We often hear politicians and pundits denounce property rights. Property rights, we're told, protect the fat cats against the needs of the public. They're a tool for keeping the little guy down.
Like a lot of what we hear from politicians and pundits, this is exactly the opposite of the truth. The fat cats don't need the protection of property rights, because they already control the political system. It's the little guy (or gal), the one without political juice, who needs strong property rights for protection from the fat cats and the politicians they control.
We often hear politicians and pundits denounce property rights. Property rights, we're told, protect the fat cats against the needs of the public. They're a tool for keeping the little guy down.
Like a lot of what we hear from politicians and pundits, this is exactly the opposite of the truth. The fat cats don't need the protection of property rights, because they already control the political system. It's the little guy (or gal), the one without political juice, who needs strong property rights for protection from the fat cats and the politicians they control.
This was demonstrated again this week, as the last legal barrier (a possible US Supreme Court review) to Columbia University's efforts to condemn and seize two businesses -- Tuck-it-Away Self-Storage and a gas station owned by Gurnam Singh and Parminder Kaur in West Harlem -- vanished.
Columbia said the condemnation was necessary to support the university's "vision" for a new campus; school President Lee Bollinger called the victory "a very important moment in the history of the university."
It was an important, if not especially proud, moment for Columbia -- but it was surely a bigger moment in the lives of those West Harlem business owners, as their property gets taken away to promote the "vision" of what is, in fact, a multibillion-dollar corporation servicing the daughters and sons of the wealthy, the powerful and the connected.
Traditionally, the "public-domain" power was used to acquire property needed for things like roads and bridges. It's still often defended in those terms, but the "public use" required for such takings has now been interpreted by courts to include pretty much anything the government wants to do with the property -- including handing it over to someone else who just happens to be wealthier or better-connected than the original property holder.
In this case, the government lacks even the weak excuse that the change will boost tax revenues, since -- as Megan McArdle of The Atlantic Monthly pointed out -- the property is being transferred from taxpaying businesses to a largely non-taxpaying enterprise.
Part of the American Dream was the expectation that if you started a business, you might go broke but you didn't have to worry about the government seizing your business on behalf of those with more political juice. That sort of thing was for Third World countries, corrupt kleptocracies where connections mattered more than capability.
Not anymore. In fact, some of those formerly corrupt Third World countries have started providing stronger protection for private property, as they've realized that the more power you give to politicians and their cronies, the less incentive people have to try to succeed through hard work. What's the point, if you're at the mercy of the cronies?
if you really look at this right. this is what is happening to America as a whole. small banks can't compete against government banks that can't fail
