One Year After: Freddie Gray and “Structural Statism” 

 

¡STUPIDCRACIA!

¿Extravant Statism? or ¿Effective Reform?

Compartir > > > >   http://wp.me/p2jyCr-IY

When Freddie Gray was born in 1989, Baltimore hosted 787,000 residents and 445,000 jobs. By the time his fatal injuries in police custody provoked riots last April, the city’s population had fallen by one fifth, to 623,000, and its job base had shrunk by one quarter, to 334,000.Screen Shot 2016-04-26 at 8.25.23 AM

Little wonder that throughout his life, Mr. Gray had never been legally employed. Nevertheless, friends and family considered him “a good provider,” according to The Baltimore Sun.

This was because he worked in the drug trade, which filled his city’s economic vacuum. An average day on the corner can yield take-home pay ten times that available in the low-skill warehousing or service jobs sometimes available to high-school dropouts like Gray.

Post-“unrest” Baltimore seems less interested in effective reform than in more extravagant statism: new programs, projects and pork.

The catch, of course, is that such rewards carry two great risks. The lesser of these is regular involvement with the justice system. Gray was arrested 18 times and served three years behind bars in his tragically brief life.

Far more dangerous is how competition works in illegal markets. When selling contraband, one does not pursue market share by advertising high quality or low prices. Sales are increased by acquiring territory from rivals, often violently.

For Baltimore’s drug cartels, the post-riot disequilibrium provided an opportunity for market expansion. Inevitably, each strategic assassination produced reprisals and collateral damage.

As a result, 2015 saw the highest homicide rate in Baltimore’s history, at 55 per 100,000 residents — over 13 times New York’s rate. This horrific suffering was concentrated in the African-American community: 93% of victims were black, of which 95% were male and 65% aged 18 to 34.

In Freddie Gray’s demographic, then, the homicide rate was 450 per 100,000 — higher than the peak U.S. combat death rates recorded in the wars in Iraq and Afghanistan.

The prevailing narrative is that all this is a by-product of structural racism and exemplifies a society “built on plunder” (according to the celebrated black radical Ta-Nehisi Coates). This is a myth.

It is not that racism doesn’t exist but rather that it is relatively constant. When explaining variations in economic and social outcomes, constants have little power.

It’s the application of destructive public policies that explain why neighborhoods like Gray’s Sandtown-Winchester are deprived. If one had to put a label on this MALIGNAN FORCE, it might be:  STRUCTURAL STATISM (done by Stupidcracy): an addiction to market-unfriendly governmental approaches to every problem. (That Malignant Force Was the same STUPIDCRACY that Dumped DETROIT?

Populism, Corporativism, Lawlessness, Corruption, Infaumous Traitors, Anomia, Esquizofrenia-Anarquia, ¿ para que mas  nombres o idiomas? siempre es lo mismo: ¡STUPIDCRASIA!

BI-PARTISAN STUPIDCRACIA The federal government encourages this addiction. Its partial subsidies for a vast array of entitlements and so-called urban renewal programs induce dependency and leverage the expansion of bureaucracies in Baltimore and elsewhere.

The damaging effects of the statist compulsion are best seen in housing policy. Shortly after the 1937 passage of the Wagner-Steagall Act — premised on the notion that government landlords would serve poor and working-class tenants better than private ones — Baltimore established its Housing Authority. At the end of WWII, the city had built ten projects. By 1980, it would have 30 more.

The resulting intracity diaspora destroyed vast amounts of social capital. The neighborhoods that were leveled to access urban renewal subsidies may not have been pretty, but their residents had accumulated valuable but invisible capital — relationship networks, commercial contacts, and bonds of trust — that government planners simply ignored.

And if that weren’t bad enough, those placed in projects often found City Hall to be a slumlord. Baltimore recently paid $8 million to tenants alleging that Housing Authority workers demanded sex before making needed repairs. Federal audits have been consistently critical over the years, citing deteriorated public properties and administrative inefficiency that often resulted in high vacancy rates and unspent Section 8 voucher monies.

But most critically, this and other renewal programs opened a budgetary vein. Initially, federal housing loans covering 90% of construction costs were irresistible, but Uncle Sam later paid only one third of operating costs. Tenants and the city were supposed to cover the rest. But revenue shrank as subsidized, poor tenants crowded out working-class rent-payers, while costs soared.

In consequence, Baltimore raised its property tax 19 times between 1950 and 1975, and wrecked its economy. Each rate hike imposed capital losses on home and business owners. Predictably, they fled — not plunderers, but plundered. Repeated financial crises, job losses and social dysfunction followed.

Over time, city leaders understood that their tax policy was toxic to investors. Rather than pursue broad-based relief, however, they handed out special breaks to well-connected developers who focused their efforts on the waterfront, far from Mr. Gray’s neighborhood.

Now, at the anniversary of his death and as Baltimore’s primary election approaches, there is much talk that the city is about to chart a new course.

But course changes long have been advertised and seldom delivered. There is no meaningful political competition in cities like Baltimore, which has not elected a Republican mayor since 1963. Among the platoon of Democrats vying to fill the leadership vacuum, the platforms are as different as Tweedledum from Tweedledee — and predictably statist.

The city recently cadged hundreds of millions of dollars in aid from the state for new social-service programs and slum clearance projects. Officials have also pledged a $535 million tax subsidy to a billionaire for yet another waterfront development — its latest attempt to attract new capital without cutting taxes for the little guy. Most troubling, the City Council is advancing legislation to wrest budgetary power from the mayor, which will diminish Baltimore’s already-feeble fiscal discipline.

Post-“unrest” Baltimore seems less interested in effective reform than in more extravagant statism: new programs, projects and pork. We are doubling down on a failed strategy, hoping for different results.

