Thank You - Brandon
Zoning laws, the fact that the ghetto is not an appealing place to open a new businesses, rent control, minimum wage, child labor laws, criminalization of drugs, protectionism, affirmative action, ect.
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Things I would blame the formation of ghettos on:
1. Welfare that creates incentives for young, single women to have illegitimate children and for capable workers to not work and instead become criminals.
2. Drug laws that prevent successful inner city entrepreneurs from doing their work and hiring others.
3. Shitty public schools that entrap inner city kids into a "culture of poverty."
4. Shitty public courts and police forces that do not protect inner city residents from crime.
5. Public housing, which is usually in disrepair and creates a pro-crime psychological arena. The bureaucrats in charge of public housing are usually not able to prevent crime on their premises, either.
6. Minimum wage laws that prevent the least skilled inner city residents from getting a job.
7. Unions that artificially raise wage rates that prevent the least skilled inner city residents from getting a job.
8. High taxes and regulations which prevent businesses from hiring inner city residents and new small businesses from springing up in inner cities.
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Ironically kaju, those are all the things Marxists find essential (with the exception of drug laws). According to them, there isn't enough of what you enumerated. We need MOAR!
krazy kaju: 7. Unions that artificially raise wage rates that prevent the least skilled inner city residents from getting a job.
I thought that high union wages give employers an incentive to hire non-union workers.
If I and my neighbor are running competing lemonade stands, and I arbitrarily raise my price, it gives customers an incentive to buy my neighbor's lemonade instead of mine. Am I missing something?
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ama gi: krazy kaju: 7. Unions that artificially raise wage rates that prevent the least skilled inner city residents from getting a job. I thought that high union wages give employers an incentive to hire non-union workers.
In some cases, you have to join the unions or unions have special gov't privileges that wouldn't allow it. Also, unions would pressure employers to give unskilled workers wages that aren't warranted.
Those are all reasons why poverty happens in general, but why poverty happens principally in the ghettoes can only be blamed on moral degeneration.
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February 17 - 1600 - Giordano Bruno is burnt alive by the catholic church. Aquinas : "much more reason is there for heretics, as soon as they are convicted of heresy, to be not only excommunicated but even put to death."
ama gi:I thought that high union wages give employers an incentive to hire non-union workers. If I and my neighbor are running competing lemonade stands, and I arbitrarily raise my price, it gives customers an incentive to buy my neighbor's lemonade instead of mine. Am I missing something?
You're assuming we live in a free market society. Things are different when it is relatively easy for labor to unionize against the wishes of the employer. Things are also different when big unions can come in and forcefully unionize businesses due to regulations.
Poverty, it's all about the shoes.
10Brandonr:I don't really believe that. Morals of a society don't really determine prosperity, and the free market naturally encourages and provides incentives to morals that induce prosperity. So if there is moral degeneration within the slums (a better word than 'ghettos', since 'ghettos' imply race), then it is because of restrictions in the free market, specifically within those areas that become urban slums. At least thats my opinion. Also, thanks for the answers, they really do help. Does anybody know of any articles or literature on the the subject or possibly on zoning laws?
I've read that rent control stops property values from rising, making it unprofitable to keep properties in good repair.
I would also blame controlled substance laws, which make it profitable for people to join a drug-dealing operation rather than find legitimate employment.
I believe that Walter Block's "Defending the Undefendable" has several sections that relate to the general theme of your questions.
Also, Robert P. Murphy's "Politically Incorrect Guide to Capitalism" has several sections that are relevant.
I have both in print, and I don't know about free sources.
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