Inciting Violence?

MINNEAPOLIS (AP) — Some Minneapolis City Council members are preparing a new plan that seeks to replace the city’s police department in the wake of George Floyd’s death.

Phillipe Cunningham, Steve Fletcher and Jeremy Schroeder are working on a proposal to create a new public safety department that removes the police department as a standalone department from the city charter.

The three are still working on their plan and expect to release it by the end of January, the Star Tribune reported. It would require voter approval.

Cunningham told the newspaper that the proposal might place oversight of the new department on par with many other city departments, giving the council legislative authority while the mayor would retain executive authority.

Minneapolis council to try again with plan to replace police (apnews.com)

MN comes in at #2 to raise a family

According to research by Wallet Hub, here are the top five states in order:

RankStateScore ‘Family Fun’ ‘Health & Safety’‘Education & Child Care’ ‘Affordability’ 
1Massachusetts60.889103621
2Minnesota60.571458115
3North Dakota60.103372141
4New York59.802216547
5Vermont59.164015274

Raising a healthy, stable family sometimes requires moving to a new state. And the reasons for moving are often similar: career transitions, better schools, financial challenges or a general desire to change settings. Wants and needs don’t always align in a particular state, though. For instance, a state might offer a low income-tax rate but have a subpar education system. However, families do not need to make these kinds of tradeoffs. They can avoid such problems by knowing which states offer the best combination of qualities that matter most to parents and their kids.

The column on the far right is title ‘Social Economics.’ The full report is here.

Probability title deed

In South Africa a start-up called Bitprop is helping with affordable housing by building and securing tenants for backyard rental units (in return for a percentage of the income stream from the rentals for a set number of years).

Our duties include locating investors, drawing up professional building plans, sourcing reliable local builders, and enforcing good environmental practices. Furthermore, we work with the homeowner to develop landlord, financial and entrepreneurial skills. 

How micro property development could transform townships in a big way | OUR FUTURE CITIES

It is estimated that 30 million people in South Africa do not have formal property titles to their homes. So a significant outcome of the process is securing a recordable claim to the property for the owner.

Bitprop works to “Enable micro property development at a macro scale”. We want to prove that previously ‘invisible’ property assets, which are not recognised by normative legal or financial institutions, can be developed into valuable investment opportunities. We do this by taking each homeowner that we work with through the process of securing their title deed.

How micro property development could transform townships in a big way | OUR FUTURE CITIES

The focus is on generating income from the renters. But property ownership does more for homeowners including incentivizing repairs and improvements. Perhaps, more importantly, the titling process enables people to buy and sell their property more freely should their circumstances warrant a change. If Bitprop is as successful as they wish to be, they will create a valuable public good.

Our dream is that we do this so well—because we have the commercial incentives to do it well because if we do, the risk in our property investment goes down—that we, on a voluntary, private basis, start mapping land, step by step, and then we get the council to acknowledge this as a low-cost, digital- and- technology-based title deed.

20 Minutes With: Carl Sammeli, C0-Founder of Bitprop | Barron’s

This is a story to follow.

Cool gadgets for the home

There were a handful of gadgets clients talked about this year that are worth mentioning. (note: I don’t mean to endorse any one model–there are several choices in all cases.)

Garage Door Sensors: Ever leave on a road trip and worry that you left your garage door gapping ajar? Now your smart garage door opener will notify you, and allow you to close it en route.

Control, secure and monitor your garage door from anywhere and receive real-time notifications when your garage door is opening or closing.

You can also have it on a timer to always close by a certain hour of the evening. Super handy especially if you can’t see your garage door from a window view in your home.

Security Cameras: Little nubby camera heads have been around for a number of years but either the price point has dropped or folks are more comfortable with the technology, as they’ve become much more prevalent. They sit inconspicuously on the fireplace mantle with the thick candles or amongst the books on the wall of bookcases. Many have both audio and video capabilities.

Thermostats: Most homeowners don’t replace their thermostat until their furnace dies, which on average is every 15-17 years, so you might not know of the progress made in their construction. Wi-fi enabled thermostats allow you to track your homes temperature from afar, warming it back up as you arrive at the airport, for instance, after a long trip to the beach. One agent told me that when her in-laws visit they always crank up the heat. With her new thermostat, she just hops on her phone and resets the temp (so much for being nice to the baby sitters!). The monthly reports of energy tracking and usage are also very popular.

Lighting: You no longer have to stumble around in that back storage room or wish you had undermount lights in your kitchen. There are many LED lighting options which are bright and convenient to install. No more florescent glass tubes, no more undermount lights heating up your cabinets. One variety comes on a rope with an adhesive backing for easy installation. Ceiling mount LED’s are flat as there is no additional casing. You can light up your place or tone it down.

