post

Why is Housing So Expensive?

Something that VIA frequently gets requests for is help with rent payments. Why is it difficult for so many people to afford housing? Why is housing so expensive? The standard answer is that it’s those lazy landlords, sitting on piles of money and smoking cigars, who are to blame. This seems to make sense at first glance—after all, aren’t the landlords the ones who are charging the rent? But lets take a closer look by examining a case from a simpler time: that of Pa Ingalls in Little House on the Prairie.

Pa Ingalls, though frequently short on luck, was an entrepreneur at heart. Anticipating that a thriving town would one day stand on the rolling grasslands, he picked a deserted spot nearby and started building a farm. This is called homesteading—in the words of John Locke, Pa Ingalls had “mixed his labor” with the land, and in doing so made it his property. He had built a nice little farm when disaster struck—worse than a prairie fire or drought. The United States government decided that it owned the land that Pa Ingalls had built on, and he had to leave to make room for indigenous Americans (who were, incidentally, forced to moved from other land that the government had also decided it owned—but that’s another story).

Fast forward a hundred and fifty years, and we see that the cause of the Ingall’s housing crisis is the same as our own: the government. At the simplest level, a person who needed a house could simply go to an unowned spot of land and build a shelter—not an ideal long-term solution, but everyone has to start somewhere. This simple expedient is forbidden, however, because the government has decreed that it owns all the land in America. Why, when it has not done anything at all to the land to make it the property of the government? Because, that’s why—and if you build a house on it, you’ll only be kicked off and have your house stolen—if you’re lucky.

In a free market, the high price of housing would cause people to want to build more housing—because they want the profits.

Fortunately, in a complex economy, there are people who are much better at building a house or apartment than the average person. In a free market, the high price of housing would cause people to want to build more housing—because they want the profits. But with more housing available, the price would decrease, since renters would have more options. So what stops that from happening? Again, the government. In addition to directly increasing the cost of housing—such as through property tax—the government indirectly increases the cost. Zoning laws, building codes, and other rules and regulations prevent new housing from being created when it is needed. Not coincidentally, this makes some people demand that the government Do Something, which usually leads to more government control over people’s lives.

That’s where voluntaryism comes in. Right now, all we who are more fortunate can do is help people pay the high costs that government has imposed on everyone. But in a truly free society—one without Big Brother telling everyone what to do—how would housing be provided for the less fortunate? The possibilities are nearly endless. Simple charities—to build new housing or pay bills—would be one way. Subsidized or even no-cost housing could be made available by businesses—people are much more likely to shop at a store they live right next to than one across town. Microliving in low-cost rental living pods, house-sharing agreements, and other creative voluntary arrangements would flourish. The answer to “why is housing so expensive?” can be summed up in one word: government. But in a voluntaryist society, the solutions to the housing problem are limited only by human imagination and initiative.

This article was originally published by Being Libertarian.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Share on print
Print
post

Private Businesses Are Helping Coronavirus Victims

While politicians are shutting down stores and endlessly debating about how to spend your tax money, private businesses are helping coronavirus victims. There are too many stories for use to document them all, but here’s a quick selection.

After Governor Herbert closed the government schools, Fat Daddy’s Pizzeria in Provo, UT felt awful about the children who relied on the school lunches. Similar to us at Voluntaryism in Action, the good folks at Fat Daddy’s decided to do something about it. That something was a free lunch—to any school-aged child who needed it.

Private Businesses Are Helping Coronavirus Victims
Fat Daddy's Facebook post announcing their voluntary charity.

They weren’t expecting the volume of responses—not just from people wanting help, but from people offering help. Donations of money poured in. People called up to volunteer to serve food. In defiance of the callous unconcern of the government to people grown dependent on them, Fat Daddy’s brought the community together to help voluntarily.

Private Businesses Are Helping Coronavirus Victims
Fat Daddy's did not expect such an amazing response from their community.

Unlike pizza, one thing that’s difficult to find in Provo, UT is a stiff drink. With the government’s wave of restaurant and bar closures, it wasn’t just people in UT having a hard time feeling the Irish spirit(s) this St. Patrick’s Day. Hardest hit were the bartenders who depend on the revenue for their livelihood. Enter Jameson Irish Whiskey, who has pledged to donate $500,000 to support bartenders affected by this crisis.

Private Businesses Are Helping Coronavirus Victims

Not all help has been as urgent as feeding children and paying bills. Lives have been upset by the shutting down of college an university campuses, with many students left in a painful state of limbo. U-Haul has offered these students 30 days of free self-storage to help get them through the crisis, in addition to reduced rates for truck and trailer rentals.

Private Businesses Are Helping Coronavirus Victims
U-Haul adds their efforts to help mitigate the fallout from the government's response to coronavirus.

