Fraud in MN

It’s been hard to read all the opinions about our fair state lately. Most people get some of it or all of it wrong: the groups, the geography, the factions, and the issues. In a post yesterday at The American Mind, Ayaan Hirsi Ali delivered the most insightful piece I’ve read so far. If you are from the West, you might want to read her book Infidel first as it best explains the depth and commitment of tribal society. The article, Minnesota’s Post-Assimilation Realty, details a concoction of groups moving together to create a powerful incentive package for what will probably be the largest theft of Federal dollars in US history.

Let’s pull apart the components of human action. Hirsi Ali introduces the first player.

Somali society is organized around the clan. Loyalty is not abstract, nor is it civic. It is biological and binding. The individual exists only insofar as he serves the group. Protection, marriage, honor, silence, and punishment are governed by this code. Obligations flow inward, sanctions flow downward. The clan precedes the individual and outlives him.

Instead of assimilating into the various groups of civic life, their group remains closed. Their action is based on internalizing benefits to themselves and keeping outsiders at bay.

Extract what can be extracted, and when the host weakens, move on. This is adaptation in its purest form. But it is fundamentally incompatible with modern civic life, which depends on social trust rather than blood ties.

Edward Banfield called this phenomenon โ€œamoral familism.โ€ Loyalty inward, indifference outward. Where it dominates, corruption is not a deviation from the system. In truth, it is the system. Public institutions become spoils to be captured, law becomes negotiable, and accountability vanishes.

But no group, in a country as large as the US, can operate solo. There are great over-arching institutions at play where activities will collide in action and deed. So who else is clearing an open path from other conflicting objectives?

Minnesota hosts a dense network of Islamic councils and advocacy groups dominated by Somali leadership. Nationally, the pattern is expanding. Each success is framed as inclusion, which is insulated from scrutiny by the language of civil rights. And each success advances a narrow, disciplined agenda that is deeply anti-modern.

The Democratic Party completes the triangle. Immigration shifted from policy to identity. Enforcement became immoral, and illegality was reframed as victimhood. The result is an unmistakable pattern of activists obstructing federal officers, officials retreating from their duties, and a party increasingly reliant on ethnic blocs it cannot discipline without alienating its base.

The common man (and woman) also has a role to play. In fact, they are now playing a role in the unraveling of this decade-long taking. But for so many years, the workers in Health and Human Services, the neighbors who noted empty daycare centers and so on, were silenced by political pressure. When the choice came between being a whistleblower and maintaining their social or workplace position, they chose to stay the course. Perhaps because they felt it would all be for naught. And perhaps they were right.

Read the whole piece. And all the while think about the structures, both in terms of people and their actions, and think about where liberalism was derailed.

Look for Groups

This is a great post for identifying players among the parties with an interest in calm returning to the streets in the central city.

Interestingly, these groups are present in most all communities, large and small.

The 60 business signed and posted a request for further cooperation. Note the neutral tone.

The editorial board of the local newspaper also called for a resolution.

Interestingly, the law enforcement folks went directly to the White House. Anyone following along with the conflict five years ago saw the effects it had on this, very necessary, segment of our communities. Their desire to make a direct appeal is understandable.

Each groupโ€™s ability to succeed in their duties and objectives have been crimped by the unrest between local and federal officials. But taking a stand can have tremendous costs. For good reason, all of these components are weighed out before action is taken.

Who will pull the plug?

It can be an unsuspecting player. Not one of the mighty forefront actors, digging in and refusing to back off. So small are they that they may never be recognized for their role. I say it will be the neighbors.

We’re talking about a very small geography, designated byperhaps a three-quarter-mile radius, taking the brunt of all this hyped-up activity. It must be exhausting. At some point, people say enough. But not out loud. Not where it can be filmed or recorded, but in the anonymity of the group. There will be a small signage. Warnings. Requests for no further contact.

That’s what happened five years ago. Slowly, the baskets of food, goods, and beverages dissipated. There was no fanfare, but small signals in facial expressions or shrugs expressed that the tents in the park had overstayed their allotted time for public use. Upon approaching a classic six-unit brownstone, one might only read the formal Do Not Disturb sign while standing at the entrance.

In the end, people want to live their lives in peace. They wish to be free to go to work, earn a paycheck, and bring it back to share with their families in pursuit of their individual desires. People seek ot balance their freedoms, not relinquish it all to others.

The neighbors will pull the plug.

What is Liberalism?

I wonder if Cass would agree: Liberalism is not fundamentally a fixed political ideology or a contingent historical doctrine; it is an enduring aspiration for the human condition itselfโ€”one that seeks to cultivate societies where individuals can pursue diverse visions of a good life, free from arbitrary coercion, amid mutual respect, pluralism, and institutions that safeguard dignity and self-governance.

I feel like Sunstein is would say freedom of speech is a necessary condition for liberalism. If man is to get along in society then there is a need for pluralism, for an admission that others, with other ideas, will group together and their choices as a path to freedom are to be respected. Thus, it is necessary to be able to speak freely about differences and similarities in the practical ways when people live side-by-side. In fact one might even say that free speech illicits a competitive pluralism where the investigation of others and a distinction of differences sets up a truth-finding for each.

Liberalism prompting

So I asked: Compare and contrast the substance of the ideas and the context in which they are presented between Cass Sunstein On Liberalism and Matt Yglessias recent posts on Liberalism on his Substack Slow Boring.

And here are some of excerpted reply.

Both Cass Sunstein and Matt Yglesias present liberalism as a broad, pragmatic framework rooted in core values like freedom, pluralism, and the rule of law, but they emphasize different aspects and respond to distinct critiques. Sunsteinโ€™s work, primarily through his 2025 book On Liberalism: In Defense of Freedom and related Substack posts, offers a philosophical and historical defense, portraying liberalism as a โ€œbig tentโ€ that unites diverse thinkers from John Stuart Mill and Friedrich Hayek to Ronald Reagan and Barack Obama. He defines it via a โ€œholy trinityโ€ of freedom (e.g., speech, religion, property), pluralism (respect for diverse ethnicities, religions, and ways of life), and the rule of law, extending to human rights, security (freedom from fear, echoing FDRโ€™s Four Freedoms), democracy, and โ€œexperiments of livingโ€ where individuals pursue varied paths without coercion. Sunstein incorporates economic elements like free markets with regulation, FDRโ€™s Second Bill of Rights for social and economic guarantees.

For Sunstein, liberalism is not static but actively constructed, a โ€œfighting faithโ€ that promotes innovation, fairness, and self-correction, making it essential for freedom and self-government amid modern threats.

โ€ฆ..

In contrast, Yglesiasโ€™s recent Substack series on Slow Boring (spanning late 2024 to early 2026) takes a more policy-oriented, U.S.-centric approach, framing liberalism as pragmatic technocracy tied to Enlightenment roots like John Locke and Adam Smith, emphasizing individual rights, non-radical governance, and impartial benevolence (e.g., evidence-based policies that benefit broadly without favoritism).

โ€ฆ

Similarities in substance include a shared emphasis on pluralism, freedom, and pragmatismโ€”Sunsteinโ€™s โ€œexperiments of livingโ€ aligns with Yglesiasโ€™s technocratic impartialityโ€”and both see liberalism as adaptable, blending markets with social protections (e.g., Sunsteinโ€™s FDR-inspired guarantees; Yglesiasโ€™s public order as progressive). They reject extremes: Sunstein critiques illiberal left/right; Yglesias warns against socialist purges or cosmopolitan overreach.

George Orwell is too much

From The Road to Wigan Pier-

On the day when there was a full chamber-pot under the breakfast table I decided to leave.

Orwell, writing in 1935-1937 goes into great detail about distressed housing. Here is an insight.

I have noted ‘Landlord good’ or ‘Landlord bad’, because there is great variation in what the slum-dwellers say about their landlords.

I found – one might expect it, perhaps – that the small landlords are usually the worst. It goes against the grain to say this, but one can see why it should be so. Ideally, the worst type of slum landlord is a fat wicked man, preferably a bishop, who is drawing an immense income from extortionate rents. Actually, it is a poor old woman who has invested her life’s savings in three slum houses, inhabits one of them and tries to live on the rent of the other two – never, in consequence, having any money for repairs.

Itโ€™s always neglected repairs that do a handsome home in.

A rule versus a norm

This example of a kindness, in the implementation of a rule, can be found in Sunsteinโ€™s book On Liberalism.

Compare, for example, a mandatory retirement law for people over the age of seventy-five with a law permitting employers to discharge employees who, because of their age, are no longer able to perform their job adequately. If you are an employee, it is especially humiliating and stigmatizing to have employers decide whether you have been rendered incompetent by age. A rule avoids this inquiry altogether, and it might be favored for this reason even if it is both over- and underinclusive. True, it isn’t exactly wonderful to be told that you have to retire because of your age, but if a rule depersonalizes the situation, then it has significant advantages. Or consider a situation in which officials can give out jobs at their discretion, as compared with one in which officials must hire and fire in accordance with rules laid down in advance. In the first system, applicants are in the humiliating position of asking for grace.

So much of the chatter in the public square, often inflammatory, takes only one piece of an event and amplifies its negative consequences. Or portrays the actor in an unnaturally beneficial light. Rarely if ever are the two sides that led to choices aired out in the fashion quoted above. Often the this is intentional, to win over an audience.

But this type of provocation is not kind or right or productive. If one desires the most favorable outcome, a more insightful analysis of the whole picture is desirable.

Perhaps it is when people are keeping their opinions to themselves that an honest sifting through of the alternatives occurs. Mostly norms are in play here, in the quiet light of personal judgements and sacrifice.

Todayโ€™s world is ruled by emotional triggers and half-truths. Post a photo of a drama scene and then just tell half the story. It works for a while, but eventual people get wise to it. The truth shines with resilience.

Tehran -Series Review

I had heard about this show a while ago, and I am glad to now get to watching it. When I was quite young, we visited Tehran, but the depiction here is of a far larger and more sophisticated city. We also drove over the mountains to the Caspian Sea, and I think of that every time a panoramic shot of the urban skyline is backdropped by the Alborz.

The plot and action in the series are snappy and fairly unpredictable. Thereโ€™s a nice tension of intrigue without too much violence. The two younger lead actors, Tamar and Milad, are excellent. They remind me of the Iranians students who were at boarding school with me in the late 70s.

Thereโ€™s a lot to like about this series.

Words for abstraction, words for operation

Here are key words and phrases commonly used to highlight the contrast between a philosophical approach (abstract, conceptual, theoretical, reflective) and an operational approach (practical, applied, concrete, implementation-focused). These draw from philosophy, political theory, methodology discussions, and related fields like liberalism debates.

Highlighting the Philosophical Approach

โ€ข Abstract / abstraction

โ€ข Theoretical / theorizing

โ€ข Conceptual / conceptual framework

โ€ข Ideal / ideal-type / idealized

โ€ข Normative / value-oriented

โ€ข Principled / principle-based

โ€ข Speculative / reflective

โ€ข Foundational / foundational principles

โ€ข Visionary / inspirational

โ€ข Manifesto-like / declarative

โ€ข Big-picture / overarching

โ€ข North Star / guiding ideal

โ€ข Philosophical defense / justification

โ€ข Thought experiment / hypothetical reasoning

โ€ข Meta-level / meta-theoretical

Highlighting the Operational Approach

โ€ข Concrete / concretization

โ€ข Practical / pragmatism / pragmatic

โ€ข Applied / application-focused

โ€ข Implementation / implementable

โ€ข Operational / operationalizable

โ€ข Action-oriented / action-focused

โ€ข Step-by-step / procedural

โ€ข Toolkit / how-to / blueprint

โ€ข Policy-oriented / policy design

โ€ข Institutional / reform-based

โ€ข Executable / hands-on

โ€ข Measurable / testable / empirical

โ€ข Grounded in reality / context-specific

โ€ข Methodological / technique-driven

โ€ข Instrumental / cause-and-effect focused

On Liberalism and more

SUNSTEIN: Low probability (that liberalism is self-defeating). The likelihood is that

1:04

weโ€™ll be undermined by anti-liberal and illiberal forces, not self-undermining. I think it’s fair to

1:11

say or to worry that liberalism doesn’t create the conditions for its own self-perpetuation,

1:18

so it’s not as if it’s self-undermining, but it doesn’t necessarily maintain itself. The reason is

1:24

that a society that is flourishing needs a lot of stuff in it, including norms of cooperation, norms

1:32

of charity, norms of mutual support. Liberalism, in my view, doesn’t undermine those things,

1:39

but other forces can undermine them, and it’s not clear liberalism has the resources to respond

1:45

COWEN: When you say other forces, do you mean hostile foreign powers? Or there’s something illiberal in societies that is not sufficiently driven out by liberalism?

1:53

SUNSTEIN: I think there’s something illiberal in the human heart.

In these first few minutes of this exchange between the irreplaceable Tyler Cowen and famed legal scholar Cass Sunstein, the sketch of timbers supporting liberalism as a way of life is laid out. The structure must be conducive to all the stuff society needs. The boards must be placed in such a way as to allow the rules to expand out while finding a tension so as not to collapse on each other. The builders need resources, in the form of materials and their labor.

But be aware! The biggest detractor may reside in the human need to hide things from ourselves.

At the juncture

Liberalism seems straightforward. Individuals are meant to live their lives freely. They flourish when they can follow their ambitions, or talents, or desires for a quiet life. As long as they do no harm to others, people left to their own devices can lead good lives.

All this is fine and good. But of course, we don’t live alone. We live with others. And it is at the juncture of protecting the desire for the self and the duties to the group that friction seems the most keen.

It’s perfectly acceptable for spouses to assign their liberties to each other. One takes care of pecuniary matters while the other looks after the relational part of the family, which is a common division. But sometimes the first is caught saying, “I own it all,” and the other is planning without a thought for the other. After a decade or two, one forgets what the other does for them. Slowly, without gratitude, all the small tasks enabling the freedoms they cherish are taken for granted.

The public and private often evolve into a crisis of duty.

Children easily take for granted the investments their parents made in their upbringing, especially in the US. It is easy for them to minimize what was done and begrudge them beneficial attention in their later years. Neighborhood dwellers take for granted the civic do-gooders who are responsible for small but useful things like stop signs and play lots. Volunteering to maintain or perpetuate shared services is thought of as optional.

And then, coming at the friction from the other angle, there are the enforcers. Those who wish to make every norm a rule. Instead of contributions made in sync with people’s time and talents, they wish to meter it all out and pass the collection plate with vigilance. The spirit of the exchange is ruined. Instead of thankful for the effort, people are resentful for the absence.

Liberalism maneuvers best along a framework for optimal execution. Liberalism needs a framework to avoid undermining itself from the illiberal tendency residing in most human hearts.

Mortgage rates to ease?

Trump has a planโ€”

“I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable,” Trump wrote.

Federal Housing Finance Agency Director Bill Pulte said on X that Fannie Mae and Freddie Mac will execute the purchase.

The combined cash and cash equivalents listed on the two firms’ balance sheets in their third quarter earnings reports to the Securities and Exchange Commission was less than $17 billion as of September 30.

Pulte in a phone call to Reuters said the two agencies had “ample liquidity” to carry out Trump’s order, including nearly $100 billion in available funds at each entity.

Full article from Reuters.

Red Eyeโ€” Series Review

Red Eye (2024 thriller series) is a gripping six-episode miniseries starring Richard Armitage as Dr. Matthew Nolan, a British surgeon accused of murder in Beijing, and Jing Lusi as DC Hana Li, the tough London officer escorting him on a red-eye flight back to China. Supporting standout Lesley Sharp plays MI5โ€™s sharp Director General Madeline Delaney.

The plot unfolds aboard the overnight Flight 357, where passengers begin dying mysteriously, forcing Hana to question Nolanโ€™s guilt amid a larger international conspiracy involving political deals and assassinations.

I quite enjoyed the fast pacing that keeps viewers hooked with constant twists, the claustrophobic airplane setting amplifying tension like a modern Agatha Christie mystery, and strong lead performancesโ€”Armitageโ€™s charismatic vulnerability and Lusiโ€™s grounded determination.

That was then– 1862

The Homestead Act of 1862 was a public initiative to make land in the middle of the US available to settlers at a very low fee. It encouraged the westward expansion by allocating 160-acre parcels of government-owned land to those who agreed to live on it for five years, build a home, and cultivate the land. By granting ownership after fulfilling these requirements, the US essentially gave away millions of acres to individuals who could prove up their claims. 

This policy hinged on a belief that one could turn labor into assets. The government asked people to take their families into the wilderness, far from protective services, to live in caravans or sod houses until they were able to build little cabins, to clear land of growth and turn the soil into protective crop acreage. This exchange offered little in way of immediate return. And the most successful groups turned out to be from cultures of strong family networks for support and a willingness to live frugally in anticipation of a better future.

In truth, the bargain entailed even more. The government was basically asking people to not only see to their own needs on their claim, but to collaborate with neighbors in townships and see the roads get built, and the one-room schoolhouses be completed. In exchange for 160 acres of private property, sweat and toil had to also be dedicated to transportation infrastructure and provisions for education. These early settlers had to have had an enormous desire for a homesite.

I don’t know if such a government program would be successful today. It seems like a tall order. Yet it would be helpful to know at what point the average citizen can be energized to volunteer their labor in support of public infrastructure or support. When are they energized to provide aid in response to a neighboring disaster? What severity of wrongdoing triggers the impulse of an observer to overcome possible whistle-blower costs and report? Where are their public goods ready to be provided spontaneously and who can match that need with their labor?

Non-profit reform and Methodology

Mark Gilson (@markwgilson) is a local data nerd on X. Mostly, he has concentrated on getting out small details of ons-goings at school board meetings. He’ll post things from the agendas or video clips from the meetings, which busy parents don’t have time to attend,

The recent fraud explosion has opened up a new lane for his skills. In a post today, he describes how he filtered a search of the local non-profit public filings to locate ones with out-of-sync attributes.

Using this technique and his data skills, he found this doosey.

Screenshot

But instead of the methodology to sweep the public records, what about the mechanisms that attract people like Mark to take on this job? Indeed, it has to do with the recent stepping down of the Governor from his reelection campaign. It was an admission of a loss of confidence, perhaps even wrongdoing. But what would it take for an everyday citizen to get involved sooner? The hanky panky has been in play for about a decade. Investigative reporters are meant to take on this exposรฉ-type work, but they didn’t. Could there have been other incentives to engage other members within the group to play the heretic? Or is a society doomed to fail magnificently before a complete shake-down and repordering occurs?

Orientation Tables are cool

The concept of โ€œorientation tableโ€ (plural: โ€œorientation tablesโ€) in economics refers to institutionsโ€”formal rules, informal norms, customs, laws, and social structuresโ€”that serve as cognitive and interpretive aids for individuals navigating an uncertain world of purposeful human action. These tables provide reference points or frameworks that help actors form expectations, anticipate othersโ€™ behaviors, coordinate plans, and attach subjective meanings to their situations, without rigidly determining outcomes.

Coined by Ludwig von Mises, the Austrian economist, the phrase draws from his praxeological framework in works like Human Action (1949), where he describes how individuals require guides for โ€œorientationโ€ in a chaotic reality lacking perfect causality or predictability. Mises emphasized that in an open-ended world, people rely on institutional โ€œtablesโ€ to orient their actions, extending ideas from his earlier German writings on the role of social institutions in facilitating rational planning.

Virgil Storr and collaborators like Peter Boettke popularized and refined the English term โ€œorientation tablesโ€ in post-2000 Austrian scholarship, particularly in papers such as โ€œPost-Classical Political Economy: Polity, Society and Economy in Weber, Mises and Hayekโ€ (2002). They portray institutions as non-deterministic โ€œorientation tablesโ€ that embed economic action within social and political contexts, blending Misesโ€™ methodological individualism with Max Weberโ€™s interpretive sociology (Verstehen) and Friedrich Hayekโ€™s spontaneous order.

For example, private property rights act as an orientation table by signaling legitimate control over resources, enabling entrepreneurs to plan without constant fear of expropriation. Market prices serve similarly, conveying dispersed knowledge to orient production and consumption decisions. Cultural norms, like trust in commercial dealings, provide additional tables in specific societies, explaining why markets function differently across contexts (e.g., bazaars vs. supermarkets).

In post-disaster recovery, community networks and property institutions orient survivorsโ€™ rebuilding efforts, fostering resilience. Absent robust tablesโ€”as in socialist systems lacking genuine pricesโ€”miscoordination and inefficiency arise.

Ultimately, by naming the orientation table under analysis, an observer can proceed with an aligned perspective. Rather than human action being socially embedded, individual action can be simultaneously quantified by group. This brings an understanding of price to complete the circle of individual and institutional value.

A mine, a port, and a road

Josh Hendrickson has an interesting New Year’s Day post on Economic Forces today. He reviews the term cooperation costs as proposed by Earl Thompson in a 1982 paper: Underinvestment Traps and Potential Cooperation. Hendrickson uses Thompson’s framework to discuss a breakdown or perceived breakdown in optimal investment in three scenarios. Each one offers a unique combination of the collective and private forces at work in the creation, penalty or use of a public good.

Let’s fit the first story about a mine, a port, and a road into the context I propose here at Home Economics. Instead of considering the whole landscape within a single system, break the system into groups, each with a mainspring to action. The mine is a profit-oriented venture. Its existence depends on the collection of actors that make up its workforce and investors, all of whom share an interest in extracting a private gain from their involvement. The group of people involved in the port’s operations is in a similar situation. The road is different. It is an infrastructure open to all nearby residents as well as those travelling for commercial needs. Roads are most often paid for by the larger group, as it is beneficial to most that their use remains open, even to the lowest payees. Even though members of GrMine and GrPort are also members of GrRoad, it is safe to assume the last group is significantly larger than either of the first two.

Earl Thompson’s model posits that the potential cooperation cost is the expense borne by investors in the mine and the port, along with the state, of communicating and bartering to secure the construction of the road. This happens at a fixed point in time, and once it is done, there are no more cooperation costs. Hence, the thought that those who come later free ride on the use of the road.

I propose to look at each group separately. Amongst the members of each group, there are shared social concerns. The ability to get to work on a good road may be one amenity of value. Yet the benefit of the new road for the mine workers may be a different value than the port workers, again depending on distances or substitutes that each set has access to. The municipality ( county/state or government structure of choice) is composed of a population that also should perceive a benefit from the road. However, this could be, on a per-person basis, of much lower value.

One of the three groups could be comprised of a population that is willing to pay for the entire road, as it is that valuable to them. If the mine is so remote, and the port area already has suitable transportation infrastructure in place, then in order to get employees out to the mine and product in from the mine, the mine might find it suitable to bear most of the expense. Or there could be some suitable combination. But the calculation involves each individual who must act for the enterprise to succeed.

There is also the possibility that the overarching group creates additional costs as members resist the new road due to costs not borne by either the mine group or the port group. If the road goes through a residential neighborhood, then the projected traffic noise has a negative impact on the residents, lowering their property values. In this communication stage of the project, their resistance to cooperation could be seen in city council meetings as voices of objection. Thompson’s model does not allow for outside resistance. Sorting by groups and their interests clarifies how costs are borne and hence who may sabotage cooperation.

There are all sorts of combinations of coordination costs between these three groups that could make it more worthwhile for one or the other to front the bill. We see developers putting in roads to provide access to a new development. We see municipalities investing in infrastructure to attract businesses. All of these choices are dependent on the particular situation and point in time. To say that those who come later take advantage of the cooperation costs of those who come before isn’t accurate, as the system is dynamic. They may not have paid for the cost, but they were not a part of any of the benefits of the original decision-making either.

The other factor facilitated by the sorting into groups is the time factor. The set-up time to open a mine is bound to be different than to complete a road. And what type of road are we talking: dirt, gravel, or asphalt? The reality is that these projects live over varying time spans. This factors into the decision to cooperate. Cooperation costs are not a single fixed cost, but a time-indexed stream of costs and benefits, discounted differently by each group.

The structural issue, for the purpose of analysis, is that the individual actors, reacting to their own concerns, reveal shared concerns with members of their group. The degree of this value plays into the cooperation costs of settling with outside parties on their shared interests. Thompsonโ€™s cooperation costs assume a fixed set of beneficiaries; once group membership, veto players, and time-path asymmetries are introduced, the free-rider interpretation no longer holds.

Year-End Update- What this site is about

This site advances a structural theory of economic organization in which societies are understood as collections of bounded groups that govern shared resources internally while competing externally through privately capturable returns. The central claim is that economic order emerges from a sorting mechanism: individuals and activities are continually reallocated between cooperative group settings and market-like domains based on the relative performance of group-public assets versus private opportunities.

Within this framework, groups are defined not merely by identity or culture, but by rule-governed access to non-divisible or imperfectly divisible assets. Such assetsโ€”landed estates, commons, institutional authority, epistemic legitimacyโ€”function as group-public goods: they are accessible to members, governed by internal norms, and resistant to direct pricing. Participation confers benefits that are distributed through social rules rather than markets, creating a publicness that is endogenous to group membership rather than universal.

Outside these groups, individuals engage in domains characterized by alienable, liquid, and privately capturable returns. These domainsโ€”markets, trade, professional careers, or platformsโ€”permit competition unconstrained by group obligations and reward individual optimization. The boundary between group and market is therefore not fixed; it is continuously reshaped by changes in relative returns, enforcement capacity, and legitimacy.

The theoryโ€™s explanatory power lies in showing how publicness and competition are not opposites, but complementary outcomes of the same sorting process. Internally, groups suppress price signals and individual appropriation in order to stabilize shared assets and reduce coordination costs, consistent with Ostromโ€™s findings on common-pool resource governance. Externally, groups compete for members, status, and influence through performance, innovation, and access to higher-return opportunities, aligning with Northโ€™s account of institutional evolution driven by differential returns and path dependence.

This mechanism also integrates Misesโ€™s praxeological insight that all outcomes originate in individual action. Individuals are not assumed to act altruistically or selfishly in the abstract; rather, they respond to institutionally structured opportunity sets. Actions that appear cooperative within the groupโ€”maintenance of shared assets, adherence to norms, acceptance of unequal internal distributionโ€”are rational given the group-public payoff structure. Conversely, actions that appear self-interested outside the group reflect the higher marginal returns and certainty of private capture. The theory thus avoids moralizing distinctions between cooperation and self-interest, treating them as context-dependent expressions of action under differing institutional constraints.

Historically, the theory explains periods of social transition as moments when private returns in external domains outpace the productive or legitimating capacity of group-public assets. Under such conditions, groups become custodial rather than generative: obligations persist while returns stagnate. Individuals increasingly sort into private domains, weakening internal enforcement and prompting pre-commitment maneuvering, ideological rationalization, or reform efforts. This dynamic aligns with classical coordination problems such as Rousseauโ€™s Stag Hunt, while extending them beyond static games into historically embedded institutional change.

By framing economic structure as an evolving ecology of groups and markets linked through a sorting mechanism, this theory bridges literature on institutions, collective action, and market pricing. It accounts for why public goods are often effectively governed at intermediate group scales, why markets excel at allocating marginal resources across groups, and why systemic change is typically gradual, conflictual, and legitimacy-lagged rather than abrupt or purely efficiency-driven.

In sum, the proposed framework offers a unified explanation for how societies organize cooperation internally while sustaining competition externally, and how shifts in resource productivity drive the continual reconfiguration of social commitments and economic structures.

Blended systems of cooperation and competition

The Stag Hunt, explained as a shifting publicโ€“private balance

Imagine a small group of hunters living at the edge of a forest. Together, they can hunt a stag. A stag is large: it feeds everyone for days. But it can only be taken if all hunters cooperate, hold their positions, and act in coordination. The stag, once caught, is a group-public asset: no one hunter can claim it alone, and everyone benefits.

Individually, however, each hunter can hunt a hare. A hare is small, but it can be caught alone, quickly, and with certainty. The hare is a private asset: the hunter who catches it keeps it.

At first, cooperation dominates. The group trusts itself, norms are strong, and everyone expects the others to stay. Hunting the stag makes sense.

But conditions begin to change. Perhaps the forest becomes less predictable. Perhaps hunger becomes more acute. Or perhaps some hunters discover they are particularly good at catching hares. The private return to individual action rises, while the reliability of collective action weakens.

Now the calculation shifts. Any single hunter who abandons the stag hunt early can secure a hare for himself. If even one hunter defects, the stag escapes and the group gets nothing. As more hunters privately consider this possibility, the group-public asset becomes fragile. Trust erodes not because cooperation is irrational, but because its success depends on others remaining committed.

Eventually, everyone hunts hares. The group survives, but on less than it could have had. The stag hunt fails not because hunters become selfish in character, but because the balance between public and private returns has shifted.

Rousseau introduced the Stag Hunt in 1755, in Discourse on Inequality, as a way to illustrate how early cooperation collapses when private, individually secure options undercut fragile collective commitments. The Stag Hunt shows how cooperative systems fail not through greed, but through the gradual rise of privately secure alternatives that undercut shared commitment.

My experience is that mostly hunters group up. Partly because they share a similar interest. Partly for the camaraderie. But also because they share the work of baiting, setting up, tracking, and processing.

Paradigm Shift

In this ten-minute video, economic professor Ashley Hodgson lays out how a shift at the foundational base of a field of knowledge occurs and builds on new building blocks.

Ashley Hodgsonโ€™s New Enlightenment argues that modern societies are governed less by conscious choice than by incentive-driven systems that shape beliefs, behavior, and outcomes at scale. Drawing on behavioral economics and systems thinking, she challenges Enlightenment assumptions about rational individuals, neutral markets, and linear progress (especially GDP-centric thinking). Her central claim is that humans now function within a kind of social superorganism, where misinformation, institutional incentives, and feedback loops distort what people perceive as rational or true. A new enlightenment, she argues, requires updating our models of rationality, knowledge, and governance to reflect these systemic dynamics rather than relying on outdated economic myths.

Hodgson offers a compelling critique of Enlightenment assumptions and a sophisticated account of systemic failure, but her โ€˜New Enlightenmentโ€™ functions more as a diagnostic framework than as a theory of institutional emergence or system dynamics.

Religiosity of Employment

If youโ€™ve been taking the classics for granted, if youโ€™ve been focusing on science, you are denying yourself insights into solutions.

โ€”A submissive spirit might be patient, a strong understanding would supply resolution, but here was something more; here was that elasticity of mind, that disposition to be comforted, that power of turning readily from evil to good, and of finding employment which carried her out of herself, which was from Nature alone. It was the choicest gift of Heaven; and Anne viewed her friend as one of those instances in which, by a merciful appointment, it seems designed to counterbalance almost every other want.

J Austen reviews the intricacies of social decision making under constraints both natural and real.

Lookism a la J Austen

Personal size and mental sorrow have certainly no necessary proportions. A large bulky figure has as good a right to be in deep affliction, as the most graceful set of limbs in the world. But, fair or not fair, there are unbecoming conjunctions, which reason will patronize in vain,-which taste cannot tolerate, โ€”which ridicule will seize.

A โ€˜bulky figureโ€™โ€ฆcโ€™est amusant.

Orientation-by-Institution

By โ€œorientation-by-institution,โ€ I refer to the way institutional arrangements function as shared interpretive frameworks that orient expectations and render individual plans mutually intelligible under conditions of uncertainty.

Chat has a story.

They were halfway through lunchโ€”salads mostly untouched, bread already goneโ€”when someone noticed it.

โ€œDid you see her hair last week?โ€ one of them said, lowering her voice even though the person in question wasnโ€™t there. โ€œIt actually looked really good.โ€

โ€œYeah,โ€ another replied, โ€œbut doesnโ€™t she get it cut at Little Snips? Why does she even go over to that side of town?โ€

That set it off.

โ€œWell, the cut is good,โ€ someone said, โ€œbut itโ€™s not like itโ€™s magic. You can get a decent cut anywhere.โ€
Another leaned back and laughed. โ€œDecent? Please. She pays way too much. That shwanky salonโ€”what is it now, Maison Something? Itโ€™s nice, sure, but the cut is the same cut whether you pay forty dollars or two hundred.โ€

They all laughed, because it was true and because saying it felt good.

Then someone else chimed in, quieter but smiling. โ€œHonestly, my sister-in-law cuts my hair in her basement. Folding chair, mirror from Target. I probably overpay her too, but at least I know where the moneyโ€™s going.โ€

That changed the tone just a little.

โ€œSo really,โ€ one said slowly, โ€œweโ€™re all paying for different things.โ€
โ€œExactly,โ€ another added. โ€œNot just the cut.โ€

They started listing it out without meaning to: paying for polish, for status, for supporting family, for convenience, for being seen in the right place, for not being seen at all. Same service, different pricesโ€”because each price bought entry into a different social arrangement.

By the time the check came, no one was talking about hair anymore. They were talking about neighborhoods, schools, reputations, obligationsโ€”about how money quietly props up the social worlds they move through every day.

And no one asked again why their friend went to Little Snips. They already knew

Wake Up Dead Man: Knives Out–Movie Review

Iโ€™m a fan of Daniel Craig, so I may be biased in this whole-hearted recommendation of the new Knives Out movie. Viewers will come away satisfied with the intrigue, the cast of characters, and the denouement of solving the crime. It’s all there. But there’s more.

In a surprising twist, this new release delves deeper. Writer Rian Johnson uses the exploration of faith as a central theme in this third incarnation of Knives Out. Somehow in this otherwise commercial entertainment vehicle, he depicts journeys of faith without condensation of suspended disbelief or mockery.

Is this the beginning of a new tolerance for ancient traditions? There was a magic in it.

Mises proposes Praxeology to show the way

Thus there are no irreconcilable conflicts between selfishness and altruism, between economics and ethics, between the concerns of the individual and those of society. Utilitarian philosophy and its finest product, economics, reduced these apparent antagonisms to the opposition of short-run and long-run interests. Society could not have come into existence or been preserved without a harmony of the rightly understood interests of all its members.

There is only one way of dealing with all problems of social organization and the conduct of the members of society, viz., the method applied by praxeology and economies. No other method can contribute anything to the elucidation of these matters.

Time tables for success

If people want effects muted they draw out terribly long time tables, muting any situational success or failure. If people want to control the narrative they clip the timetable to the period of interest.

Time matters for any proper analysis or policy considerations. In real estate, the timeframes are almost always too short.

Work and its natures

At home-economic we think of work as an activity within an analytical structure which proposes that human action is propelled by two forces. The work often associated with volunteerism percolates along, driven by the desire to help, to impact more than oneself.

This is from a lovely essay by Russ Roberts

Aristotle has a different explanation and it is quite beautiful. He says that unlike a creditor (who only cares about the recipient because he wants to be repaid), โ€œbenefactors love and are fond of those they have treated well, even though they are neither useful to them now nor likely to become so later on.โ€ He then says something a little shocking and quite extraordinary. The bracketed phrase is Leonโ€™s:

โ€œThe same thing also happens with craftsmen; for every craftsman loves his own work more than he might be loved by that work were it to become alive. This is especially true, perhaps, with poets, for they love exceedingly their own poems, loving them as children. This is in fact also the case with the benefactor, for the beneficiary is the work of the benefactor; thus, the benefactor is fond of him more than โ€œthe workโ€ [that is, the beneficiary] is of its maker.โ€

From the Census

National vacancy rates in the third quarter 2025 were 7.1 percent for rental housing and 1.2 percent for homeowner housing. The rental vacancy rate was not statistically different from the rate in the third quarter 2024 (6.9 percent) and not statistically different from the rate in the second quarter 2025 (7.0 percent). 

The homeowner vacancy rate of 1.2 percent was higher than the rate in the third quarter 2024 (1.0 percent) and higher than the rate in the second quarter 2025 (1.1 percent). 

The homeownership rate of 65.3 percent was not statistically different from the rate in the third quarter 2024 (65.6 percent) and not statistically different than the rate in the second quarter 2025 (65.0 percent).

That was then – tenant screening

Sir Walter must face financial circumstance and lease out his country manor home. The go-between, Shepard, spouts off all the appealing characteristics of his potential tenant.

And who is Admiral Croft?” was Sir Walter’s cold suspicious inquiry.

Mr. Shepherd answered for his being of a gentleman’s family, and mentioned a place; and Anne, after the little pause which followed, addedโ€”

” He is rear admiral of the white. He was in the Trafalgar action, and has been in the bast Indies since ; he has been stationed there, I believe, several years.

One must be careful using the family word in real estate, today. Best to think of other descriptors. But not personal features as such:

Mr. Shepherd hastened to assure him, that Admiral Croft was a very hale, hearty, well-looking man, a little weather beaten to be sure, but not much; and quite the gentleman to he sure in all is notions and behaviour.

Outward characteristics are not to be asked or recorded on a rental application. But the terms of the unit can be recorded.

not likely to make the smallest difficulty about terms; only wanted a comfortable home, and to get into it as soon as possible; knew he must pay for his convenience;-knew what rent a ready-furnished house of that consequence might fetch; should not have been surprised if Sir Walter had asked more;-had inquired about the manor;

Oh- and thereโ€™s this.

โ€”would be glad of the deputation, certainly, but made no great point of it;โ€” said he sometimes took out a gun, but never killed ;โ€”quite the gentleman.

And theres lots to say about the family. (Also a no-no today)

Mr. Shepherd was eloquent on the subject; pointing out all the circumstances of the admiral’s family, which made him peculiarly desirable as a tenant.

He was a married man, and without children; the very state to be wished for. A house was never taken good care of, Mr. Shepherd observed, without a lady: he did not know, whether furniture might not be in danger of suffering as much where there was no lady, as where there were many children. A lady, without a family, was the very best preserver of furniture in the world. He had seen Mrs. Croft, too;

All these rich social indicators are removed when renters seek homes in todayโ€™s market.

Good habits

Let the peace of Christ rule in your hearts, since as members of one body you were called to peace.

And be thankful.

Let the message of Christ dwell among you richly as you teach and admonish one another with all wisdom through psalms, hymns, and songs from the Spirit, singing to God with gratitude in your hearts.

And whatever you do, whether in word or deed, do it all in the name of the Lord Jesus, giving thanks to God the Father through Him.
COLOSSIANS 3:15-17

Whatโ€™s considered acceptable?

Standards can change over time.

Standards can vary between cities.

Standards may vary based on taste.

Ultimately, it is the local community that determines which options are the most suitable and which are less desirable. Which have fallen so out of favor that the structures are abandoned completely. And which ones promise a reward for rehabbing.

Real estate is local. National figures provide sparse details.

The grocery and the mountain

When should a community gather up its resources and provide a service to all members? And when should individuals be turned out into the world to navigate on their own dime? These debates cross all levels of government.

Some provisions are accepted as a government thing, like piped water or sewer. Even basic universals like education attract conversation about private options. Roads are sometimes (although truly not very often) toll roads. Bridges are mostly a public venture, as are parks. What takes a good out of private production and places it in the receivership of a bureaucracy?

Fear usually. Police and firefighters are in place to ensure personal safety. The New Deal was to alleviate fears against a repeat of depression era outcomes. When society risks a loss that compels a human response, society steps forward with a safety net.

Mamdani, New York Cities new mayor, sold the people on a fear of escalating grocery prices and thus the need for a government run store. This seems different than when a small community rounds up a helicopter rescue for a mountain climber who ventured up a nearby peak alone and unprepared.

So who gets to pick what there is to fear? Not everyone does this well. Hereโ€™s Mises (from Theory and History)

They recommend some policies, reject others, and do not bother about the effects that must result from the adoption of their suggestions.

This neglect of the effects of policies, whether rejected or recommended, is absurd. For the moralists and the Christian proponents of anticapitalism do not concern themselves with the economic organization of society from sheer caprice. They seek reform of existing conditions because they want to bring about definite effects. What they call the injustice of capitalism is the alleged fact that it causes widespread poverty and destitution. They advocate reforms which, as they expect, will wipe out poverty and destitution. They are therefore, from the point of view of their own valuations and the ends they themselves are eager to attain, inconsistent in referring merely to something which they call the higher standard of justice and morality and ignoring the economic analysis of both capitalism and the anticapitalistic policies. Their terming capitalism unjust and anticapitalistic measures just is quite arbitrary since it has no relation to the effect of each of these sets of economic policies.

Taking over a grocery is sure to fail financially without ensuring any additional food security for those who need it. Itโ€™s a vanity project. Wouldnโ€™t it be like telling the mountaineer that a government representative would need to participate in the planning and execution of his climb? Yet here, the little community bears a disproportionate cost for the climbers’ foolishness.

It seems that the risk to persons and the community happens to various degrees. Whether the risk triggers community involvement has to do with its extreme and the distance between the risky step and all the other steps in between.

Happy Birthday Emily Dickinson

I died for Beauty - but was scarce
Adjusted in the Tomb
When One who died for Truth, was lain
In an adjoining Room -

He questioned softly "Why I failed"?
"For Beauty", I replied -
"And I - for Truth - Themself are One -
We Brethren are", He said -

And so, as Kinsmen, met a Night โ€”
We talked between the Rooms -
Until the Moss had reached our lips -
And covered up - Our names -

How would it feel?

People speculate why young people have delayed home purchases. Only around 20% of home purchases fall in this category. A historic low. But is it that surprising? Look at the surge of foreclosures in ’07-’08 and ’09. Hundreds of thousands of people who were never meant to have financial struggles lost their homes.

Children ages 8-12, old enough to sense the stresses within their families, yet too young to analyze the impact of a national financial crisis, were bystanders to these unpleasant legal actions in the early 2000’s. These are today’s young home buyers. Uncertain of what a real estate purchase will do for them. The anxiety associated with foreclosures has often been portrayed in litterature.

In Death of a Salesman, the familyโ€™s fear of losing their home emerges gradually, revealed not through a dramatic announcement but through Lindaโ€™s quiet confession that they are barely keeping up with the mortgage. She tells Biff and Happy that Willy has been borrowing money just to make the house paymentsโ€”a disclosure that reframes the entire domestic landscape. What had seemed like an ordinary family home is suddenly understood as something fragile, held together by secrecy and strain.

The looming threat of foreclosure exposes the playโ€™s deepest emotional fractures. The mortgage becomes a symbol of Willyโ€™s unraveling identityโ€”his failure as a provider and his desperate clinging to the American Dream. Lindaโ€™s hushed explanations carry a mournful tenderness, showing how fear and loyalty tangle together under financial pressure. For Willy, the house is both sanctuary and burden, and the possibility of losing it turns that symbol of pride into a reminder of collapse. The familyโ€™s anxiety over the homeโ€™s instability reveals how economic pressure corrodes affection, pride, and hope, tightening around them until it shapes every gesture they make toward one another.

Capital Theory

What is Capital Theory in Economics?

Capital theory is the branch of economics that studies the nature, role, measurement, and productivity of capital โ€” the produced means of production (machines, factories, tools, infrastructure, software, etc.) that are used to produce goods and services.

It tries to answer fundamental questions like:

  • What exactly is โ€œcapitalโ€?
  • How should it be measured?
  • How does capital contribute to economic growth and income distribution (wages vs. profit/interest)?
  • Why does the return on capital (interest rate or profit rate) behave the way it does?

Capital theory has been one of the most controversial and technically difficult areas in economics, especially in the 20th century.

Key Concepts and Debates

  1. Capital as a homogeneous โ€œfundโ€ (neoclassical view)
    • Mainstream neoclassical economics (since the late 19th century) treats capital as a single, measurable quantity (like โ€œdollars of capitalโ€ or a โ€œstock of valueโ€).
    • In simple production functions (e.g., Y = F(K, L)), K (capital) is treated like labor L โ€” you can smoothly substitute one for the other.
    • The interest rate is the price that equilibrates saving and investment.
  2. The Cambridge Capital Controversy (1950sโ€“1970s) โ€“ the big critique
    • Economists from Cambridge, UK (Joan Robinson, Piero Sraffa, Luigi Pasinetti) challenged the neoclassical view.
    • Major problems they exposed:
      • Reswitching: The same technique of production can become profitable again at lower (or higher) interest rates, destroying the simple idea that lower interest rates always lead to more โ€œcapital-intensiveโ€ techniques.
      • Capital reversing: Higher interest rates can sometimes lead to using more capital-intensive methods โ€” the opposite of what neoclassical theory predicts.
      • Measurement problem: You cannot measure the โ€œquantity of capitalโ€ independently of the interest rate or profit rate, because capital goods are heterogeneous (a robot โ‰  a shovel). Their value depends on future profits, which depend on the interest rate โ€” a circularity.
    • Conclusion of the critics: The aggregate production function and the idea of a downward-sloping demand curve for capital are logically flawed.
  3. Austrian view (Bรถhm-Bawerk, Hayek, Lachmann)
    • Capital is highly heterogeneous and time-structured.
    • Production takes time; capital goods are โ€œintermediate goodsโ€ at different stages of completion.
    • Emphasizes the โ€œperiod of productionโ€ or โ€œroundaboutnessโ€: more productive methods are more time-consuming.
    • Interest originates from time preference (people value present goods over future goods).
  4. Post-Keynesian / Sraffian view
    • Rejects marginal productivity theory of distribution.
    • The rate of profit is determined by monetary factors, class struggle, or growth requirements, not by the โ€œmarginal product of capital.โ€
    • Capital is valued in terms of its own reproduction cost (Sraffaโ€™s โ€œprice of productionโ€).
  5. Modern mainstream response
    • After the Cambridge controversy, most neoclassical economists largely ignored the deep logical problems and continued using aggregate production functions for practical reasons (they work reasonably well empirically in many contexts).
    • Some (e.g., โ€œnew growth theoryโ€) shifted focus to knowledge, human capital, and ideas rather than physical capital.

Summary Table of Major Schools

Bottom Line

Capital theory is the attempt to understand one of the most important concepts in economics โ€” capital โ€” and it remains unresolved. The mainstream treats capital as a simple scalar quantity for modeling convenience, but the Cambridge controversies showed that this simplification has serious logical flaws once you dig into the details. The debate is largely dormant in mainstream teaching but still very much alive among economic methodologists and heterodox economists.

That was then

Landlord portrayal in Bleak House.

As it was still foggy and dark, and as the shop was blinded besides by the wall of Lincoln’s Inn, intercepting the light within a couple of yards, we should not have seen so much but for a lighted lantern that an old man in spectacles and a hairy cap was carrying about in the shop. Turning towards the door, he now caught sight of us. He was short, cadaverous, and withered; with his head sunk sideways between his shoulders, and the breath issuing in visible smoke from his mouth, as if he were on fire within. His throat, chin, and eyebrows, were so frosted with white hairs, and so gnarled with veins and puckered skin, that he looked, from his breast upward, like some old root in a fall of snow.

I can show you

The theory proposed here, at home economics, is that there’s a nature to how people act to improve their lives. For lack of better names, activities occur in spheres with public-facing tendancies or private ones. When people operate for the group, they give to improve for an affiliated public endeavor, whereas the private sphere engages privately held resources to grow and gain.

I think this framing helps to explain the suggested paradox described in this Free Press article about a Chicago Trump supporter coming to the aid of Venezuelan migrants.

Aleah Arundale voted for Donald Trump, supports his decision to close the border, and may as well have introduced herself by singing โ€œThe Star-Spangled Bannerโ€ when we met at her front door in Chicago last month. She was wearing a white sweatshirt with โ€œUSAโ€ plastered on the front, a sequined American flag skirt, heart-shaped red glasses, and bedazzled red and white sneakers.

She also has spent the last three years helping Venezuelan immigrants. It began when buses from Texas started dropping off people at a street corner near where Arundaleโ€™s daughter went to dance class, as part of Governor Greg Abbottโ€™s expulsion of thousands of immigrants to sanctuary cities across the country.

When Aleah makes decisions as a Chicago resident, her choices are weighed out within that context. Her group interests lie primarily on her block or down the street. She can be pro-Trump and anti-everyone-else-outside-our-boundaries. This keeps her public dollars and work weighted to the local food shelf, her elderly parents’ care, or a literacy program at the public library. Any outside force taking resources away from these microtransactions is a competitor.

But then the immigrants are dropped off by the busloads, on the corner where kids get picked up by the school bus. They’ve switched groups. No longer are they an impersonal one of many in a faraway place; they’ve breached the group. They now rate as the most in need within this new framing. And thus, the mechanisms that drive the force for the good of the group are energized. Aleah gives the plight of the Venezuelians in some rank or fashion amongst her other commitments.

There are two things to see here. First– the framing of the group and thus its acknowledgement. Second, the lever for activating time, energy, and resources differs from the private sphere. Yet this all transpires through a juggle of tradeoffs trapped in a world of constraints.

The error of price-to-income-

The comparison of home prices to buyers’ incomes is a popular measure for assessing the health of the real estate market. Presently, that multiple seems high, and people are using it to cry, crisis! But is this true?

Amy Nixon posts on Twitter (now known as X):

All of economics is supply and demand.

The median household to median income argument makes sense only in an economy where we have built enough housing units per capita, and every housing unit is being allocated as a family shelter unit because it serves no other economic utility

The model breaks down when you have wealthy families buying 3-4 spare vacation homes. And mom and pop landlords hanging onto starter homes when they upsize. And institutions buying millions of single family homes. And single people living alone in two units instead of coupling to buy one unit. And foreign citizens buying homes. And people buying and using 2 million single family homes as hotels (Airbnbs)

So long as single family residential housing is viewed as and can be used as an investment or luxury item beyond owner-occupied shelter and we donโ€™t build enough homes to offset all those other uses, the ratio pictured in the infographic below can (and will) go even higher over time

Itโ€™s not 1985. And itโ€™s never going to be 1985 again.

What Amy says is that there is a mix of home-ownership types. If you are analyzing Lake Country, with many second homes, there will be a different price-to-income figure than if you consider a first-tier suburb built almost exclusively of starter homes. I like to call them platters. It’s the local eco-systems of properties that have interesting numbers. Averaging just smudges out all the details.

I’ll also note the shift in demographic mix. The number of first-time buyers is at an all-time low. From NAR:

WASHINGTON (November 4, 2025) โ€“ The share of first-time home buyers dropped to a record low of 21%, while the typical age of first-time buyers climbed to an all-time high of 40 years, according to the National Association of REALTORSยฎ’ 2025 Profile of Home Buyers and Sellers. This annual survey of recent home buyers and sellers covers transactions between July 2024 and June 2025 and offers industry professionals, consumers, and policymakers detailed insights into homebuying and selling behavior.

Repeat buyers enter the market with equity. They do not need to take on as much debt relative to their income as first-time buyers do. Yet the sales price is the measure from which payment is extrapolated, not the actual payment. As a market rises, so does the equity, pushing this fictitious measure of debt load out of whack with reality.

Troublemaker Tactics: Hoopla Hurdles Edition

As the holiday long weekend comes to a close, one can be assured that not all celebrations went off as planned. Family get-togethers can be precarious. The long histories, the past grievances, the careless gestures or phrases can all contribute to a combustible mix. Sometimes tensions bubble up simply because people’s lives are busy, or a shift in circumstance generates unexpected demands. And then sometimes there is a troublemaker in the crowd.

Unhappy people want to drag every one around them into the muck. And a common strategy is to fabricate irrelevant procedures, standards, or hoops to impose on others, then criticize them for not meeting those arbitrary demands. This tactic shifts focus from substantive issues to compliance with a contrived process. Itโ€™s like building up a whole hoopla by setting up hurdles.

Some of these tactics are well known and used through many facets of life. Take moving the goal posts. As soon as someone deserves congratulations, some new expectation is placed upon them diminishing their accomplishment. Thereโ€™s gatekeeping. A self appointed czar controls access to a group, idea or status. Bureaucratic tyranny causes delays and the classic red herring gets everyone off the topic and into some other pernicious yet irrelevant topic.

To sum it all up in a definition:

Hoopla Hurdles (n): The tactic of fabricating irrelevant procedures, rules, or requirements to avoid addressing real issues, maintain control, and generate conflict. Named for the endless, pointless hoops troublemakers make others jump through.

If you are curious as to whether the obstacles at hand are legit or Hoopla Hurdles, consider these diagnostic questions:

1. Was this rule just invented?

2. Does it solve the actual problem?

3. Would a reasonable person demand this?

4. Does it create more conflict than it resolves?

If 3+ yes โ†’ Hoopla Hurdles detected!

What you can do to placate the beast in the damaged person who would prefer to fight rather than befriend.

How to Counter Hoopla Hurdles

1. Reframe

Response: Return to the original issue

“Let’s focus on whether the policy works, not the paperwork.”

2. Expose Absurdity

Response: Highlight the irrationality

“Why does a 2-sentence petition require a PhD?”

3. Set Boundaries

Response: Refuse to play

“I’ll discuss the idea, not your 17 rules.”

4. Mirror

Response: Apply their logic back

“If I make you read 50 articles first, will you?”

5. Humor

Response: Deflate with ridicule

“Should I also sacrifice a goat under a full moon?”

Pro Tip: Combine tactics for maximum effect! ๐Ÿ†

Nifty word- mainspring

The phrase โ€œthe mainspring of the storyโ€ is a metaphorical expression that refers to the central driving force or primary motivation that propels the narrative forward. Just as a mainspring in a mechanical watch provides the energy to keep it running, the mainspring of a story is the core element that gives it momentum, purpose, and cohesion.

In life, there are often several intermingled motivations pulsing through the engine for action. But usually there is a mainspring– one impulse pulling in the lead. You would skip going to the grocery except for the turkey for Thanksgiving. And since you are there, another couple of dozen food items also end up on the metal grid at the bottom of the cart. The supermarkets have gotten wise to such things and tempt shoppers into their aisles by advertising the big bird at 77 cents a pound.

Sometimes the mainspring is a different type of impulse. Instead of competing for the lowest price, this mainspring is about giving to the most significant number. A mainspring may drive a young guy to work as a manager at a supersized grocery for a quarter century. But then things change. And the same individual, with the same set of skills, might be driven to help others by working as the manager of a food shelf.

Sometimes people hide their mainspring. They don’t want to be judged by the we they find themselves amongst. Sometimes this subversion is enacted through substitution โ€”no, I’m not buying it for prestige; I’m buying it to make my wife happy. Ok. Right.

Some mainsprings are treacherous. Fear, for instance. Fear as a mainspring can drive all sorts of damaging or wasteful actions. Fear of running out of food means you bring home too much, and it spoils. Fear of buying too much means you can’t quite complete your menu and are always falling short of a satisfying meal. And of course, fear instigated by others is ultimately responsible for some type of corruption in the system.

When trying to put a model around our messy world, first find the locus of action. Who exactly is the source of the analysis? Then find their mainspring, whether hidden or out in plain sight for all to see. Otherwise, you are just another jammerer floating all sorts of ‘we’s’ that bob on the waves of idle conversation with no direction at all.

London- a late bloomer in the water department

No one in the western world really questions whether water provision is best suited to the public or private spheres. Being hooked up to city water and sewer is unanimously considered a good thing. Was it always that way? Well- no. Londoners purchased water from private suppliers through the end of the nineteenth century.

John Broich gives an excellent history of how the desire for water provision shaped London.

His account tells how secondary cities in the British Isles adopted a municipal water system decades before the great capital on the Thames. In fact, the continued delays in accomplishing this civic feat help exemplify the many facets of interests and the levers in play. There are issues of pollution and health concerns, there are networks of private providers, and the wealthy who buy their way to what they want. There is petty jealousy and the pride of belonging to an international city. And most astonishing, there is no government structure to handle such infrastructure outside of the walls of ancient London.

For provincial water reformers, the principles on which the administration of water was based-as well as the engineering principles on which water provision was based-were meant to make their cities more modern in the sense expressed by Avery, the Birmingham councilor.

“When water is under the control of private companies, the chief desire of the directors is to obtain good dividends,” said a Bradford town councilor in 1852. “When the Town Council possesses the works,” he continued, “their chief object is to make the works instrumental to the promotion of cleanliness, the health, and the comfort of all classes of citizens.”57

Water administration by a directly representative body was to provide an obvious contrast to the commercial companies that made independent decisions about water quality, abundance, and price based on the profit motive.

It is an excellent story depicting the nature of what is public and what is private. For a literary companion piece, consider reading Dickens’s Bleak House.

Listen to Grumpy (cont 2)

There’s truth in this phrase.

There is no blob of โ€œgovernmentโ€ money, or โ€œpolicyโ€ that can make something affordable for one without making something else less affordable for another.

So if tenants get immediate relief from a rent freeze, where does that money come from?

Those outside the business may think that this will trigger a direct transfer from a wealthy landowner. Structurally this is an impractical notion. Even for those who have equity, it is just that: wealth tied up in the value of the property. It is not cash that can circulate and pay bills.

But in most all cases, the funds that come in from rent are pegged to go out to another obligation. This might be property taxes which are known to increase every year. This might be to a bank that financed the purchase of the property. And the insurance company which provides property isurance as required. This might be to a utility company. Each of these obligations have recourse for non-payment which ultimately leads to their making first claims on the income.

The funds which subsidize the rent freeze are most likely to come from monies intended for repairs and maintenance of the property. These vary from tasks that are good to do but not urgent, to things that if defrayed cause additional costs, to things that need immediate attention like a leaky pipe or a furnace outage. To give an idea of the number of routine items involved in the care of real estate, consider this post.

Over time, two things tend to occur. First, the new landlords with all their positive energy and desires to get ahead can’t maintain a financial foothold and leave. Other longer term owners prioritizes the most important fixes but let the cosemetic upgrades go. Over time more and more of the longer term components age, yards get overgrown, appliances become run down. The housing stock deteriorates.

The neighborhood at large is depreciated by blight, taking a little chunk of equity from every property owner nearby.

Listen to Grumpy (con’t)

The biggest losers of rent control are the young, the mobile, the ambitious, immigrants, and people without a lot of cash. If you want to move from Fresno to take a job in San Francisco and move up, and you donโ€™t have millions lying around to buy, you need rentals. Rent control means they are not available. Income inequality, opportunity, equity, all get worse.

In this paragraph, John Cochrane begins to draw lines around groups of people who will lose out under a rent-control, a policy that favors those who have established leases with landlords.

The reader can quickly imagine a young person being squeezed out of houisng by the combination of entry-level pay and bulked-up rent. The surcharge is necessary to balance out the rent-controled units. That’s the persona that comes to mind and it is the one the author intends to convey. But wait. What about the just-out-of-school coders and engineers that are swooped up by the tech companies?

These kids are paid a lot money. They are can choose where to live without much concern as, most often, they have no other attachments. They all live together in some big tech hub, often times leaving their childhood communties behind. They no longer have other points of reference like a brother who took up plumbing, or grandparents on fixed income. Not only do the have the cash flow to spend they are not being reminded that others do not.

One descriptor is not enough to form a group. To say the population of Minnesota has remained constant is light on details. Susan Bower, the state demographer, explains some of the demographic breaks down in Eden Prairie, a SW suburb of the Twin Cities. At the presentation she notes the the state loses 5,000-10,000 people a year but it is made up through international immigration. In other words, the people who leave have no concerns regarding rent control are replaced by a group who are disadvantaged by rent control.

To be efficient, matching people in consideration of their stage in life with their housing needs is best. Policies which keep people in place or discourages them from moving up, moving closer to employment, moving to a stronger school district, moving closer to support systems and so on are detrimental.

Learn from Grumpy

The Grumpy Economist has another great post, this time about rent control. For those of us in real estate, it’s an irritating topic. The errors in the use of price controls are numerous. Using John Cochrane’s article as a road map might be interesting to illustrate this point. Let’s start with this paragraph.

Sure, โ€œsharply rising rents and utility bills wreak havoc on family budgets,โ€ if the families donโ€™t follow the screaming market signal to move. (Which is not painless, for sure. Incentives never are.) But the money comes from somewhere. Rent controls and energy price caps wreak havoc on landlord end electric utility budgets.ย The money must come from somewhere.

The claim is that rents are rising sharply. The reader pictures a Scrooge-like figure pounding on the door of a cowering family of four, announcing a ‘sharp’ rent increase (extra dollar symbols for emphasis), while behind this embodiment of the typical landlord stands an eviction notice ready to be served. I’d love to see numbers to this effect. I challenge that the ‘sharp’ rent increases are occurring at lease renewals.

Large corporate landlords might have a set policy of annual increases, but they account for only 3-4% of proprietors. Landlords must juggle the cost-benefit of increasing rent. As 80% own and manage the units, they calculate the costs, time, and uncertainty of a new tenant. This is weighed against a 3% increase on $1,100 or $33/mo in additional income. Needless to say, many landlords will forego a rent increase to keep a good tenant.

These subtleties are lost in real estate analysis, where all the numbers are averaged as if there were one typical renter, one typical landlord, and one typical property. This couldn’t be further from the truth. There are whole economies of renter groups. There are students who will have negative income before they join the workforce; there are singles with high-fluting jobs and no other responsibilities; there are single parents; there are couples with kids in a city just for a bit; there are elderly on fixed income with low mobility; there are recently divorcees looking for a glamorous downtown lifestyle.

Are all these groups to receive the same treatment? The same concern for their monthly budgets?Rent controls are initiated at the city level. Every group of renters would receive the benefit of a market-restrained obligation. Is that the intention?

Landlords are also assumed to be a certain type. The persona has tremendous equity in their property, no debt, and other cash they are stashing like squirrels do with acorns in the fall. And certainly some landlords fit this description. But more likely than not, the landlord has a mortgage and obligations against their time. The new entrants to the field, those trying to get ahead by getting a foothold in real estate, are undoubtedly the ones who need to make the cash flow.

When property taxes, utilities, or the cost of hiring labor rise, a landlord has no way to respond until a lease comes up for renewal. Rent control tightens this squeeze, leaving property owners caught between increasing public demands funded through taxation and their limited ability to recover those costs through rent. The first to be pushed out are often the newcomersโ€”the small, aspiring owners who bring fresh energy and ambition to the market, but lack the cushion to absorb sustained losses.

Lesson number one. Averaging is a mistake. Assuming there is only one type of each actor in this economic trade of money for lodging makes for an impossible conversation.

A book about risk

Iโ€™m quite enjoying Allison Schragerโ€™s accounts of how people navigate risk in their lives. The book is full of stories about poker players and surfers, as well as bankers and bond traders.

Although the framework follows the model of an individual making a decision, in the background there are many communal references. This passage is about the paparazzi partnerships.

Since the best shots come down to being in the right place at the right time, photogs often form teams or alliances to share tips and sometimes royalties to increase the odds or payoffs they’ll be in that place. In 2003, Baez founded a group called PACO, “like the jeans,” combining the words “paparazzi” and “company.”

PACO consisted of ten experienced photographers. They traded tips on where certain celebrities hung out and when. So if Baez spotted a celebrity eating lunch at a trendy restaurant, he would alert the other PACO members. He says, beaming with pride, “Back in the day when we’d show up, the other guys would say, ‘Oh no, here comes PACO, because we were the best.”

Family ties show up in several of the vignettes. Somehow the prospects of his first love trump a degree from Stanford. When talking about the business executive Arnold Donald, she recounts.

It was a way to get both worlds: the liberal arts experience he wanted and the Stanford engineering degree.

During his sophomore year at Carleton, Donald married his college sweetheart, who also received a place at Stanford’s engineering school but no scholarship. Rather than take on the financial risk of student loans, they went to Washington University in St. Louis, where they both had scholarships.

And background players can even accumulate into a whole world of their own. For the poker player, thereโ€™s a benefit to syncing with the subculture.

The world of professional poker is a unique subculture-complete with special outfits and lingo-that appears foreign to outsiders. Its obsessive fan base watches games on television or in person for hours, is preoccupied with stats, and gambles on the players and games. Winning at poker comes down to luck and skill. Luck is being dealt a winning hand. Skill is knowing how and when to bet, and having the discipline and ability to infer what other players are doing.

Although not explicitly described or measured in terms of their influence, social relations, network effects, family ties, and workplace mechanics are ever-present in Schrager’s stories on risk.

Who can tax?

There are laws about such things. The authority to take a cut off a sale or charge or demand an annual fee for property, whether homes or cars, needs to be officially granted. The funds travel from individuals to a fund for government officials to distribute out for public commitments.

But there are other things local governments do that act as a tax. There are all sorts of city permits required to replace a hot water heater or install a deck. When a builder applies for approval of a subdivision, the city council may say that is all fine and good as long as a sliver of the land is threaded through as a trail and a chunk of green space in the middle is spun up into a playground. The release of land is a tax on the developer. A good one mind you but still a relinquishing of an asset.

What would be the difference between a favorable tax and a verging-on-illegal tax?

Having a developer build in parks and trails at the time of development leaves an asset for the new owners directly, and for the city at large for those who travel further for recreation. This flow of money from a private company back to the community, for the use of all residents, seems to fall in the spirit of the arrangement. It is a particularly timely ask since retrofitting older neighborhoods with parks and trails is difficult and impractical.

Consider another example. A builder wants to convert a five-story building in a historic district in a significant US city. There are extensive regulations associated with the age and history of the area. There are also regulations in place to meet current environmental concerns. Without spending the time to delve into every detail, the end result is that the builder must install solar panels on the roof of the building, which cannot be serviced by the building due to its age and preservation requirements. The building’s infrastructure cannot effectively utilize the energy output from the solar panels.

The final agreement is to hand over ownership of the panels to the utility company. Their maintenance and output will now be maintained by a completely separate entity, even though they sit atop the developer’s project and the developer’s bottom line had to muscle in their expense.

Doesn’t this seem like a direct transfer of funds from the builder to another semi-private company? Doesn’t it seem like a redistributive tax or at least a subsidy? Does the municipality this type of taxing authority?

John Cochrane looks for a new framing

I’ve been following John Cochrane’s blog, “A Grumpy Economist,” for a while now. I love the self-depricating title and, of course, the material. In a recent Substack post, he tackles the question of climate change, government subsidies, and the groups of people who win and lose.

In short, he is saying that the massive subsidies that all US taxpayers have been funneling into electric vehicles are not generating the intended return. Not at all. They are bills being scattered in the wind.

OK– but how? and why? And what else should be considered? In short, what is the new framing that would better capture the intentions, levers, and incentives to address this issue?

Consider first the who. There are the EV activists. They have provided voice to the issue of climate change. And have been successful in securing financial subsidies from US citizens at large. The population of the US is the greater group. They too care enough to syphon off funds for the cause. But John Cochrane points out that the who is really the global population. Climate change flows over political boundaries. Reductions of pollutants in California can easily be negated by activity elsewhere on the globe.

The implication here is that to solve the issue of climate change, the anchor of discretion lies in with global population. To have an impact, activity across this group must have a measurable effect. Otherwise, a small group of earnest adjusters will work and sacrifice (in the EV example, US taxpayer dollars) to no beneficial ends. Lots of effort. Lots of signaling. No results.

Lastly, Cochraine mentions time. The time frame over which the analysis is best observed is one hundred years. To bully and berate neighbors into small gestures in the name of climate change is counterproductive, he says. The perspective is global, marked over centuries, and thus requires intentions and drive measurable within that framework.

Is that Work?

If you follow this site, you know that it proposes activities that enhance and advance humans, fall into two buckets. There is private, unfettered activity that severs at time of transaction, free of social encumbrances or infringements. Then there is activity which supports the welfare of groups of people amongst whom there are typically numerous overlapping objectives. There is the private sphere where much of commerce lives, and there is the public sphere, kind to the nurturing of children, the prevention of crime, and the enforcement of norms sometimes formalized in into laws.

In the private sphere, people sell their time and talents. This is called labor. The public sphere is often dependent on what is termed volunteerism or unpaid labor. But I like to call it work. Below is a post from The Marginal Revolution site, which confirms that unpaid labor is more than helping an elderly person across the street or reporting a suspicious person in the alley. The number of hours contributed by this couple in civic engage prompted putting new technology to the task.

Start quote:

Solve for the NIMBY equilibrium?

by  Tyler Cowen November 12, 2025 at 3:08 am in 

We are just beginning to think these issues through:

The governmentโ€™s plan to use artificial intelligence to accelerate planning for new homes may be about to hit an unexpected roadblock: AI-powered nimbyism.

A new service called Objector is offering โ€œpolicy-backed objections in minutesโ€ to people who are upset about planning applications near their homes.

It uses generative AI to scan planning applications and check for grounds for objection, ranking these as โ€œhighโ€, โ€œmediumโ€ or โ€œlowโ€ impact. It then automatically creates objection letters, AI-written speeches to deliver to the planning committees, and even AI-generated videos to โ€œinfluence councillorsโ€.

Kent residents Hannah and Paul George designed the system after estimating they spent hundreds of hours attempting to navigate the planning process when they opposed plans to convert a building near their home into a mosque.

Here is the full story.  Via Aaron K.

Me again: The comments section is replete with the potential downside for using technology in this manner. But I say the powerful leverage lies in understanding how people work in their communities. Consider how many hours are required for all the multiple support programming in play, every day, in the USA.

50 year mortgages and the nature of things

A proposal for a 50-year amortization mortgage aims to make homeownership more affordable by spreading payments over a longer period, thereby reducing monthly costs. However, the trade-off is that borrowers would pay substantially more interest over the life of the loan and build equity more slowly. Advocates argue it could ease housing affordability pressures, especially in high-cost markets, and improve access for younger or first-time buyers. Critics counter that such loans may inflate housing prices further, extend household debt burdens, and delay financial stability. Overall, a 50-year amortization reflects a policy tension between affordability and long-term economic prudence.

Hereโ€™s a clear example comparing 30-year vs. 50-year amortization on a $350,000 home, assuming a fixed interest rate of 6% and no down payment (to isolate the amortization effect):


Loan TermMonthly Payment (Principal + Interest)Total Paid Over TermTotal Interest Paid
30 years @ 6%$2,098$755,280$405,280
50 years @ 6%$1,870$1,122,000$772,000

The 50-year loan lowers the monthly payment by about $228, but total interest nearly doubles over the life of the loan โ€” a very expensive trade-off for the borrower in the long run.

Adjustable-rate mortgages offer another way to reduce payments, at least initially. ARMs typically begin with a lower introductory interest rate (for example, 5% for the first five years on a 5/1 ARM) before adjusting annually based on market conditions.

While ARMs can make early payments comparable to or even lower than a 50-year fixed loan, they carry rate-reset risk โ€” payments can rise sharply if interest rates increase. Currently, availability is moderate: most lenders still offer ARMs (3/1, 5/1, 7/1 terms), but after the 2008 crisis, underwriting standards became stricter, and long-term fixed loans remain more common.

I’m all for offering a wide variety of financial instruments for consumers to use in the purchase of a home. However, over the long run, I don’t feel that the 50-year amortization allows for a sufficient paydown. As people navigate their lives, they count on the equity that accumulates through price appreciation and mortgage debt reduction. A healthy market is fluid, where people can buy and sell without being constrained by excessive debt.

I’ll make the claim that people find the market unaffordable because they don’t want to buy what is affordable to them. This is difficult to demonstrate without specifics. But each housing market has a range of price points. If folks are paying rent, then they are more likely to be able to acquire a property with a similar payment. They simply don’t want to live in that particular spot, or do the repairs necessary to improve it, or view it as a starter home from which they will move on someday.

Is purchasing a medical proceedure the same as buying a car?

I would argue no, for several key reasons.

First, a medical procedure’s success depends heavily on patient participation. The outcome hinges on whether patients follow their physician’s instructions, avoid harmful foods or activities, commit to their rehabilitation, and make necessary sacrifices for optimal recovery. A car, by contrast, operates on a predictable maintenance scheduleโ€”oil changes every 7,000 miles, new tires at 50,000 milesโ€”and doesn’t require active participation each time you get behind the wheel to function properly.

Second, evaluating medical outcomes is inherently subjective, shaped by individual expectations and varying standards of success. A tangible good like a car, however, has objective, measurable qualities that remain consistent regardless of who’s assessing it or observing it.

Finally, medical procedures carry inherent risk. Unlike most purchases, where you start at a baseline and gain utility, healthcare interventions don’t guarantee positive outcomes. A procedure can result in complications requiring additional interventions, meaning you could begin at zero and end up worse off. There’s always the possibility of a negative outcome, which fundamentally distinguishes healthcare from consumer goods.

For these reasons, healthcare tends to be heavily influenced by social groups. Peer pressure encourages people to take care of themselves. Role models who demonstrate how to go the extra mile can influence and encourage patients to do the same. The extent of care may be directed in part by group expectations. But, the most significant risk with this over a car or other tangible goods, is that lack of care or poor care can cause the patient to go backwards and incur even more costs both to the body and the pocketbook.

Land claims and the development of administration

But it required more than an annual tour to administer and exert royal power throughout Scotland. The size and geography of the kingdom required the representation of royal authority at both regional and local levels. This was carried out by two tiers of royal officials.

MORMAERS

Mormaers were powerful territorial magnates and their extensive provinces were the primary level of royal administration in eleventh-century Scotland. Mแป›rmaer means ‘great steward’ and this Gaelic title is first recorded in 918, although its origins are unclear. The absence of mormaers in Ireland indicates that this office was not introduced with the migration of the Dรกl Riata or from Ireland at a later date. Instead, the predominantly north-eastern distribution of the Scottish provinces recorded as having mormaers suggests that this office had Pictish origins. It may have originated in the provincial kingships that lost their royal status as the kingship of the Picts became increasingly centralised.

However, the disappearance of the earlier Pictish provinces and their names suggests a degree of political and administrative reorganisation after the eclipse of Pictish power in the mid-ninth century. Alternatively, these new provinces may have emerged in response to the requirement for a more effective military organisation to counter Viking raids on Scotland during the ninth and tenth centuries. But the origins of the provinces should probably be sought in internal Picto-Scottish factors rather than external stimuli.

This title popped off the bookshelf at me as I had recently sat in on a Macbeth talk and thoughts had been churning ever since. Intrigued by the play I sought to learn more. And this slim book offered that. And, unexpectedly, the text veered into the social structures of the day. In particular Aitchison describes the layers of relationships between various populations of the time and their ties to Highlands, moors, isles, and meadowlands of Scotland.

Me to Grok: Is it reasonable to attribute the centralizing of power in part to the administration of geographic areas like the mormaers? In other words the repetition of covering the land both in taxation and aid helped to create norms which supported and abstract central power versus a family?

Grok: Yes โ€” absolutely reasonable, and youโ€™ve just named the single most powerful engine that turned Anglo-Saxon (and Scottish) society from โ€œfamily-firstโ€ to โ€œking-firstโ€.

The short answer is:

Every time a kingโ€™s officer walked the same geographical circuit to collect tax, raise troops, or hold court, he taught the locals a new reflex: โ€œMy duty runs to the shire, not to my cousin.โ€

Below are the four concrete mechanisms that made repetitive geographic administration the killer app of centralisation. Iโ€™ll keep it crisp, with one Anglo-Saxon and one Scottish example for each.

1. The map replaced the family tree

โ€ข Mechanism: The same official (reeve / mormaer) visited the same villages every year on a fixed route.

โ€ข Anglo-Saxon: The shire-reeve rode the hundred circuit at Michaelmas to collect the farm of one night (food-rent). Villagers saw the same face, carrying the same rod of office.

โ€ข Scottish: The mormaer of Moray toured the same thanages every spring to count ploughs for the cain (render in cattle). After three generations the route was more famous than any genealogy.

2. Tax created a shared calendar

โ€ข Mechanism: Everyone paid on the same day โ†’ everyone felt the same obligation.

โ€ข Anglo-Saxon: Domesday Book (1086) records hide assessments that had been frozen for 150 years. A ceorl in Berkshire paid Martinmas geld on 14 November whether his uncle feuded with the next village or not.

โ€ข Scottish: The Conveth payments (barley + cheese) were due on Lammas (1 Aug) across the whole mormaerdom of Buchan. The date glued together men who had never met.

3. Military service was territorial, not kin-based

โ€ข Mechanism: One man per 5 hides (or one per davoch in Scotland) turned up with spear and 40 daysโ€™ food.

โ€ข Anglo-Saxon: The trimoda necessitas (bridge, fortress, fyrd) was owed by the land, not the bloodline. If your cousin dodged, the reeve fined the whole vill.

โ€ข Scottish: David Iโ€™s charters (1124โ€“53) demand Scottish service from every davoch in Moray. A mormaer who tried to raise only his own cousins was laughed at.

4. Courts met in the same place on the same day

โ€ข Mechanism: Predictable geography โ†’ predictable law โ†’ abstract king.

โ€ข Anglo-Saxon: Hundred court under the holy oak every four weeks; shire court at the kingโ€™s hall twice a year. Suits were โ€œshire vs. shireโ€, not โ€œclan vs. clanโ€.

โ€ข Scottish: The mormaerโ€™s airidh court at the stone of Forglen sat every Beltane. A theft in Cullen was judged by Buchan law, not by the thiefโ€™s great-grandmotherโ€™s kin.

Mini-experiment you can run in your head

Imagine two villages 20 miles apart:

โ€ข Year 750: Each is run by its own kindred; feuds last decades.

โ€ข Year 950: Both send 1 man per 5 hides to the same shire-reeve at Reading; both pay geld on Martinmas; both attend the same hundred court under the oak.
โ†’ By 950 the shire is a louder identity than the kindred.

One-sentence summary

The kingโ€™s tax-collector and war-reeve walked the same roads so often that the roads themselves became the new skeleton of loyalty, and the family tree withered to a decorative twig.

Scottish post-script

The mormaers are the perfect bridge case.

โ€ข 9th century: they were super-chiefs of giant kindreds.

โ€ข 12th century: they are earls who hold regalities by royal charter and collect the kingโ€™s cain in coin.
The turning point? The annual ride around the thanages, repeated for five generations.

So yes โ€” geography, drilled into muscle memory by taxation and aid, was the quiet solvent that dissolved tribal solidarity and built the abstract state.

Me again. Whatโ€™s important about the details written here in the backdrop of Shakespeareโ€™s famous villain, is it demonstrates how many generations or hundreds of years it took to disengage a population from clan ties to administrative loyalties.

Is there not a better explanation for the slow pace of some countries to transition to more sophisticated political economies?

Professorโ€™s presidential challenge

On Fareed Zakariaโ€™s show, GPS, this morning, guest Mai Hassan throws down a Trumpian challenge.

Finally, hundreds of civilians were massacred this week in Sudan’s Darfur region, a brutal escalation of the ongoing war in that country. Mai Hassan, a political science professor at MIT, sat down with Fareed to discuss how it got to this point. 

She suggests that the US president has the power and influence to bring a peaceful solution in Sudan. At the margin, this conflict offers a better chance at that elusive Scandinavian prize.

That was then- This is now

This catalogue arrived in my mailbox today. Are algorithms not enough for the massive online store? Amazon is using print marketing materials and supporting the United State Post Office to reach customers. Oh my!

Or what about the demise of the bookstore, so hardily predicted fifteen or more years ago?

Barnes & Noble opened more new bookstores in a single year than it had in the whole decade from 2009 to 2019. The bookseller expects to open over 60 new bookstores in 2025.

Bigger is better.

 The new Minnetonka Barnes & Noble will cover over 18,000 square feet, including a B&N Cafรฉ, and carry all the best books, as well as a wide range of toys, games and the usual paper and gifting items found at Barnes & Noble.

A social model of Trick-or-Treat

Everyone laments the commercialization of the holidays. How tacky! How capitalistic! So why do these distasteful traditions continue to weave their way through our culture? Let’s investigate the social upsides to see if there are compensating factors.

First, it is necessary to identify the parties involved. There are the vendors of fun-size treats. These folks are unabashedly money-oriented organizations. There are parents who dutifully open their front doors and dig handfuls of treats out of their stash to parlay them into the bulging pillowcases or plastic pumpkins presented by the costumed youngsters yelping: Trick-or-Treat! These folks are subsidizers. They purchase the candy with no designs on a pecuniary return for their money. And then there are the kids. One might think they have no investment, but that’s not true. Their delight at the mystery of the evening, at the intrigue of mask-wearing, and at the innocent charm they exude is a draw to those around them.

For a proper evaluation, one must anchor the focus of discretion. This tracks which group is being considered in the balancing of accounts. Let’s start with the stores. They are commercial ventures, supplying items their customers demand in return for enough to pay their expenses and a little more. If Halloween went to the wayside, they would simply move on to something else. There seems to be very little to model here in terms of the social sphere.

Now, let’s anchor the view from the adult participants. They lay out the cash– so what do they get? They bring joy to their kids and perhaps a little to themselves. The event might rope in grandma and grandpa, a couple of worthy backstops in the activities of family life. Lastly, the business of activity on the streets brings out a Jane Jacobsian benefit. So, parents and adults can gain in private pleasure, family bonding, and community spirit.

Lastly, consider the kids. It might seem like a windfall for them. However, probably more than one parent keeps the incentives of a successful Halloween as a behavior modifier. So they too pitch in with a bit of work when it comes to supporting the holiday.

For the foreseeable future, the balance in favor of the social gains indicates a continued future for this spooky festivity.

Public says no Payment for rescuing Private parties

Usually actions to shore up safety are drawn from the public purse. But sometimes private actions pull this obligation out of the public sphere.

A Snowstorm Blew Over Mt Washington. More than 20 Hikers were trapped

More than 20 hikers needed to be rescued from the flanks of Mount Washington in New Hampshire after wintry conditions swept across the famed peak on Saturday, October 25.

โ€ฆ..

โ€œMultiple people have arrived at the summit the last few days very unprepared for winter and required assistance. Be โ€˜wildly Responsibleโ€™ and please do some research on current higher summits weather and bring everything needed to hike in winter conditions or just hike another day,โ€ writes the New Hampshire State Park on Facebook.

Personal responsibility in this case means personal repayment.

The New Hampshire fines stem from a piece of legislation called RSA 206:26-bb, which states that โ€œany person determined by the department to have acted negligently in requiring a search and rescue response by the department shall be liable to the department for the reasonable cost of the departmentโ€™s expenses for such search and rescue response.โ€

What you donโ€™t know yourself

A home is a complicated purchase. The variables are numerous. The structure is what everyone thinks of first: bedrooms, bathrooms, beautiful kitchens. There are niche items, such as screened-in porches or swimming pools. There are external demands, such as level lawns and striking views. All that along with the nuts and bolts of square footage, the year the home was built, and the number of garage spaces go into the assessed values as calculated for tax purposes.

But there’s more that goes into the process of the home purchase at the time of the transaction. Market conditions, interest rates, and the time of year impact the buying and selling process. The condition of the home can certainly swing a property from very desirable to manageable, only for the most hearty investor. Sometimes the right buyer shows up and eagerly signs for the home in part because the semi loaded with their household belonging is on the way and will need to be unloaded, or parked at a considerable expense.

Real estate is a complicated product. So when a client looks over their showing sheet and wants to talk price, it is important to remind them that is set between buyers and sellers. That as participants in the market they are the best judges of the price based on the path that has led them to the home. As their agent, we can show how the numbers fall within an acceptable range of what the market has recently born out. But ultimately it is up to them to risk missing out by staying low or having buyerโ€™s remorse by going high.

As Pete Boetkke recently wrote in What Hayek Understood About the Unknowable Nature of Markets:

But the dynamics of a market arenโ€™t a given to be applied as one thinks wise when powerful people want to mandate lower rent or produce more computer chips. They must be generated, discovered, utilized, and conveyedโ€”constantly adapting and adjusting to the changing circumstances of economic life. โ€œThe continuous flow of goods and services,โ€ Hayek wrote, โ€œis maintained by constant deliberate adjustments, by new dispositions made every day in the light of circumstances not known the day before, by B stepping in at once when A fails to deliver.โ€

Although these words are generalized, the ideas are there. It is a process of discovery that encourages or dissuades people as they navigate their choices amongst the homes for sale. And when they identify one that offers more of what they really desire with fewer compromises on items that bother, then they move with confidence in securing the transaction. Often, until that point in the process, they don’t know what they want themselves.

Number Nuance

Yesterday’s post showed off a range of house prices across the country. Since housing expenses are the largest portion of most people’s budgets, they greatly influence people’s standards of living and disposable income. To live a lush life in St. Louis might only allow you to squeak by in Salt Lake City.

For that reason, itโ€™s funny when someone brags about their โ€œsix-figure salaryโ€ โ€” and then you find out they live in Washington State. Sure, congratulations on your $100K, but thatโ€™s basically a modest Minnesota income with prettier mountains and pricier coffee. Thereโ€™s a strange amnesia that kicks in when people talk about money across states, as if groceries, gas, and rent were all federally standardized.

Then thereโ€™s the gross-up crowd โ€” those who love to quote the full sticker price of their income, conveniently forgetting everything that comes off the top. Taxes, insurance premiums, pension contributionsโ€ฆ not to mention the hidden perks that donโ€™t show up on a pay stub: flexible hours, remote days, or a workplace that doesnโ€™t mind if you pick up your kid at 3 p.m. Some of the most valuable parts of a job canโ€™t be cashed out โ€” theyโ€™re lived.

Each region and industry really runs on its own microclimate of opportunity. What looks โ€œlow payโ€ in one city can mean stability, a yard, and free weekends somewhere else. Meanwhile, other jobs look golden until you notice the 70-hour weeks, commutes, and housing markets that never quite forgive you.

And then, of course, there are our Canadian friends. Always happy to tell you about their million-dollar home โ€” in Canadian dollars, around $720K USD. Not quite as flashy a number. But don’t worry, weโ€™ll do the math for you, eh?

MT is up to $495!

California is always high. I remember when Colorado pricing surged ahead of Minnesotaโ€™s, but thatโ€™s been like that for a while now.

Connecticut seems low for the east coast. And Alabama is a bargain! Especially since their school system is starting to put out some strong scores.

Which stateโ€™s average price of housing surprised you?

Historical Fact of the Day- Zoning

Zoning, a means of controlling the land and housing markets by dictating acceptable uses for particular parcels of land, was invented during the 1910s and spread to most American cities by the end of the 1920s. St. Paul and Minneapolis passed their first zoning ordinances
early in the 1920s. The goals of zoning were similar to those of the building permit and inspection programs: to promote public health and safety, and to preserve property values. Zoning is an effective control mechanism, but it is essentially a preventive tactic.

Past Choices/Present Landscapes

Real Estate Books

There arenโ€™t many. Thereโ€™s the โ€˜how to get rich in real estateโ€™ type of literature, which is only vaguely helpful to those with no real estate experience and, in equal measure, misleading. There are books developed to help salespersons pass the required testing to obtain a real estate license. There’s material on all sorts of financial instruments used to finance property. But I’m not talking about that type of thing.

Iโ€™m talking about the manner in which real estate features in peopleโ€™s lives.

Judith Martin, a former professor of geography at the University of Minnesota, wrote Past Choices/Present Landscapes: The Impact of Urban Renewal on the Twin Cities. This project spotlights some of the effects I like to talk about. It focuses on the massive slum-clearing and subsequent redevelopment of large sections of inner-city property. In hind site Martin points out:

Much has been written about the ideas and the implementation of the urban renewal program in the United States during the 1950s and 1960s. Most of this literature views urban renewal as a program that: (1) worked to the disadvantage of people most in need of improved housing -a great deal of substandard housing was removed, but a relatively small amount of low-income housing was constructed;(2) was a boondoggle for developers-they were able to acquire land inexpensively from city authorities, and often made large profits on the projects built on this publicly acquired land; and (3) focused on
economic development issues C’let’s fix up downtown”) at the expense of housing and neighborhood concerns (Anderson 1964; Hartman 1964; Gans 1965).

Viewed in retrospect, much of this criticism is valid, but it does not tell the whole story. Critics have portrayed planners who developed and implemented urban renewal programs as heartless beasts who turned a deaf ear to the real needs of “the people.” But it is hard to see most renewal officials as greedy and profiteering, or as consciously
trying to exercise their power over helpless city residents. There are, for example, no notable cases of renewal officials growing rich working on these programs. If anything, the views of those who implemented urban renewal programs in the Twin Cities and elsewhere can be considered somewhat naive. They assumed that renewal could be
accomplished quickly, that private developers would clamor for the opportunity to build in available areas, and that the renewal process could be carried out with relatively few snags. None of these assumptions proved to be true.

Real estate is a tricky wicket. If people want to follow along, they need to, as Judith indicates, read the whole landscape and not cherry-pick a brief situation in the misty flow of time.

Decay

It takes a long time for a house to completely depreciate. Many of its structural elements have lives longer than decades. Exterior features in like roofs, siding, windows, and doors may need little maintenance for years.

Yard work left to run free may give the appearance of a property left to nature. But eradicating the growth is of little cost compared with replacing all new heating and cooling systems, water heaters and appliances. Most of these have an average life of 12-15 years. And then, of course, there are the plumbing and lighting fixtures that are often replaced for both cosmetic and functional reasons.

At each phase of putting off a replacement and trying to patch things up and get by, a debt of maintenance is created. If the property were to trade hands, a new owner might be willing to take on a few additional repairs for a concession on price. At some point (and what would that be?) the average buyer turns away. There’s too much to do. There are too many lurking money pits under the subfloor in the bathroom or behind the paneling in the lower level.

This is when the structure’s value falls to zero. The parcel will only command the price of the land it sits on, with an adjustment for the cost of debris removal. But it takes decades to get to this point. The built world is durable, and there are many opportunities for rejuvenation.

Mobil Homes

There continue to be mobile home parks across the metro offering one of the most affordable form of housing. The structure is considered a vehicle and licensed as such. The home is anchored on a lot in a mobile home park and rent is due every month in a similar fashion to association dues. People like to talk about tiny homes now. Still, manufactured homes can be reasonably constructed in a factory and meet the same quality and amenities as RV’s, another acceptable form of shelter.

