Here’s another appalling eminent domain abuse story. Ben Penner is the owner of American Formal Wear, a shop that was forcibly relocated to make room for H&R Block’s new headquarters:
“Right now they have a tall fence around us; it looks like we are in jail,” Penner said. “We haven’t got the new building done yet, and they are forcing us out. We’ve been paying taxes for 60 years, and I think they are treating us shamelessly. They like H&R Block better than us.” Penner wants a couple more weeks to move.
But Andi Udris, president and chief executive of the Economic Development Corp., said Penner wanted a two-week extension two weeks ago and was given more time to move than some other businesses because he was relocating, not closing.
“We want to make sure he has enough time to get out, because we’re not kicking him out onto the street. But on the other hand, he doesn’t look like he’s a person ready to move,” Udris said. “I cannot jeopardize a multimillion-dollar project that really is at the heart of getting downtown revitalized because one person has a hard time understanding that this time the neighborhood is going to get redeveloped.”
“Getting downtown revitalized” is an interesting way to describe his project. Mr. Udris seems to believe that the vitality of a city is depends on having some wise city planner putting all the right pieces in place. If you’ve got a large corporate headquarters “anchoring” a “district,” and you bring in the requisite number of highbrow shops and restaurants and some suitably trendy condos, the city will thereby become “revitalized.” And if (most likely, when) those begin to deteriorate, that’s evidence that even more “revitalization” is needed, and so the city will embark on another round of forcible relocation of successful businesses, demolitions, and heavily subsidized imports of more desirable businesses.
This is strikingly similar to the Bush administration’s attitudes toward Iraqi reconstruction during the early months of the Iraq war. There, too, the Bush administration vision for Iraq was defined in rather concrete terms: the mission will be accomplished when we capture or kill enough of the bad guys. To that end, the administration proceeded in a rather ruthless fashion to get rid of as many bad guys as possible. They banned Baath party members from high office (many of the bad guys were Baathists), disbanded the Iraqi army (many of whom had been Saddam loyalists) and began rounding up large numbers of Iraqi civilians who were suspected insurgents.
But strangely enough, this hasn’t made Iraq, more peaceful, stable, or democratic. Every time we kill an insurgent, three more seem to spring up in his place. The reason is that our policies have failed to treat the Iraqis as human beings, individuals with their own needs, desires, and concerns. When we disbanded the army and banned Baath party members from public service, we did indeed remove some bad people from positions of influence, but in the process we also threw a lot of innocent people out of work. When we raided neighborhoods and rounded up thousands of suspected insurgents, we did catch a few bad people, but we also humiliated a lot more innocent people in the process.
What we should have done is to pay careful attention to the existing structures of Iraqi society and work hard to earn the trust and support of those who already have influence. It also would have been good to bend over backwards to respect the rights of ordinary Iraqis, the vast majority of whom were not, at the outset, involved with the insurgency. The key to success, in other words, would have been to treat the Iraqis like individuals worthy of respect, rather than interchangeable game pieces to be moved around the board at the convenience of American commanders.
If we had gotten those fundamentals right (and I’m not sure we could have, given our limited resources and even more limited understanding of Iraqi culture) the macro-level aspects of Iraqi society would have taken care of themselves. Instead, we went for the macro-level stuff first. We pushed for elections and the writing of a constitution, as though these could bring law and order. But that gets things precisely backwards. Good micro-level institutions are a precondition, not a result, of democratic government.
Precisely the same principle applies to revitalizing a city. A city’s vitality is the result of hundreds of thousands of people voluntarily choosing to locate there due to the wealth of economics, social and cultural opportunities available. Successful corporate headquarters, hip bars and restaurants, and trendy condos are the result, not the cause, of city vitality. If you get the fundamentals right, by making the city a place that’s hospitable to businesses and residents, the trappings of trendiness will come all by themselves, as talented and trendy people will flock to the area.
But trying to “revitalize” an area by mimicking the most superficial indicia of a trendy urban area is putting the cart before the horse–just like holding elections and writing constitutions before you’ve managed to pacify cities and towns.
In particular, what Kansas City needs is a lot more people like Ben Penner, hardworking small businessmen who have a stake in the city. Some of them will be successful and grow to be the next H&R Block. All of them will generate new jobs and tax revenue for the city. But instead, KC seems to believe that the way to “revitalize” the city is to kick small businesses out of the city to make room for larger business.
That creates three problems. First, it does violence to the existing sources of vitality of a city, likely causing additional residents and businesses (for example, the suppliers and customers of the evicted businesses) to leave the city. Second, to the extent that it does attract some new businesses, they tend to be the most mercenary, companies like Wal-Mart that will come into a city for as long as there are subsidies available, and then will close up shop and move to the next city as soon as the subsidies dry up. Attracting those kinds of businesses is a recipe for future problems. Most importantly, it undermines the security of everyone’s property rights, which can itself be a major cause of “blight.” People who expect that their property might be forcibly seized in a few years are far less likely to invest in maintaining or improving that property today. Hence, “blight” becomes a self-fulfulling prophesy, and “revitalization” a never-ending process.