Steve Hanke is a professor of applied economics at The Johns Hopkins University. Stephen J.K. Walters is the author of “Boom Towns: Restoring the Urban American Dream” and a professor of economics at Loyola University Maryland.
Advertisements

Published by:

PatAgonica

Soy el Dr. Gastón Alejandro Saint Martin (ARDMS. RVT. RPVI eligible, MD. CCPM). Medico patagónico; me gradué en la UNBA (Universidad Nacional de Buenos Aires, en 1961) Recién graduado y casado fui a hacer mi entrenamiento en la Universidad de Louisville, (UdeL) Kentucky, USA, la mas antigua Universidad Municipal de La Unión; pobre, pero de excelente nivel académico; con una pequeña escuela de medicina. Louisville está en la margen izquierda del rio Ohio (afluente del Mississippi) Elegí a UdeL por estar entre los rio Ohio y Tennessee, que era la zona mas subdesarrollada de La Unión, (cuna de los "Hillbillies") montañeses pobres, poco ilustrados, casi analfabetos pero gente honrada, noble y muy trabajadora; donde era de esperar encontrar problemas de patología medica y socio económicos similares a los de la población rural patagónica indigente. Los médicos residentes de la Universidad de Louisville atendíamos al Louisville General Hospital y al Children’s Hospital of Louisville. Finalizado mi entrenamiento, y al tener yo visa de emigrante, me pude quedar en USA, donde los abogados jueces y los médicos con residencias de entrenamiento completas, teníamos un brillante futuro económico, estabilidad y brillo social. La tentación para quedarse fue muy grande, pero cumplimos mi plan regresando a casa; Argentina (No a Buenos. Aires.) sino a La Patagonia (Gral. Roca, Rio Negro), donde trabajé intensamente, no solo en medicina asistencial sino en política. Para el inicio, recluté un pequeño grupo de médicos argentinos jóvenes entrenados en USA y Canadá con quienes creamos al Instituto Medico del Comahue, el pequeño hospital austral privado pionero en medicina asistencial moderna. Construimos el edificio por esfuerzo propio, y por administración, con la dirección técnica de mi padre (Ingeniero Prospero Saint Martin). Tuvimos muchos éxitos y fracasos. Nos integramos al Colegio Medico de General Roca, donde fui el primer organizador de la primer biblioteca medica patagónica. De nuestros Colegas Veteranos aprendimos la Filosofía Ético Moral Medica Hipocrática) y a ser médicos humanistas, antes que corporativos." Allí, practicando, aprendimos las normas básicas de cortesía entre colegas y pacientes. No fue fácil la convivencia y el pasaje armonico de lo (clásico) antiguo a lo (bueno) moderno, pero ¡lo logramos ... y muy Bien! En el ano 2000/2002 La Anarquía establecida Argentina desde el 10 de Septiembre de 1930 estalló y ya “no pude tolerar al criminal anárquico mamarracho republicano Argentino" que culminó con el "Robo Legalizado" (Google "The Legalized Theft" by Steve Hanke - CATO Instituto and/or Johns Hopkins economist) Como muchos de los argentinos ordenados, responsables, con importante capital de trabajo sin deudas, con algunos ahorros PERDIMOS TODO! Yo no perdí mis edificios, mi casa, mi Consultorio Radiológico) ni mi costoso instrumental diagnostico pero al quedar fuera de corporaciones medicas-hospitalarias corruptas, y fuera de los canales de facturación y cobro ... me encontré despojado de uno de los derechos humanos mas importantes “EL DERECHO A TRABAJAR” , del que depende mi “DERECHO A LA PROPIEDAD” y derecho a de “VIVIR en LIBERTAD” como me de la gana y sin pedir nada a nadie (¡LIBRE ALBEDRIO!) Por ello decidimos volver (ya estando jubilados) por segunda vez a USA. Hoy tengo otra residencia legal en Chicago (Oak Park, 60301) Mi mentor (en USA y Argentina) ha sido el Dr. Rene Favaloro (pionero del bypass coronario), con quien (cada uno por su lado) hemos compartido los mismos dilemas, para decidir volver, y para adaptarnos a esta ANARQUÍA Argentina (ver www.29deJulio.wordpress.com ) – La ANARQUÍA en la que cayó La Republica Argentina el 10 de Septiembre de 1930, fue causado por errores garrafales del GOBIERNO DE LOS ESTADOS UNIDOS DE NORTEAMÉRICA. (Presidente Herbert Hoover (POTUS 31) ...MAS... errores garrafales en la "ACORDADA UNÁNIME de LA TOTALIDAD DE LOS JUECES DE LA CORTE DE JUSTICIA ARGENTINA" ...MAS... errores garrafales del Gobierno del Reino Unido de Gran Bretaña (UK) ...MAS... el error de un soldadito con grado de General y cáncer de estomago Gral. Félix Uriburo) que no se atrevio a desobedecer al Jefe de su jefe cuando le ordenaron "violar a La Constitucio ... "en nombre de ella??) y asi TODOS ELLOS JUNTOS, en un contubernio internacional, por primera vez en la historia de La Republica Argentina depusieron a un Presidente Constitucional, (Presidente Hipólito Yrigoyen) electo dos veces (en periodos NO consecutivos), por el voto popular, y depuesto con la absurda e ignorante excusa (si no fue mentirosa) de ser "ser viejo e inoperante..."

Categories ANARQUIA, ANOMIA, ESQUIZOFRENA-ANARQUIA, It's the gavernment I'm affraid of, Juan B. ALBERDI, LAS BASES, LAWLESSNESS, TIRANIALeave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: