Regulated to Death Anarchist
Arguments Against Government Intervention
in Our Lives
Introduction
Jim Baker and Joe Peacott
The idea for this pamphlet came out
of our discussions concerning the role government rules and regulations, such
as housing codes, medical licensure, rent control, and federal food and drug
laws play in helping or hindering our lives. The purpose of such intervention
in our lives by all levels of government is ostensibly to protect the weaker,
poorer, or less calculating among us from the predations of those who are
stronger, richer, or shrewder. As anarchists, we certainly wish to change
society in such a way that those who are taken advantage of, exploited, and
harmed by others are better able to escape from or avoid such situations.
However, as we argue in the following articles, government rule-making has not
only failed to prevent abuse, but has, in fact, worked to further disadvantage
those it was intended to help
We are being regulated to death,
both literally and figuratively. People die of cancer or AIDS because they are
denied access to life-extending drugs by the FDA. People die on the streets
during winter, while city governments strangle the housing supply with their
housing codes, zoning regulations, and rent control. People die of
complications related to HIV, which they acquired from sharing needles because
some state governments prevent them from obtaining sterile ones. And this is
all because government intervention kills what is most important to us as
sovereign individuals: our freedom to choose how we live our lives.
We see widespread support for such
government regulation among people of all political persuasions, but are most
troubled by the attitude of those who, claiming to favor a free,
non-hierarchical world, either endorse such government activity, or are
unwilling to criticize it. While capitalist anarchists and libertarians have
been very vocal in their rejection of governmental "solutions" to our
day-to-day problems, little criticism of such intervention by the state is
heard among anarchists who embrace other economic models. Because of this we
felt there was a need for a non-capitalist anarchist critique of government
rules and regulatory bodies. We do not feel that getting rid of zoning laws or
the FDA is all that is necessary to make for a free society. We are anarchists;
we wish to see the total abolition of government and the monopolies and
privilege it upholds. However, the only way people will ever learn to live free
lives is by living as freely as they possibly can right now, in the present,
even in small ways, even in the context of an otherwise unfree world.
Tolerating, or, worse, encouraging further government intervention in our
lives, even when well-intended, simply breeds further dependence on the state
and less reliance on ourselves and our friends, our only hope for a freer
world. It is our hope that this pamphlet will encourage anarchists to move away
from such tolerance of statist "solutions," and toward more emphasis
on individual freedom and initiative.
Question Regulation
Jim Baker
Our society seems addicted to
rules. Every interest group feels that if it could only get the laws and regulations
it wants instituted, or those of its rivals repealed, that life would be so
much the better. But it doesnÕt work that way. All of these binding rules (and
more of them are on the way every day) simply confound our lives. Hippolyte
Havel caustically observed, ÒIf you wish an appliance that will shorten the
freedom of a neighbor, go to the legislature and have it made, — that is,
if there are none already in stock.Ó[i] Legislators
at every level of the state seem to believe that they have been elected to add
as much legal dross as possible to the already massive and contradictory body
of statutory law. There are so many invasive, impertinent and repressive laws
on the books now that almost every facet of our existence is constricted by
regulations which, in any given situation, demand this or forbid that or simply
complicate matters. All of this plays into the hands of that elite corps of
troublemakers, the lawyer/legislators who make, interpret and impose the
arbitrary and lucrative rules of the legal game.
At one time, ÒCommon Law,Ó that is,
the ostensibly fixed but actually flexible body of social custom, acted as a
partial restraint on the capricious rule of kings and statute-mongers. It is
this which was meant when the phrase, Òthe rule of law rather than the rule of
men,Ó was invoked. Juries were not restricted to following the letter of some
obnoxious law or precedent if it conflicted with the greater equity of the
Common Law. Judicial review didnÕt rest only with a Supreme Court, but with any
judge or jury, who could deliver a verdict that rejected the iniquitous demands
of some unfair bit of legal nonsense. Since the 19th century, however (and
despite the arguments of Lysander Spooner), we have surrendered our sovereignty
to the state to the extent that any whim of the legislature, no matter how
inane in its conception or invidious in its effect, becomes authoritarian law.
Equity, in all senses, be damned!
The fiction of democratic
representation can't cover up the oppressive nature of this legal game,
especially for individualists who reject any species of tyranny, majoritarian
or not. Nevertheless, the legislative process itself does provide some faint
chance that the worst proposals, whether falsely idealistic or downright venal,
will be exposed, debated and disposed of. Public debate may upset the progress
of some would-be laws, or allow for the mitigation of their excesses.
