Messing with Time- Disney

Disney has added a warning at the beginning of its classic films (Lady and the Tramp, The Aristocats, Dumbo to mention a few) to pre-empt them from being torn down, ripped up or cancelled in some fashion. The disclosure is basically a reminder that society changes over time.

While these cartoons do not represent today’s society, they are being presented as they were originally created, because to do otherwise would be the same as claiming these prejudices never existed.

Does Disney have the cultural capital to quell the mob? To take away the quills from the Robespierres before they write another dozen orders of destruction?

As groups decide how to proceed with the statues that were gingerly removed after 90 odd years of barely any note, I hope they look to Disney for more than just entertainment. Because remembering the past is vital to understanding the work that needs to be done to step up the stakes for tomorrow.

I’m not sure if Disney’s common sense approach will work. To point out that one might not agree with the actions of decades gone by seems too simple. To remind people that, should they feel embarrassed, disappointed, or enraged with the habits of their forefathers, they can use those sentiments to forge a better future; that the future is in their hands, not the dead guy on the pedestal.

Time will tell.

A public of Two

When I was young 50th wedding anniversaries were common. The local golf course was the venue for gatherings and cake, and for testimonials from friends and relatives. Stories about the young couple’s meeting and courtship, and then marriage and the crazy baby years, were spun out over the white table clothed tables. Maybe there were even stories of difficult times and persistence. In today’s world an announcement about an anniversary surpassing the 30 year mark is commented upon, oddly with: WOW! Congratulations!!

This most basic public of two, (as the property they share is available to them both and actions of one effect the health, wealth and well-being of the other) continues to be threatened by a considerable risk of dissolution. “About 90% of people in Western cultures marry by age 50. In the United States, about 50% of married couples divorce, the sixth-highest divorce rate in the world. Subsequent marriages have an even higher divorce rate: 60% of second marriages end in divorce and 73% of all third marriages end in divorce.”

You would think the benefits of a longer life would be an incentive for all those folks to stick together. The CDC reports: “Previous studies have found that married persons have lower mortality rates than unmarried persons, attributable to either selectivity in entering marriage (i.e., healthier people are more likely to marry) or health-protective effects of marriage, or a combination of the two (1,2). ” Even in the COVID numbers we find “strong and stable families seem to be more resistant to the pandemic.”

Things only get worse as people age and live alone which leads to a crisis of loneliness. In Minnesota the total number of housing units is 2,477,753. With the total population at 5,639,632 the average number per household ends up at 2.49. So everytime you can think of a household made up of more than two people, there is someone living alone. The estimates I saw came in at 20-23% of the population. That’s a lot of singles.

So what gives when the advantages of coupling are out there for all to see. I’m starting a list:

  • With both parties in the work force, the short term transactional nature of business sub-plants the long term ambitions of a social contract.
  • Fear of being duped -don’t take it.
  • The transactional measure of giving ‘enough’ should be replaced by the social measure of giving their best effort.
  • Lack of celebrations that recognize couples in front of an audience.
  • No standards for friends and family to support or constructively comment.
  • Avoid failing at marriage by not getting married.

The data proves that marriage is good for us. So why folks don’t invest a little more work at staying together is odd to me.

Messing with Time

Such a long list of public statues have been pulled down, defaced, and parkways and buildings have been renamed, that the whole culturally sensitive activity has become banal. Standing in line to do their part are student activists at the University of Kentucky who have been demanding the removal of a mural from the 1930’s, one depicting the settling of the Commonwealth of Kentucky. But not everyone is sympathetic. Long time climate activist, writer and poet, Wendell Berry, is suing.

Now, Wendell Berry — the writer, farmer and longtime Kentuckian — is suing the university over its decision to remove the mural, arguing that because it was created through a government program, it is owned by the people of Kentucky and cannot be removed by the university. (Mr. Berry knew the artist of the mural through his wife, who is a niece of Ms. O’Hanlon. Mr. Berry’s wife, Tanya Berry, is also a plaintiff in the lawsuit.)

Perhaps it is time that the courts weigh in on the issue. The period where the passion of the moment, the outrage, perhaps has expired. Voicing a need for change is acceptable, it is desirable. The public square, whether physical or over electronic media, is part of the system. Yet at some point the voicing process is over. At some point destruction to emphasize the severity of the issue becomes destruction to feel powerful. At some point attention to the issue at hand starts to itself erode other worthy causes.

The Minnesota Court of Appeals recently issued an opinion regarding the appropriateness of alining time with the crime. Even if the law changes at a later date, it ruled that the perpetrator cannot be exonerated if the deed was unlawful at time of conviction.

A defendant is not exonerated within the meaning of Minn. Stat. § 590.11, subd.
1(c)(2) (Supp. 2019), when his conviction has been vacated based on a later clarification
of the law, when the conduct violated the law under existing precedent at the time the
offense was committed.

Shouldn’t it follow that the reverse should also not be allowed? That today’s cancel culture cannot convict based on revisions to laws dictating new standards which make historical actions unlawful? Those artists (in this case a woman-which in and of itself should be revered) and their subjects and the commissions which hired the work be done were operating within the guidelines of their time. Not some future reality yet to be conceived.

If anything these artifacts should be kept around because they are there to tell our story. Sir Bertrand Russell wrote an essay offering some ideas on what history should do for the general reader. Here is a section that points out that a history is needed precisely to address the ever changing nature of ‘human affairs.’ It appears in Portraits from Memory and Other Essays.

Our human story is ever evolving. We operate on a time continuum. Thus it seems, that if for no other reason than to avoid making complete fools out of ourselves, we must evaluate events under the conditions in which they occurred.

Is it Public or Is it Private?

Marginal Revolution University is an incredible source of economic knowledge. In addition to the course work there are videos and games. Here’s one designed to help distinguish between public goods, private good, common goods and club goods. At the end of the game there is a cheat sheet of how to classify these goods and services.

Pure Private Goods/Services (excludable, rival)
● Haircut
● Pizza
● Website design
● Table service at a restaurant
● Snuggie
● House


Club Goods/Services (excludable, non­rival)
● Netflix
● Amusement park
● Uncongested toll roads (highway)
● The movies
● YMCA membership


Common Goods (non­excludable, rival)
● Busy city street
● Hospital E.R.
● Tuna in the ocean
● The meadow where your sheep graze
● Wildlife
● Forests


Pure Public Goods/Services (non­excludable, non­rival)
● Wikipedia
● National defense
● Uncongested city street
● City fireworks
● Air to breathe
● Google
● Asteroid defense

To understand the economic arrangement I talk about in this blog, these categories have to be rearranged. I ask people to consider that there are two natures to every product: public and private. The nature is dependent upon who, or which group, has access to the goods.

Let me give you an example. A haircut seems like a pretty straightforward private good. The exchange is between two individuals where the customer clearly owns the hair. But what if the haircut was given to disadvantaged kids in an elementary school by a barber who was providing the service as a gesture of community involvement?

The purpose of the activity is to enhance a child’s self esteem and in doing so increase their productivity at school. The barbers work for free so no money is exchanged to make this a private transaction. There are no production reports, nor does this get measured as a part of GDP. This service is done as a public service not a private transaction. Mind you not just anyone can get the free haircut. Only the kids at the elementary school in question. Everyone else must pay. So the public nature has to be attached to that grouping: it is a public good for the elementary school kids.

This is the reason a haircut cannot be classified exclusively as a private service. In due time, I will sort through this whole list of goods and services to convert you to the new classifications of public and private! In due time.

Who is NOAH anyway?

It was three to four years ago when the acronym NOAH (naturally occurring affordable housing) started appearing in presentations and in print. The sale of a 698-unit apartment complex in Richfield, a modest first tier suburb adjacent to South Minneapolis, and the subsequent fallout from tenants having to relocate in light of the new owners’ ambitions to rehab the ailing structure, brought this situation into focus. The term emerged from the realization that there can be a time when both landlords and tenants benefit by rents low.

Analysts talk about housing like it is a static product. How many units are for rent, with how many bedrooms, and how many square feet. People talk about housing as if the most interesting thing about it is its physical parameters. But properties change over time. What is brand-new, mechanically up-to-date today, becomes tired and dated in the course of a dozen years. People change over time too. A single adult transitions into married life and a family changing their housing needs.

Housing structures have a cycle. New means no repairs but new also means (relative to comparable used properties) the most expensive. As properties age they can become dated and repairs can start to be overlooked. Usually used properties are supporting some mix of these two: the roof is new but the furnace midcycle; the counters are granite but the appliances from a decade gone-by.

Wear and tear and maintenance can also vary depending on the tenants. A drive around any large University campus will show off some student housing that is a little worse for wear. And some landlords are better than others at keeping up on property demands. It can be that the owners are at a later stage of their investment and are happy enough to keep doing repairs instead of replacements, and ignoring the dated carpet runners in the hallways. As long as their renters are happy with stable rent, all parties allow the property to age.

Keep in mind the economics of the lower rent. The owner, by letting improvements slide and just getting by on minimal repairs, has in effect allowed the building to decrease in value. The lower rent is a transfer of building value to the renters. The decreased building value in the open market attracts an investor who is then motivated to do the renovations. And with this the new investor attracts renters who can pay for them.

This most probably describes the evolution of the large apartment complex in Richfield. Other expenses can also impact an owner’s decision to sell.

Dickens sees NOAH threatened across the region, and said landlords get no choice when property values — and thus taxes — rise. Maintenance costs and upkeep also climb, with costs typically passed to tenants.

Is it not beneficial to the community or the renters for a building to deteriorate to the point of condemnation. So the process of an investor rehabbing an aging building in and of itself is a good thing. The reality is that structures depreciate over time, and repairs can only be ignored for so long. NOAH wasn’t a discovery of something new, it just revealed a situation in the open market where both the provider of the housing and the residents found an agreeable equilibrium. For a time.

The biggest takeaway from the acronym is that there is no secret money tree that will appear and save the most vulnerable from their housing burden. NOAH occurs as a situation where an investor tolerates some devaluing of property which is then reflected in lower rent to tenants. But it cannot be sustained without the building becoming a teardown. In the end, when people can’t afford their housing expense, some other group will have to cover the difference.

The Trick with Triplexes

A little over a year ago Minneapolis was getting a lot of attention for ending single family zoning which secured one family home for one lot in 70 percent of the city. Politco ran a headline with dramatic vivid language of strangleholds, and further reported on how activists were taking victory laps following the City Council’s 12-1 vote to reverse single family zoning across the city. The Atlantic ran an article. And the New York Times gave Minneapolis‘s story first consideration in their article.

Yet in this first part of 2020 their have only been, drum roll please, 3 permit requests to take advantage of this up-zoning. The reason being, according to the Government Affairs Director with the Minneapolis Realtor Association, Eric Meyers, “even though new zoning laws permit triplexes, the underlying code was still written with single-family homes in mind. Height restrictions are the same, as are setback requirements.” A seemingly simple request to increase the height of a garage peak by one foot drew an extensive and heated debate. 

Since demand for housing continues to be strong in Minneapolis –the median sale price has risen 5.5% over the last twelve months– and hence the need for more housing units is unwavering, one would think that the spirit of releasing the stranglehold of the single family home would make the process more forgiving.

Emily Hamilton at Bloomberg explains it best: Want More Housing? Ending Single-Family Zoning Won’t Do It. Regulations that have been built over years won’t be undone with that quickly. Think of this at step one. Now investors are reconvening to put together documentation on the obstacles that stand in the way of the envisioned housing option. They will spend time and resources to go back through the city process and seek approval for building conversions and new builds.

Some investors will call it quits and sit out this process as they fear it is too expensive. But it is in this back and forth between the private and the public that incremental changes are made in order to achieve the goal of more housing units. And in doing so lower the cost of homes.

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Here’s the deal 101

Our local NBC news outlet recently ran a story about an elderly couple receiving help from neighbors after being criticized for not keeping up the exterior paint on their home. It totaled $67,000 worth of help. There is no name given to this transfer of money. When a private party helps themselves to $67,000 from their employer it is called embezzlement. When a politician helps themselves to $67,000 from their campaign fund it is called corruption.

The old school explanation for this activity is to denote it as a form of charity. But is it really a gift? Neighborliness is a term that shows up on surveys. But what does that mean? I see this exchange between the neighbors of Gloucester is the most basic transaction in a economy of groups. Let’s pull it apart.

It all started with an anonymous note left for the couple which read, “Please Paint Me! 😦 Eye sore – Your Neighbors. Thanks.” Although clearly written by one individual, the message is presented as a community concern. Signed, your neighbors. You’ve probably heard this type of chatter before. A house on a main road is dilapidated, or decorated with eccentric siding. Comments like, ‘I really wish someone would do something about that place.’ Or, ‘Some people are bringing down the neighborhood!’ So although one neighbor wrote the note, thoughts of this nature were undoubtedly mulled over by many a passerby.

A personal residence is deemed the bastion of private property, and property rights are a keystone feature of our economic system. But the note indicates that there is a hazy area not reflected in the legal deed, filed in the county records, which spells out the owners names. The area residents feel they have a right to demand that the exterior meet their expectations. This is not a novel idea. In fact cities even have ordinances which address the exteriors of properties regarding thresholds for debris removal and grass mowing.

The couples’ daughter took to social media to voice her response to the note. She points out that her parents had lived in community for the past 50 years. And that during this long history they had maintained their home, and hence contributed many years of service towards an acceptable streetscape. “My family for many years took care and maintained this house as best they could…” 

The reason for the disrepair could happen to anyone, it was an act of nature. The article reports that “Marilyn, 72, developed multiple sclerosis about 30 years ago and is mostly confined to her bed, and Jimmy, 71, recently recovered from a quadruple bypass…” Health concerns take time and resources away from the couples ability to comply with the norms of the neighborhood.

Once the word got out about the need, once demand for goods and services was established, a voluntary response from the community resulted in a $67,000 balance in a GoFundMe account. Currency is very liquid, yet these funds are not fungible. As the report confirms the money is “to be used for new siding on their home, new windows, roof and stairs.”

There is no reporting of free riding or extortion, even though funds are seemingly extracted from a greater group to a private party. Nor is this activity portrayed in a religious or moral sense. The voluntary transfer of resources to improve the exterior of the home is held together by a communal objective, one that the recipients contributed to over. This transparent and voluntary activity is the most basic transaction in economy of groups.

“People look out for each other in Gloucester,” he said. “If somebody needs some help, we just get together and do it. It’s all just very heartwarming.” What I hear him saying is that Gloucester is a town with a free an open economy. And yes, that is heartwarming.