Keeping your garage door closed and lights on is the best way to promote safety in your neighborhood. Maintaining low temperatures in your home when you are away will save energy. Each of these gadgets are small steps towards better use of natural resources, and a more safe and secure home.

Money & Safety

On Friday the Minneapolis City council voted 7-6 to fund hiring outside police from the Hennepin County Sheriff’s department to assist with the crippling crime increases within the city. This pecuniary decision to support the MPD is the first since the defund announcement in June. The discussion between the council members and Chief Medaria Arradondo was tense. You can find a recording of the full meeting here.

Fortunately, reporter Mark Vancleave with the Star Tribune, reduce the two hour meeting down to a 9min video clip of highlights:

The council members come at the discussion for approving the funds from a variety of viewpoints. The strongest defund voices place all the work of street safety at the policeman’s door. Money is raised through taxes, salaries are paid to cops, crime statistics measures their performance. The deterioration in safety is all on the police so there is no economic reason to purchase more of a failing service.

The mid-road view is best expressed by Lisa Goodman. She provides several examples of her constituents being assaulted and carjacked and being afraid to leave their homes. She mentions some of the extenuating circumstances following George Floyd’s death including the riots and the retirement of a large segment of the force. In her view, they are purchasing more police power for better response times and general police work.

The wholistic view of policing is voiced by Andrea Jenkins (8min). She maintains that the community must engage with the police force. That the community is also involved in the work to maintain order and safe streets. She is probably the only one who could have voiced this view when put at odds with the defunders.

This view isn’t new. Back in the 1960’s Jane Jacob’s spoke to eyes on the street. Although it is accepted informally that community participation makes a difference, there is no accounting for this type of work. National night out, block watch groups and such are one of those ‘oh isn’t that neighborly’ things that people do. Not a hard cash-in-your-hand transaction.

If public safety was accounted for not only by city budgets to pay officers, precincts, detectives and administrators, as well as by public participation, prevalence of criminal elements, then we would have a universal accounting of the forces that contribute to safety. We would not only want to considered the time people put into surveillance but also the losses people incur when they go back on their group and turn in a criminal.

Instead, some council members are accused of being disingenuous for trying to deny this very real system. They deny it in order to advance another objective which lays beyond their power. But whilst they hijack one economic process in order to engender a social outcome elsewhere, Minneapolitans are getting shot.

Fire Station 2

Our fire station, Fire Station 2, is getting a brand new building next year. The thirty-five year old building is being razed, so new beefed-up accommodations can better respond to calls and better house the firefighters. There’s been a shift change, from shorter 3-6 hour ones to overnighters which necessitates a dormitory.

Firefighting is an entirely voluntary service in some cities. We have a paid-on-call system where active time (training, call response, equipment maintenance…) is paid at an hourly rate. We’re not talking a lot of money, the present range is from $12-15/hour–about half of the per capita income.

So what’s that called, that missing $12/hour? What accounts for the difference in what the firefighter could earn and their paid-on-call wage? Here’s how Ron Roy, the division chief for Douglas County Fire District #2 in East Wenatchee, Washington, put it:

So why do we do what we do? It is about our communities and the hometowns in which we have elected to live and raise our families. We should care about all of those around us and recognize their needs. When they are having health issues, mow their lawn, shovel their snow, or take out their trash. We are the lifeblood that makes it a community. We all need to step up and provide some of our time and talents to help make our community a better place. Sometime, somewhere, you or a loved one will need the services provided by community members.

What he is describing is a just-in-time system of providing services to neighbors who unexpectedly find themselves in need. There is no chit system, there is no direct tit-for-tat. It’s an all-on-your-honor type of deal. This is work in the public sphere.

But back to the missing $12/hr. It doesn’t just vanish. It is a measure of the city’s capacity to respond, in this case, to extinguishing fires, and in doing so saving lives and property. City capacity measures the on-call storehouse of the residents’ ability to step up and provide some of their time and talent in order to advance a public objective.

Buildings that walk and roll

In Shanghai a five story primary school building walked to its new location some 200 meters away.

Back in 1985 the Fairmount Hotel was moved in San Antonio. The clip is 17:47 minutes in length but contains lots of details including a two week halt to dig up artifacts from the Battle of the Alamo, maps, bridge crossing, groups involved ( and great 80’s theme music!). Take a look at the renovated Fairmont Hotel.

I remember when the Schubert Theater was relocated, lifted and rolled, in downtown Minneapolis in 1999. It took twelve days to move the 5.8 million pound structure, originally built in 1910. But it took a decade more and upwards of 38 million dollars (not all public), to transform it into the Cowles Center for Dance and the Performing Arts. How a city comes to terms with spending that kind of money involves achieving multiple objectives. The Star Tribune explains:

Meanwhile, restoration of the Shubert will create 150-plus construction and permanent jobs, bring tens of thousands of dance patrons downtown, complete the performing-arts vision for the successful Hennepin theater district and alleviate a loitering and crime problem that has moved from busy Block E to the lonely stretch of the avenue on which sit the Shubert and the Hennepin Center for the Performing Arts. At least that’s the official pitch. The cops and the new urbanists say having people on the street trumps crime. The arts crowds frequent local bistros and they don’t make trouble.

