27 February 2011

"The Triumph of the City" by Edward Glaeser (2011)

Not every store should be a Walmart; not every city should be a Houston. Hugo Boss and Club Monaco are acceptable, as are Paris and San Francisco. Boutique stores sell services and limited memberships in clubs valued in excess of the goods' costs. Similarly, an apartment priced at several times its construction cost need not betray a poor policy or a market failure. The mark-up may reflect panoramic views and the company of self-selected neighbours.

Advances in transportation technology make it unnecessary to build cities next to scarce natural transportation hubs. Instead of being rebuilt, cities can follow the life cycle of youth and fast growth culminating in boutique retirement or irreversible dilapidation, or anything in between. For the life cycle to be aligned with the humanity's interests, however, urban development must not be constricted by myopic zoning laws, not less damaging than labour-union regulations.

Societies thrive through their members' specialisation, mediated by markets and democratic delegation. A society matures when delegation is either immune to the capture by narrow interests (the European dream) or, in recognition of that potential capture, is minimal (the American dream). Cities must either be governed so as to attend to the joint welfare of their suburbs, exurbs, and down-towns, or not be governed at all---and certainly not governed by warring neighbourhoods, each advocating its parochial version of conservation. City planning ensures that development is not aborted by vested interests when property rights are neither absent not clearly defined.

Suburbs are not evil. Most individuals face trade-offs. Most prefer suburban hibernation to urban deprivation. The former is made more affordable and the latter is made more prevalent by haphazard regulations, which inter-city competition shall help correct. 

Edward Glaeser's policy prescriptions are guided by his socially inclusive perspective and respect for individual choices. These choices are prejudiced by regulations. Furthermore, many underestimate the city because of their environmental ignorance, neglect of urban serendipity, and unawareness that socialising is indispensable for becoming human. That the online intercourse cannot replace physical socialising is Mr Glaeser's premise. If this replacement occurs, individuals will become less human, which need not imply less happy.