Public Goods, Redistribution And Rent Seeking (The Locke - download pdf or read online

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Extra resources for Public Goods, Redistribution And Rent Seeking (The Locke Institute Series)

Sample text

This would of course only be true if the rest of the householders stayed in the collective organization. The temptation was too great, and the collective organization broke down. The area is still unconsolidated, although a number of separate big buildings have been built on parts of it. Not too long ago in connection with reforms that were mainly pushed by the political left, the government was brought into such areas. It was called ‘urban redevelopment’ and led to very considerable profits to those people whose homes or businesses were in the redeveloped area.

This implies that charitable impulses make even small democracies help the poor. 1 on payments that were made. The arrangement guaranteed income to anyone. The income was not generous. It amounted to about a quarter of the wage of common labor. This means of course that it was different in different counties, but would prevent severe deprivation. With the Great Depression, the program was taken over by the federal government and it’s not obvious whether this meant that the poor were benefited or injured.

Further, at least in my case, I felt guilty about that annoyance. Thus in a way I had another externality inflicted on me by the poor. I should say that I do not think any of you will be sympathetic with me indeed I’m not sympathetic myself, and as I said above, I felt guilty about my own feelings. There was no prospect of my making any significant dent in the problem by personal charity and indeed to make a gift to the beggars was positively dangerous. The fact that you were charitable would get around and you would find yourself continuously having to fight off further beggars.

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