With government grade school closures, a lot of parents have found themselves at home with their children for multiple weeks. These parents, made dependent on the state for education, are lost when it comes to teaching their own kids. Yet again, private businesses are helping coronavirus victims. The Facebook page Amazing Educational Resources compiled a list of 30 education companies offering free subscriptions due to the failure of the government schools in this crisis. Here is a link to the spreadsheet, so you can check it out yourself: https://docs.google.com/spreadsheets/d/1t3r618pd8MAi6V87dG2D66PtiKoHdHusBpjPKXgm36w/htmlview?sle=true&usp=gmail#gid=0

These are only a few of the examples that voluntaryists shared in the VIA Community Group on Facebook. There must be dozens—or even hundreds—that I don’t know about. What’s really amazing is that all of these businesses and people helping others have also been affected by the government’s draconian measures. But they looked around, saw people less fortunate, and reached out to help—as people always do, and always will. That’s why voluntary aid works.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email
Share on print
Print
post

Government Welfare vs Voluntary Charity

At first, the prospect of government giving welfare to people might seem like a net good. “What heartless person could oppose these poor people receiving aid?” one might think. However, if the process of government welfare is examined, its surprisingly sinister nature becomes apparent.

In the first place, the money that the government spends is not its own—the money has been taken from other people via taxation. There are many different ideas on the morality of taxation—everything from it being a necessary part of society to it being outright theft. No matter your opinion of taxation, the fact remains that the tax money can no longer be spent as the tax payer wishes, but is now disposed of at the discretion of the government. Not only that, but since taxes are mandatory collections as part of a cold bureaucratic system, the taxpayer exercises no volition in the matter and cannot claim to have done a good thing—in fact, he cannot claim to have done anything at all. As Nobel laureate economist Friedrich A. Hayek wrote in The Road to Serfdom, “We are neither entitled to be unselfish at someone else’s expense nor is there any merit in being unselfish if we have no choice. The members of a society who are in all respects made to do the good thing have no title to praise.”

“Very well,” one might say. “I can’t be praised for something that I had no say in, but isn’t the welfare recipient still better off, and all society better off by extension?” Not necessarily. For when the welfare system is examined, we see that people are given money if they earn below a certain income, or work less than a certain number of hours. The intent, presumably, is to help make up for their small income—as some people say, they don’t get a “living wage.” But if we look at it at a slightly different angle, it’s plain to see that the welfare recipient is in fact being paid to earn less than a certain amount! For illustration, let’s say the cutoff for government welfare is $20,000; everyone who makes $20,000 or less receives $5,000 from the government. A person who makes $20,000 per year but could get a harder job that pays $25,000 per year will be discouraged from getting the higher paying job! Why should he work harder when he can change nothing and still get paid? Of course, not every welfare recipient thinks like this—some genuinely only want a little help getting back on their feet. But what the government welfare amounts to is a subsidy of under- and unemployment. That can’t be said to really help the welfare recipients—or anyone else in society.

Well, almost anyone else. There is one class of people who are helped by people being on welfare: politicians and government bureaucrats. The politicians, by having a false appearance of charity (how sincere is the charity when you’re giving away other people’s money?) can get more votes. The government’s “humanitarian” bureaucrats keep their jobs as long as people are on welfare—their good requires that other people be in want. Isabel Paterson put it this way in The God of the Machine: “What kind of world does the humanitarian contemplate as affording him full scope? It could only be a world filled with breadlines and hospitals, in which nobody retained the natural power of a human being to help himself or to resist having things done to him.”

Waiting on government welfare during the Great Depression.

How does this frightful picture compare with voluntary charity? For one thing, nobody is forced to give to anyone unless they want to—and nobody is forced to accept charity unless they really want and need it. Because of this, charitable people are able to choose who they give to—and in what way. It can be on a local level, either personally or in small groups, or through larger charities like VIA. This personal approach is almost always more effective than politicians dispensing welfare funds through a rigid bureaucratic structure designed to benefit whomever can lobby most effectively.

Voluntary charity also differs in that it’s aimed toward the long-term prosperity of everyone involved. The givers receive nothing in exchange for helping those less fortunate except a feeling of satisfaction—either from obedience to religious doctrines or just plain human kindness—at having helped their fellows. Like in any other voluntary transaction, the spender is anxious to get the most out of their money—in this case, they will want it to do the most good it can. And the most good it can do is to get people to a point where they no longer need charity! Therefore, the giver of voluntary charity has an incentive to maximize the well-being of the receiver of the charity—he has no reason to keep poor people poor, as does the politician.

The recipient of voluntary charity is also in a better position. Faced with people who are genuinely interested in their long-term success, the recipient is able to ask for whatever help he needs as opposed to having to meet the unyielding requirements of the government welfare system to receive a one-size-fits-all benefit. The recipient also has an additional incentive to make an effort towards financial recovery, because with a plan to follow and goals to achieve—thereby showing the giver the good their gift will do—he’s more likely to receive donations than someone simply asking for a handout.

For all the reasons above and more, we at VIA believe that voluntary charity is vastly superior to government welfare—for the giver, the recipient, and society at large. We believe it so much that we’re here doing it now, every day, with all our hearts—and we invite you to join us, voluntarily. After all, as Murray Rothbard said, “No action can be virtuous unless it is freely chosen.”

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn