Private City
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The Private City: Philadelphia in Three Periods of Its Growth Paperback – June 1, 1987
by
Sam Bass Warner Jr.
(Author)
4.1 out of 5 stars
10 ratings
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This award-winning book charts the unfolding, from the Revolutionary War to the Great Depression, of the American tradition of city building and city living, using Philadelphia as a resonant example.
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Streetcar Suburbs: the Process of Growth in Boston, 1870-1900
With a skillful use of carefully researched detail, Warner relates the transformation from a handicraft to a factory system of production to the pervasive quest for private gain, and shows how that basic objective restricted the city's response to such community needs as education, health, and welfare. . . . His book is packed with suggestive historical detail. ― American Historical Review [This book] serves, in a way which no other city biography can claim to, as the historical analogy of urban America. ― Urban Studies Written with intelligent elegance and candor. . . . A fascinating book. ― Times Literary Supplement A splendidly economical and enlightening piece of urban history. . . . Contributes more than an important remedial lesson in the cultural foundation of the urban crisis. ― American Institute of Planners Journal
Publisher
:
University of Pennsylvania Press; Second edition (June 1, 1987) Language
:
English Paperback
:
288 pages ISBN-10
:
0812212436 ISBN-13
:
978-0812212433 Lexile measure
:
1450L Item Weight
:
15.2 ounces Dimensions
:
6 x 0.64 x 9 inches
4.1 out of 5 stars
10 ratings
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I was forced to read this for an urban development course. It's fine. A bit obsessed about Philly though. I mean, jeez.
This remains quite relevant, even today. This research is very thorough and helps one appreciate how each city has really grown and evolved.
What an amazing overview of the economic and industrial development of Philadelphia! This is a must read for anyone interested in understanding how 18th and 19th century immigrants, businesses and buildings influence the modern city.
Sam Bass Warner Jr. has given readers a unique study of the historic city's transformation as a maritime giant to manufacturing and retailing hub, to today's service economy. The perfect companion to the urban historian's landmark study on Boston's suburbs.
This book was required reading for a class I took on Urban History. It spoke of three phrases of development of Philadelphia. Bass referred to privatism as driving the city. The section I liked most was the middle section because he spoke of the philanthropic nature of many of the city's leaders. The final section was depressing simply because it pointed out the failures of the city and explained that people seemed to lose cite of community.
I believe that it is human nature to not want to read what yuo are forced to read. And i was assigned to read this in my HST301 class at oakland university. But goodness, Mr. Sam Bass Warner is interested in things that I am flat out not interested in. My teacher, for some reason, is just fascinated with the idea of privatism, however all it is is saying capitalism in a different way. I'm sorry I just don't care when Philadelphia put in waterworks and who were great contributors to the city. . .oh well
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Sam Bass Warner, Jr. formerly of the Department of Urban Studies and Planning of the Massachusetts Institute of Technology is a citizen scholar active in urban reform. In numerous books and articles about U.S. cities, suburbs, neighborhoods and metropolitan regions, he invites readers to address today's problems by summoning shared memories of our American urban experience. Showing how our social relationships, cultural values and economic choices have been expressed in actions ranging from land management and development to community gardens and government planning, Warner describes the process of city building and the social consequences it has produced. Here in "American Urban Form," Warner and his artist coauthor, Andrew Whittemore use an imagined city representing the past of major U.S. cities over 400 years, to reveal how cities have changed our landscapes, buildings, houses, the environment and the way we live.
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The 21st century will be the century of cities.
Over the next 30 years, 1.8 billion people are expected to move to cities in developing countries. While some will add to existing cities, others will migrate to small towns, transforming them into the megapolises of tomorrow. Shenzhen, for example, was a small fishing village of 300,000 people in 1980. Since being designated a special economic zone that year, it has grown to over 10 million inhabitants.
Understanding the best form of city governance will be crucial to ensuring that the emigrants lead good lives. However, even as economics has moved to focus on institutions , the literature on cities has focused instead on policy outcomes, rent control, zoning, and public transportation.
The process of governance is important for two reasons. First, we cannot know what the ideal policy is. Constraints differ in time and place. Second, even with omniscient mayors knowing ideal policies, there is little reason to expect them to implement those ideal policies.
So rather than focusing on outcomes, we should focus on how to achieve those outcomes. What conditions are necessary to produce the optimal amount of public goods in a city? Asking what is the ideal level of police, street sweepers, and garbage men is just as absurd as asking, "what is the ideal amount of shoe production ?" We simply don’t know. Markets constantly adjust between supply and demand, seeking this ideal level.
Of course, cities are not like shoes. They are far more complex. Disentangling the marginal benefits of public transportation, the police, or garbage disposal is extremely difficult. Further, as cities are spatially oriented, the application of the laws of economics differs from how we usually think of economic goods. Thus, the territorial nature of municipal goods is often used to justify the status quo.
However, what if there was a way to align incentives for the provision of local public goods, goods that the private sector doesn’t provide because of an inability to exclude nonpaying customers? What if there exists a system of governance that could provide an alternative to the morass of public interest that stagnates change in cities today? What if these cities could not only provide local public goods but also institutional change to jump-start economic growth? I argue that private cities could do just that.
Proprietary communities are communities defined through private property. A common example is a mall. It is owned by a proprietor who rents out space for income. However, in order to increase the value of the store space, the proprietor also must provide public goods, security, lighting, and open spaces inside the mall. Proprietary communities typically lease land to residents, with revenue the result of increased land value from the provision of public goods.
Proprietary communities offer a solution to a host of problems commonly assumed to justify government intervention. Private property internalizes externalities . Proprietary communities take advantage of that fact by creating private property over land spaces traditionally thought of as public domain. They work by creating a residual claimant in the provision of public goods. That is, proprietors keep as income the rents collected through leases after costs are deducted.
Economists tend not to worry about the provision of goods or services when such provision has the potential to make people rich. The private sector does a good job of making cars because people who make great cars will enjoy financial rewards. On the other hand, no one can get rich stopping overfishing, for example, which is why it remains a problem.
Proprietary communities offer people a way to get rich by providing public goods. Public goods affect the value of the land on which they are provided. A classic example is schools. Good schools can increase land value by thousands—if not tens of thousands—of dollars. Similarly, police, roads, parks, and sanitation tend to raise land values. Because a proprietor's or developer’s income depends on the value of the land he is renting out, he has incentives to provide public goods as part of his total offering.
The two closest examples of proprietary cities are Letchworth and Welwyn , small cities of around 30,000 each founded by Ebenezer Howard on Georgist principles before being nationalized after World War II. Walt Disney World is effectively a private city unto itself, demonstrating the scalability of the idea.
Imagining a modern proprietary city is difficult. Order is defined in the process of its emergence and the market makes fools out of those believing they can predict its path. However, a conservative guess is that a proprietary city might look similar to Sandy Springs , a city in Georgia of 93,000 people, that outsourced public services to private companies after a bankruptcy crisis, obtaining a superior provision of public goods at a lower cost.
Private cities would not be necessary if public municipalities successfully and efficiently provided public goods. Unfortunately, this is rarely the case. Cities often fail to provide even the most basic services to the people they are charged with serving, which can lead to the failure of the cities themselves. Detroit, as an extreme example, is a post-apocalyptic industrial wasteland. But even glimmering cities like Portland and Charlotte waste resources on public projects, which end up shifting waste onto the public at large.
And yet apologists for the municipal status quo employ the nirvana fallacy to argue against market alternatives. Any failure of markets to live up to their theoretical ideal is taken as a failure of markets themselves. Government is rarely held to such a high standard. In other words, all too often the sometimes messy reality of markets is compared to some ideal government. Most people simply assume government should provide certain goods and services, and that assumption is rarely affected by the ongoing realities of government failure.
Schools—not just the bricks and mortar, but the education—are often among the top items on a city budget. While there is a consensus on the need to improve schools, most people don’t realize how bad they are. CBS reports that “about half of the students served by public school systems in the nation's largest cities receive diplomas.” The failure of American public schools is not about a lack of resources either. Per capita spending has more than doubled since the 1970s, showing no corresponding rise in test scores.
The problems with city governments are not limited to their failure to provide public goods. They also actively supply public bads—that is, goods or services which harm the public interest.
One such public bad is rent control . There are few things economists agree on, but almost universally, economists think rent control policies are disastrous. Like many other policies, rent control favors current residents over future residents, dynamism, and economic growth. By putting a price ceiling on rents, investors are discouraged from investing in new housing.
Zoning similarly raises land prices. Edward Glaesar and Joseph Gyourko found that in many American cities the price of a new home was the construction materials. They argue that the primary cause of high housing prices is zoning and other land use controls, not market forces.
Cities enact such disastrous policies because they are often controlled by special interest groups. The fight between Uber and local taxi cartels is an illustrative example. The common critique of Uber is that if it does provide a better service, it should be able to win by playing by the rules. What this argument fails to realize is that the “rules” often exist precisely to prevent this kind of competition. Local companies protect their rents by lobbying for legislation that empowers them over competitors, preventing the creative destruction necessary for economic growth.
Police and courts have always been considered a foundational part of government. Allowing private cities to have their own police forces seems like a perversion of justice—that is, selling justice to the highest bidder. What if the poor and minority groups are treated unfairly? But how do actual city police currently conduct themselves? And are there examples of successful private dispute resolution?
Consider New York City. After 9/11, the city created the Demographics Unit, whose primary purpose seems to have been to spy on Muslims . The city eavesdropped on conversations, recruited informants to gather information on mosques, and mapped gathering areas of Muslims. Despite all this, the unit was unable to generate a single lead.
Perhaps the worst policy is stop-and-frisk . It amounts to oppression of minority male youths. An average of over 500,000 stops occurred annually over the last five years. Over 85 percent of those stopped were not ticketed. Such stops are often aggressive and humiliating , violating basic norms of human decency.
Such instances of abuse are not aberrant; they are the norm. Both stop-and-frisk and the Demographics Unit were official department policies. But these problems are not unique to police, they are also endemic in our courts.
There are huge racial disparities in drug sentencing. Despite similar drug use rates between whites and blacks, blacks are incarcerated at 10 times the rate of whites. Debtor’s prison, despite a nominal ban, is also making a comeback. It is increasingly common to jail people for failure to pay fines. Because poor people rarely have cash on hand, their entire lives can be disrupted by a single ticket.
While government police and courts are often assumed to be more competent and judicious than they actually are, the relevant question is, "As compared with what?" Despite their flaws, perhaps they are still better than private police and courts.
There are few examples of private police; however, international trade proves the possibility of private courts. Most international trade is done without resorting to State justice. Peter Leeson found that State enforcement of trade increases trade by, at most, 38 percent. While a substantial amount, it is well below what common assumptions about the need for State enforcement of property rights would imply.
The same logic behind private property rights generally applies to the private provision of legal services. Companies that do a good job of providing legal services attract more business, while companies that are unfair and arbitrary lose business. Private cities would want competent and friendly police to attract the working class and a good legal system to attract foreign investment.
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