Poverty in the ghettos

[10Brandonr]

What causes the formation of those inner city economic ghettos. What restrictions are preventing the employment and economic advancements to those living in ghettos, particularly black americans? What necessary policies must be implemented or abandoned in order to allow the slums to become economically healthy and pursuit prosperity? Are there any articles on the causes of poverty within the ghettos?

[Andrew]

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.

[krazy_kaju]

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.

[Wren]

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!

[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.

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?

[Wren]

@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.

[Stranger]

Those are all reasons why poverty happens in general, but why poverty happens principally in the ghettoes can only be blamed on moral degeneration.

[Juan]

Hahaha. Priceless.

[krazy_kaju]

@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.

[liberty_student]

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?

[ama_gi]

@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.

[jason4liberty]

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.

[Byzantine]

Government externalities such as welfare and the minimum wage are universal, so your conclusion begs the question of why only the inner city ghettoes are so lopsidedly affected.

@10Brandonr

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.

The urban slums are not race-neutral. They are almost entirely black or Hispanic.

[Byzantine]

@10Brandonr

Morals of a society don’t really determine prosperity, and the free market naturally encourages and provides incentives to morals that induce prosperity.

You are contradicting yourself.

Do you believe a free market is possible in a society that encourages theft and government dependency?

[Byzantine]

The short answer is low IQ.

[10Brandonr]

Sorry, I was writing with a lack of clarity. What I meant is that a freemarket encourages voluntarism and behaviors necessary to peaceful trade, such as honesty, independence, intelligence, ingenuity, good work ethic, and non-aggression(respect of life, liberty, and property). The reason many individuals within the slums do not adhere to these principles is because governmental forces create incentives to aggression. What I’m saying is that it must be trade restrictions and governmental social programming that create moral degradation and poverty.

But on the otherhand, morals not directly dealing with trade are just products of culture and human nature and could not reflect prosperity or poverty.

[10Brandonr]

I realize that the slums are not race neutral, but whether you’re white, black, or hispanic, the slums are a difficult place to live. But I don’t believe that race or even IQ can prevent prosperity in a freemarket. Ultimately it appears that racist, nativist, socialist, and protectionist regulations and laws, not only put vulnerable individuals into poverty, but kept them there, and continues to keep them there to this day.

[Byzantine]

@10Brandonr

The reason many individuals within the slums do not adhere to these principles is because governmental forces create incentives to aggression. What I’m saying is that it must be trade restrictions and governmental social programming that create moral degradation and poverty.

But drug laws, welfare, zoning, etc. are universally applicable, yet not everybody is violent and unemployed. So on second thought, I think Stranger is more right. The slums are products of poor choices, unless you’re saying certain classes of people lack free will.

[10Brandonr]

They certainly don’t lack free will, but instead they are seduced by “free lunch” programs, and when they try to leave and progress they are barred by regulation and are “force fed” their “free lunches”. I’m wondering how it’s possible for nearly an entire population of separate individuals within an area to be capable of making “poor choices” that lead to their poverty, since ghettos of nearly every race have existed within some part of the world. Something must be preventing them from making personal progress, since most people don’t enjoy poverty and attempt to make progress. So if some laws and regulation are universally applicable, then I’m wondering what laws and regulations (and how they) uniquely affect the individuals within a slum, and how other laws and regulations particularly screw-over the slum populations, while leaving other populations less affected?