In 1995 Minneapolis was nicknamed Murderapolis after the New York Times wrote a story pointing out that the city had a higher murder rate per capita than New York. This particular spot in downtown struggled with crime. The jobs were also successfully filled by minority tradespeople.

CEO Louis King of Summit Academy OIC on the North Side, which trains dozens of young minority folks for good-paying jobs in the construction trades, is near agreement with McGough Construction and the city. Up to one-third of the workers on the Shubert project will be women, minority apprentices and skilled minority craftsmen. The jobs will pay $18.50 to $40 an hour for months. That’s a good thing.

Wouldn’t it be interesting to see some sort data estimate and geographic tie-in to how the public investment performed? What proportion of the presence of a renovated and vibrant building on that section of the block helped with crime reduction? Did the minorities and women who worked the jobs progress in their profession? Is there an index to say x- proportion of the investment was preservation, and x-amount inflated into other community value?

Put me in title

In the is-it-private-or-is-it-public game, I agree that a home is a private good. The event which makes you a home owner is a closing, which in Minnesota, is usually held at a title company. On the chosen day the buyers and sellers sit down (pre-Covid) and the buyers sign up for a mortgage to finance the purchase while the sellers sign over a warranty deed. Done deal. No take-backs. The fees include a little state tax and filing fees so the documents are filed publicly in the county recorders office.

The process almost seems trivial but it so powerful. This singing over of a title and its public recording in a government office is the most significant feature of private wealth in the US system.

Interestingly, there are a whole assortment of local norms and customs revolving around closings across the United States. Most states either close at the table or over an escrow period. In Wyoming, however, real estate agents conduct the closings. Also specified and unique to almost every state is a foreclosure process. Most weigh heavily on consumer protection. And here is an interesting table breaking down all the nit picky processes and fees.

Owning a home is a staple of the American dream. Owning a home ties you to a community where you participate in measure of all public venues: public safety, pubic schools, public transportation, parks trails and the environment, governance and civic pride.

How are things going in Minneapolis?

Personal safety is a deal breaker for most residents. If they do not feel safe in their own home do to gun violence, car jackings and even break-ins, they will move.

It’s all in the comments. Here are just a few from this post.

What is Public- National Defense edition

National defense is the most common example cited as an economic public good. It is certainly the oldest public good, harking back to the times of kings and round tables, and even before. Allegiances were made, city walls built. But let’s see if it always meets the economists’ definition of providing a service that is non-excludable and non-rivalrous.

The name alone gives away that it is already a different something than, say, sunlight. Right off the bat the precursor ‘national’ tags the defense to a nation. So it is a service to one nation, excluding all outsiders. In this case being non-excludable really means the service cannot exclude citizens of the nation in question.

However, there also seems to be all sorts of exceptions to this rule. Take the Japanese Americans that were locked up during WWI. Around sixty-two percent of the internees were US citizens and yet a global conflict thrust them at odds with their nation. Recently Mike Pence criticised the President Obama Administration for not rescuing ISIS hostage Kayla Mueller. The claim being that this US citizen did not receive the protections of national defense that she and her family deserved.

Like any definition it only takes one counter example to throw the statement into question. Let’s consider whether the good is non-rivalrous: that the use of it by one consumer does not diminish the use of it by another. This seems right. Everyone in Philadelphia received the same protections against terrorism when Navy Seals took out Osama Bin Laden, as folks in Albuquerque. This mastermind of evil would do harm to any American which means his demise makes all Americans safer.

Yet, our history is riddle with military involvement in countries in efforts to preserve business interests abroad. In the early part of the twentieth century the US defense forces were repeatedly used in Nicaragua to protect business interests. Declarations against such activities include objecting to the use of a national resource to benefit a sub-group, the business community. (excludable) And since the military is run on a budget, the occupation of Nicaragua from 1912-1933 undoubtedly took away from expenditures on other national defense initiatives. The end goal of defending all citizens is rivalrous as there is always a menu of possible national pursuits that could drain the national purse.

It seems to me that there are no such things as goods that are solely for the public benefit. There are only goods, or rather goods and services. And those goods and services can be used by individuals or groups, for private or public objectives. Some goods, by nature, are more prone to be shared within groups. Some are more productively produced while strongly preserving private property rights. Groups with shared interests decide how to employ goods and services, where the groups can be as large as the human race all the way down to a couple.