:Here are some current listings and recent sales:

Few mobile home parks rise to the level of civic engagement that can be seen in Landfall Terrace, a community on the eastern side of the metro. As with many good things it starts with its history.

James and Mitzi Olson used to own all of the land in Landfall. They moved here in 1953 into a cottage that was hardly better than a log cabin.ย …The Olsons had lived in a mobile home during World War ll and knew that there was a shortage of affordable housing, so they developed their site into a mobile home park. As it was on the early highway between St. Paul and Hudson, Landfall developed several businesses, including a truck stop, restaurant and nursery, most of which left when Interstate 94 was put through and access became limited.

Often successful things are born out of a basic need of local people. But it is only through nurturing and ongoing maintenance that group projects survive. Especially one a s successful as this.

Landfall is a city in Washington County, Minnesota, United States. The population was 843 at the 2020 census and it is the smallest community in Washington County in terms of area. It lies on the eastern shore of Tanner’s Lake on Interstate 94.

Landfall is an incorporation of a manufactured home community, contributing to its reputation as the most affordable community in the Twin Cities. In 2008 & 2010, the city was named one of the 100 best communities for young people by America’s Promise.

Landfall is one of only two incorporated cities in America that consist primarily of manufactured housing. 

Plat map from 1884

I was digging around the county historical society lately because I thought it would be fun to find where my relatives made a land claim when they arrived in the US. Plat maps, which track ownership, were not updated on a routine basis in the days of primary forests and pioneer wagons. This one was done in 1884, and the next printed update didn’t get published until 1902. Even though the family of five children, all born in Norway, are said to have arrived in 1874, the family name has yet to appear here. It does in 1902.

What you do notice is the number of parcels denoted by St. Paul Minneapolis and Manitoba Ry Co. or St. P. M. & M. Ry Co. These parcels were owned by the railroad built by James J. Hill. The school land is also a major player. There were 168 schools in Leaf Mountain Township. The forty acre plots with no names listed, or US, are the ones open for homesteading. It seems the US government priorities rolled out in that order: transportation, education, and homesteaders to make it all work.

Cabin from nearby site built in 1890

Shop Talk

A convo with ChatGpt: What does ‘shop talk’ mean

ChatGPT said:

โ€œShop talkโ€ means conversation about work or a particular profession, especially when it happens outside of work or in social settings.

It often implies that people are talking about technical details, jargon, or inside-baseball topics that only others in the same field would fully understand โ€” sometimes to the boredom of outsiders.

Examples:

  • โ€œLetโ€™s not get into shop talk at the party โ€” nobody else here wants to hear about accounting software.โ€
  • โ€œWhenever those two doctors get together, itโ€™s all shop talk.โ€

So, itโ€™s basically work-related conversation among colleagues or professionals, often used with a slightly negative or teasing tone (โ€œugh, enough shop talk!โ€).

You said:

Name three reasons why an outsider does not follow the insider baseball.

ChatGPT said:

Here are three clear reasons why outsiders often donโ€™t follow inside baseball (or shop talk):

  1. Specialized Knowledge or Jargon โ€“ Insiders use technical terms, acronyms, or references that make sense only within that field. Outsiders lack the background to decode the language.
    Example: A software engineer says, โ€œWe just migrated from monolith to microservices,โ€ and a non-tech person hears gibberish.
  2. Different Context or Priorities โ€“ Insiders share a sense of whatโ€™s important in their work โ€” the stakes, the rivalries, the subtleties. Outsiders donโ€™t know why those details matter.
    Example: A debate about which research framework is superior means little to someone outside academia.
  3. No Emotional Investment โ€“ Insiders are personally invested โ€” their reputations, routines, and identities are tied to the topic. Outsiders lack that emotional hook, so the conversation feels dry or trivial.
    Example: Two chefs passionately argue about knife brands while everyone else at the table just wants to eat.
You said:

Take these three reasons- are they not the features of an institutional network?

ChatGPT said:

Thatโ€™s an astute connection โ€” yes, those three reasons are very much features of an institutional network.

Letโ€™s unpack that:

  1. Specialized Knowledge or Jargon โ†’ Bounded Communication System
    Institutions build and maintain their own languages โ€” technical terms, shorthand, and shared references that mark belonging. This linguistic specialization not only allows for efficiency among insiders but also creates boundaries that separate members from outsiders. Itโ€™s a classic form of social closure: if you donโ€™t speak the language, youโ€™re not fully in.
  2. Different Context or Priorities โ†’ Shared Frames of Relevance
    Institutional networks define what counts as important, legitimate, or meaningful. Insiders share a frame of reference shaped by the institutionโ€™s history, goals, and internal hierarchies. Outsiders, lacking that frame, canโ€™t easily interpret why certain details matter. This is how institutions reproduce themselves โ€” by shaping what participants see as relevant knowledge.
  3. Emotional Investment โ†’ Identity and Belonging
    Institutions arenโ€™t just about rules and roles; they generate emotional commitments. Peopleโ€™s sense of identity becomes tied to their institutional membership โ€” whether itโ€™s a profession, academic discipline, or bureaucratic body. That investment reinforces the networkโ€™s cohesion and its internal culture, even as it alienates outsiders.

So in effect, โ€œshop talkโ€ and โ€œinside baseballโ€ are the micro-level expressions of institutional boundaries. They show how networks of practice sustain themselves through shared knowledge, values, and affective ties โ€” precisely the stuff that makes them opaque to outsiders.

Dynamic Private-Order Institutions

From a newly minted Nobel prize winner, Joel Mokyr.

Slowly, and perhaps not always quite perfectly, British formal institutions adapted. But the same was true for private-order institutions: the rather sudden rise of country banks in the second half of the 18th century illustrates the high degree of  adaptiveness of private-order British institutions; they were not coordinated or supervised by some central authority, and no political revolution was necessary to bring them into existence. Yet once the circumstances were suitable and opportunities arose, these banks emerged almost ab nihilo. They replaced the informal activities of local merchants, notaries, and attorneys who had previously intermediated in credit transactions.

This natural and spontaneous progression of credit extension brought real estate ownership to the greater populace.

Read his insights at Ideas Mattered, But So Did Institutions.

Slow Horses- Series Review

This band of MI5 misfits shows real promise. All have backstories, with the leader of the crew showing the deepest scars of past wrongs. His assistant is haunted by tragedy with some sort of entanglement. There’s an assortment of others, including a team builder type and a digital guru extraordinaire. But it’s the two youngsters in the group– dashing and darling– who will engage the viewer the most.

After a bit of a dry spell, this series is one to look forward to for that hour of after dinner viewing!

C’mon people, still?

Check out the number of views of the YouTube shorts where historian and author Sarah CM Paine punches out a history lesson in spurts of ironic and bell clear words- 2.3 million views, 1.6M, 8.5M.

Who is she? It’s hard to know because, despite her online presence, a Google search generates no profiles written about her. Her Wikipedia page has a new photo above a brief description. Only this to stand up for a long time academic who has penned a respectable number of books.

Granted, this new exposure is due to one person- Dwarkesh Patel. He has hosted and promoted Sarah CM Paine’s material. He gets full credit. And there are pleanty of profiles written on him such as in Time or here.

What a grain elevator could say

The grain elevator was the most ubiquitous commercial building in Minnesota’s small and medium towns during the mid to late 1800s.

In most towns in western Minnesota, grain elevators were the dominant feature of the skyline 1837 Treaty | Minnesota DNR. As railroads expanded westward in the 1870s-1880s, grain elevators sprang up along every railroad line to store wheat and other grains before shipping them to Minneapolis and beyond.

This makes perfect sense given Minnesota’s economy at the time. Wheat farming dominated the landscape, and Red Wing held the title as the world’s largest primary wheat market in 1873, exporting 1.8 million bushels valued at more than two million dollars United States v. Sioux Nation of Indians – Wikipedia. Every town with railroad access needed a grain elevator to collect, store, and load farmers’ harvests onto railcars.

Typically, small services would pop up alongside the tall wooden structures. Or an eating and drinking establishment. Sometimes a church was erected down the road a bit. And for decades, the railroad infrastructure supported a node of activity in remote rural areas.

A shift occurred once the interstate system was established in the 1950s. Rail is still most beneficial for long hauls, whereas trucks carry the grain for shorter distances, typically under one hundred miles. With fewer stops, the isolated wooden elevators fell into disrepair. Often they fell for the useful purpose of serving as a training exercise for local firefighters.

The purpose of this short vignette is to show how land uses are tied intimately with public infrastructure. And these types of projects are engaged over long time frames. A slow natural progression of the property from peak usefulness to decline can be led by aging owners, people who can view themselves in a steady state for another decade or more. The insight for the outside observer to understand where in the process a parcel finds itself. And then to implement policy in relation to the receptive impulses of that moment.

Out with the Mall

In with the residential new construction.

โ€œUtilizing existing infrastructure can bring homes to the market quickly, avoiding some of the delays associated with redevelopment or greenfield housing development,โ€ says Hannah Jones, senior economic research analyst at Realtor.com.ยฎ. “The shift from retail to residential is a logical solution in a country facing a persistent housing shortage.”

She added that malls in suburban states like New Jersey and Floridaโ€”both with well-established commercial corridors and housing pressuresโ€”are especially ripe for this type of redevelopment.

This from Realtor.com.

Avidor apartments abutting a public park in what was Ridgedale Mall parking

Pooch with passion

There was this sweet service dog at the airport the other day. A working dog, they call them, helping their owners overcome a sight impairment or a hearing decline. Emotional support animal designations are often used to help college kids bring their feline friends into the dorm. Itโ€™s the law that pets can skirt the law. If they meet the standard of a group objective, and an opening of access to those with disabilities meets a group desire level need. The puppy with whisky gold hair and large eyes isnโ€™t a private pet but a public support. The pouch is a new thing even if she looks like the same old thing. And hence in this new nature, is tallied up in a different manner.

MN Railroad Fact

Minnesota’s Land Giveaway

Railroads received 9.9 million acres of Minnesota land from the federal governmentโ€”more than the 7.3 million acres claimed by homesteaders between 1862-1880. The Homestead Act’s promise of land for ordinary settlers shifted when railroads got the biggest share. Now itโ€™s difficult for any major infrastructure project to command overarching commitments.

Road Talk

It’s no surprise that the homes abutting a freeway are a bit cheaper than similar homes with a buffer from the noise and hubbub. A recent paper, The Traffic Noise Externality: Costs, Incidence and Policy Implications was clever in using the construction of sound barrier walls to calculate the markets preference for a home protected by the wall versus one that was not.

The authors come up with a figure of 6.8%, which in itself is not as crucial as the acknowledgment that a public goods project, such as erecting a barrier wall, uniformly corrects the imposition of a busy road across a blanket geographic area. There is a market for public goods. A consistent, non-exclusionary response to a public goal reflected in the impassionate exchange of cash for homes.

The impact of the wall’s benefit, or the detriment of a noisy road, is reflected in the nearby neighborhood. There are other impacts resulting from the existence of the road and its location. It allows people to get to jobs. It might be an emergency route to a hospital where people object to the use of sirens. Buses might run off the road and so on. For that reason the net effect of the road is best taken as a package with the ability to divvy out and assess the pro’s and cons as refelcted in the surrounding land values.

To make a jump and try to use changes in house prices to make a meaningful observation of the traffic composition is a stretch. To extrapolate the value of home price change and reflect that back onto individual cars driving down that road, as the authors of The Traffic Noise Externality simply don’t follow me. It seems it would be a categorization problem.

the land let him down

Imagine you write a whole textbook only to find out you were on the wrong track. Five hundred pages establishing rigorous scientific method for geographyโ€”two years of intellectual labor demonstrating that spatial patterns could be analyzed with the same logical precision as physics. And then you look up from your equations and see Baltimore burning, students protesting, urban poverty that your elegant models somehow failed to predict or explain.

David Harvey himself had acknowledged in the book’s preface that he “wrote this book mainly to educate myself,” seeking to understand why his quantitative work kept producing “unpublishable papers.” 1 THE RIGHT TO THE CITY David Harvey He thought the problem was methodological sloppiness. He thought tighter logic and better statistics would solve it.

But standing in the ruins of American cities in the late 1960s, Harvey confronted a different possibility: perhaps the methods weren’t wrong exactly, but they were asking the wrong questions. You can’t model urban crisis without modeling capital. You can’t explain spatial patterns without explaining property. You can’t understand cities without understanding who owns the land and how they acquired it.

The textbook wasn’t falseโ€”it was beside the point. All that careful work distinguishing inductive from deductive inference, all those chapters on probability theory and classification systems, and somehow he’d managed to write 500 pages about space while avoiding the one thing that actually organizes space: value.

By 1973, Harvey had become a Marxist. The shift wasn’t a rejection of rigorโ€”it was a recognition that methodological precision without political economy is like having perfect instruments for measuring shadows while ignoring what casts them.

“Explanation in Geography” remains a landmark. But it’s a landmark of a particular kind: a monument to what you can accomplish while carefully, meticulously, rigorously avoiding the most important question.

Does the land still have something to say?