Also available at mises.ca
The end of World War 2 marks a good beginning point for this history.
North American society went through some big changes and the cities
reflect that. In Canada, The Canadian Mortgage and Housing Corporation
was created and with it came the regulatory framework that vastly
increased the government’s presence in housing. Government intervention –
however – always has its unintended consequences. Post WW2, the
Canadian government expanded its highway system, got involved in the
mortgage business, and allowed provincial and municipal governments to
plan and amalgamate city communities. But central
plans have a tendency to hollow out downtown cores that serve the
interests of the market. The “Suburban City” is the result of government
control over zoning laws and highway construction. These types of
communities are sometimes very different from ones created by market
means.
While high urban density can be viewed as good or bad, in terms of
city functionality, density is a prerequisite for prosperity. City
downtowns are market centres. Resources from the periphery are brought
to market centres for trade, and within these centres live the people
who deal with this market everyday. It has always been the rural farmers
and trappers who were the ones on the edge of poverty – surviving the
bare elements of nature to reap the rewards later in the city. The city
was the centrepiece in the division of labour; a place to go to make a
name of ones self. “Simple country living” that suburbia is supposed to
reflect was always a Utopian dream. That somehow one could live out in
the boonies yet receive the luxuries of a city.
This Utopian dream became a reality with the advent of the car. And
with government roads, the possibility of suburbia became technically
possible. But just because something is technically possible, doesn’t
mean that it should necessarily be done. Market signals are the best
means of discovering this information. Individual prices revealed
through exchange embody information entrepreneurs use to discover
consumer demand and determine scarcity. A major factor in Post WW2
Canada was exempt from this process. Roads, and the whole highway
system, were already monopolized by the centralized state. The sudden
profitability found in developing rural lands for residential purposes
was aided by the non-market actions of building government roads.
“Drive till you qualify” was a widely used phrase that meant the
farther one went from the metropolitan centre, the cheaper land became,
thus decreasing the income requirements for a mortgage. With cars being
more prominent in society, the location of work became less important.
Yet with no market forces in the production of roads and highways, the
structure of cities changed drastically. Downtown cores eventually gave
way to suburbia, but many older suburban areas have been absorbed by the
congestion of the city.
These city-suburbs are a new type of urbanization unique to modern
times. Residential neighbourhoods are clearly separated from commercial
activities. All designs are geared around roads. Businesses usually
reside in a large parking lot, physically connected with other
businesses. Commercial and residential land are developed around the
road. The highway has become the centrepiece with monotonous buildings
acting as the peripheral. Urban sprawl is eerily similar to Karl Marx’s
prediction of communities in a Communist State. As Marx writes in the German Ideology,
“The abolition of the antagonism between town and country is one of the
first conditions of communal life.” Indeed, the logical conclusion of
Suburban Cities is, “a more equable distribution of population over the
country.”
But communism doesn’t work. Despite places like Hamilton or Regina,
where this “hollowing out” effect can be seen, city downtowns still
thrive because of market means. Cities are still the manifestations of
individual spontaneity and despite best attempts, the government cannot
entirely erode this process. To do so would spell disaster for
government revenue. The market must still be allowed to work if taxation
is to have any meaning or purpose.
But markets in the Suburban City are, in a way, non-existent. For
many, the suburban home is an island of private life surrounded by other
private islands. Everyone commutes somewhere. The suburban
neighbourhood offers nothing more than residential homes, ensuring that
streets remain empty and void of commercial activities. Children may
play in the streets, but there is no natural adult supervision. Contrast
this to a city neighbourhood, where the streets are the best places for
children. With a mixture of commercial activity, residential homes,
apartments and other city neighbourhoods immediately adjacent to either
side – the presence of people is always guaranteed. There is a natural
“eyes on the street,” where people ensure law and order through their
everyday actions.
The government builds roads not streets. The streets are where social
interaction normally occurs: among the commercial owners and the
residential population. Suburbia segregates market diversity through a
series of zoning laws, including running a business out of ones home.
There are no “eyes on the street;” police force law and order. A city
street with nobody on it is not a safe place.
Jane Jacobs, in her brilliant work, The Death & Life of Great American Cities, assumes
that the reason urban density dispersed into suburbia is because a)
most people don’t like density and b) most people are unfamiliar with
what makes cities and neighbourhoods prosperous. This is true, in a way,
but it neglects the government’s role in highway creation and the
effects this have on rural lands. While a suburban city could surely
arise on a free market, the development of these cities as they exist
now wouldn’t have been possible without government intervention. Seeing
that life in suburbia is supposed to reflect town living, it’s possible
that a free market wouldn’t produce large urban sprawls but instead
dense packets of towns regional to a larger city.
Canadians are building new houses, following the suburban format and
doing so on a credit binge fuelled by low interest rates. If city
density is seen as an impoverishing aspect of one’s life, one is more
likely to take refuge in suburbia. When there is no price for money,
everybody can do this without any regard to future social conditions.
But eventually the boom will end and scarcity will reveal itself. With
it, the suburbs will have to adapt or face abandonment.
No comments:
Post a Comment