Saturday, January 3, 2009

Growth and Prosperity

A week or so ago I recommended a series of short lessons on economics by Chris Martenson. I was listening to one of them the other day in which Martenson said something I wish every township supervisor and county commissioner would take to heart: Growth does not equal prosperity. He was talking about economic growth, but what he said got me to thinking about the belief that land "development" is good for the economic well-being of a region.

I could never understand the argument that erecting more housing developments, more shopping malls, more apartment complexes, etc. makes a community more prosperous. In fact, I never could see how it doesn't have exactly the opposite effect. The more people who crowd into an area the more services - police, fire, schools, highway maintenance, etc. - that are needed to support them. This not only requires higher taxes, but it also results in an inevitable erosion of the quality of life that comes with more traffic, more crime, and fewer open spaces.

The rejoinder is, of course, that the more businesses there are in an area the more jobs it creates for the residents, but how is this so? If job opportunities increase, the expanded opportunities will simply draw people looking for work who will move in from elsewhere to fill the openings, and that just results in a demand for even more housing, more traffic, more services, higher taxes, etc. Yes, we are told, but with more people in an an area the businesses do better, but if a business profits it isn't long before more of the same type of businesses start up and the profit just gets distributed over more competitors.

Growth is often a wash, a treadmill. Whatever advantages accrue from having more people living and working more closely together are cancelled out by the higher costs they impose. The more growth there is in an area the more there is of everything else that diminishes those qualities which made a community a great place to live in the first place. This is, in my opinion, true of the county in which I live, York Co. in Pennsylvania, and I suspect it's true everywhere. Some people have benefited from the development of York Co. over the last thirty years, to be sure, but I don't see how the county as a whole is a better place to live today than it was, say, in 1970.

RLC