong to them.
MarkW
Dec 26 2020 at 1:17pm
But many (most?) of these people are at least currently unemployable due to mental health and/or drug addiction (as well as the attendant health problems arising from those factors combined with living on the streets). And we could permit them to build ‘tiny’ homes, I suppose, but most lack the skills and have no place build (nor park) them.
My spit-balling solution would be 1) put small, very basic housing on low-value land away from residential neighborhoods, provide free transportation to and from the city (so the homeless can access services and — let’s be honest — panhandle and buy booze), and then strictly enforce the ban on urban camping. Need a place? We’ll set you up. Already have one but persist in not catching the bus to sleep there? Eventually you’re looking at either an involuntary commitment or some jail time (and there’s no liquor in either of those places).
belloscm
Dec 30 2020 at 2:34pm
“But many (most?) of these people are at least currently unemployable due to mental health and/or drug addiction (as well as the attendant health problems arising from those factors combined with living on the streets).”
Here in San Diego, the answer is: “most.” It is estimated that greater than 75% of our homeless population is afflicted by either substance abuse or mental illness. Advocates for the homeless tend to avoid the use of these numbers, as public sympathy for addicts and the mentally ill is not particularly high, especially when real money is involved. This purposeful veiling of the truth tends to undermine public support for meaningful mitigation efforts. Housing (un) affordability is the preferred narrative: “If only 1 bedroom apartments were $800 instead of $1800 a month…”
Perhaps the basic situation is different in Austin?
Michael S.
Dec 27 2020 at 3:48am
I agree, but this “modest proposal” is about internalizing (negative) externalities to people who will be mighty surprised because they’re not used to thinking this way (i.e. paying for preferences out of their own money)
IronSig
Dec 28 2020 at 11:40am
I know it’s a definition verging on tautology, but the legalization of innovative housing also requires politicians, both the elected and the appointed, to declare that the attempted solutions aren’t any of their business except in cases of theft and fraud.
https://reason.com/video/2016/12/09/los-angeles-homeless-tiny-houses/
As far as I can tell, anyone looking for helping out can head to: https://www.thetinyhouse.org/index.html
Fred
Dec 23 2020 at 11:01am
I don’t have a solution to the homeless situation. To ban them effectively requires some teeth in the law. Having the cops bulldoze the camps alone seems distasteful and would probably require jailing some recalcitrant people. Jail is a very expensive form of public housing and unlikely to be cost effective. I suspect that one big reason for the impotence of urban governments in the face of homelessness is the expense of creating alternatives. Housing assistance and jails are budget busters.
Chasing them out of one type of location into another location is very funny, but it doesn’t solve the problem.
Who are the homeless? How do they manage? I would be interested to see an analysis of the inputs into homeless people. They must get some money from somewhere. They consume food; I suspect that they consume intoxicants. What are their demographics? Employment history and skills? These are all things I don’t know and don’t see discussed, but I think have a bearing on solutions.
Alexander Turok
Dec 24 2020 at 10:30pm
“jailing some recalcitrant people”
2020 has brought us the novel idea that policymakers should try to minimize arrests of people who just really don’t feel like being arrested.
Alexander Turok
Dec 23 2020 at 7:58pm
I’ve suggested a similar reform of eliminating all campus police departments integrating the officers into the relevant local police department.
Jose Pablo
Dec 26 2020 at 10:48am
Bryan, you are going to run out of cocktail parties to assist …
Lord Canes
Dec 28 2020 at 4:08am
Bryan Caplan recommends bringing a billion (yes with a “b”) people into the US.
I suspect we would see an increase in visible homelessness under the open borders plan.
But then, some cities co-exist with favelas, or shantytowns.
Demands on infrastructure would increase rather dramatically also.
With so many people trapped on the roads for hours at a time, becoming an informal roadside vendor might be a good living.
Plan ahead!
Joshua Ellinger
Dec 28 2020 at 3:49pm
Look, I get that this is satire and the author has a real point but, boy, does this line of argument rub me the wrong way. There is little worse in this world in my eyes than trying to justify cruel policies by arguing that your ‘opponents’ are hypocritical.
…
I live in and own a house two blocks from I-35 and thus very close to a homeless camp near 35th and I-35. I’ve been here for about a decade. I am much more aware of the ‘costs’ than the Author.
The cost to me personally is (1) two stolen bikes and (2) one burglary. The burglary happened long before the housing ban — there was a crack house down the street before they got priced out of the neighborhood. The bikes were probably the same people.
It sucks to be poor in this country and desperate people do desperate things. I don’t see any personal evidence that letting people live under highways does anything other than just make it more obvious.
So… while I would prefer it if people did not have to live like that, I’ve do NOT support for banning homeless camps again.
The change in the policy by the City of Austin has lives are noticeably better because the cops don’t come take their few possessions every couple of weeks. (Better for the cops too — that’s not exactly their favorite part of the job.) Instead, someone has setup some handwashing stations/toilets and the Loaves-and-Fishes people come feed people periodically.
Abbott, for all his flaws, does appear to want to offer a better alternative and I respect him for that. It isn’t enough but it is an honest attempt. There are some guys doing tiny homes out east that might make put a deal dent in the problem if they can get enough funding.
…
This author was aiming for satire but all he appears to be is sadistic.
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