Anarchists are, of course, dismissive of this small mercy, yet it exists. But
there is an area of governmental rule-imposing that lacks even this
ameliorating factor, and which is often overlooked in debates about the
repressive nature of the state. This is the work of the regulatory agencies,
whose increasing domination over our lives is as ominous as of any other arm of
the state.
ÒA law nine pages long and an agency
of thirty-two civil servants becomes, over the course of more than two hundred
amendments, a law four hundred pages long and a bureaucracy of more than twelve
hundred. And finally there emerge many large, expert agencies that in an
economic sense are industrial planners and that in a political sense are a
distinct branch of government.Ó[ii]
There are many tasks that
regulatory agencies attempt to perform, as Thomas McCraw observes,[iii]
but we will only be concerned here with two; disclosure of information and
promotion of health and safety. These areas of regulation are as old as society
itself. They were once represented through councils that saw that community
standards were met in specific circumstances, or that specialized opinion was
available to the people in areas where common knowledge was inadequate. People
have had to rely on specialist knowledge since the time when it was the
province of elders and shamans. One needed to learn how to perform difficult or
dangerous activities through the help of others who had the requisite
expertise. Regulations that assured the content and price of bread, for
example, were a matter of community control before the Middle Ages.
In a complex world, there need to
be safeguards against objects and actions that can hurt us unawares, such as
products or practices which are known to be inherently dangerous;
well-intentioned things that experience proves to be harmful, such as asbestos;
or those that unscrupulous people have made dangerous through deceitful
activities. Individualist anarchists, despite gibes to the contrary, aren't
necessarily naively optimistic about the natural goodness of all people. Even
in an ideal social situation free of the distorting influences of class and
capital, human weakness would still lead to difficulties, although far less so
than now.[iv]
Cheating and adulteration would presumably always be temptations, while natural
dangers would, of course, be the same as ever. It is incumbent on a community
to help people with these problems, but not by simply forbidding things. A
revealed cheat is no longer invasive, no longer a cheat. Nor is the simple fact
of potential danger a reason for prohibition. In fact, the truly effective
product or pleasurable activity is often dangerous. It is up to the consumer to
weigh the dangers and take suitable precautions, not for the government to
protect a herd of dunces from everything beyond the safest possible pabulum of
life.
Now the question of regulation,
which at first glance reeks of an authority repugnant to anarchists, isn't as
simple as it might first appear. There are innumerable situations in this world
of ours where the individual is put at hazard through ignorance, or error, or
the duplicity of others, No person, no matter how well educated or informed she
or he is, can rely solely on personal knowledge or common sense to make the
right choice in every situation. People need reliable safeguards from the
effects of fraudulence, zealotry and ignorance in society, as well as sources
of dependable information through which they can make intelligent choices. For
example, regulations that require producers to thoroughly label their products
so that consumers can see whether they contain any harmful ingredients, or
insist that manufacturers honestly reveal the limitations or dangers inherent
in their merchandise, have an obvious value.
These sort of revelatory mechanisms
are quite consistent with anarchism, for they neednÕt restrict the freedom of
the producer while making it possible for people to make informed decisions
whether they will avail themselves of the product or service. We should note
here that the aim should not be to prevent people from making silly or even
irresponsible choices, for if that is what they truly wish to do, they should
do so. It should be to make it possible for such choices to be conscious and
deliberate, by insuring that all information necessary to make a knowledgeable
choice is available. It is irrelevant from an anarchist viewpoint whether
someone is considering the use of illegal pleasure drugs or going scuba diving
among sharks, as long it remains their free choice. However, it is preferable
that they are able to make informed choices, fully aware of the dangers or
drawbacks as well as the possible satisfactions of the experience. An anarchist
desires that no one is imposed upon or coerced in making an honest personal
decision. Available data should be accurate (and understandable), the pros and
cons honestly weighed, and the possible results explained. Other people's moral
biases and practical opinions should not have any weight, except insofar as
their knowledge about a product or experience is more extensive than one's own.
Such opinions, which need to be as objective as possible, are what we rely on
from experts.
Should we then accept some sort of
regulations? Bakunin struggled with the role of expert advice and authority in
his ÒAuthority and ScienceÓ: ÒDoes it follow that I reject all authority?
Perish the thought. In the matter of boots, I defer to the authority of the
bookmaker; concerning houses, canals or railroads, I consult the architect or
the engineer. For such special knowledge I apply to such a Ôsavant.Õ But I
allow neither the architect nor the ÔsavantÕ to impose his authority on me. I
listen to them freely and with all the respect merited by their intelligence,
their knowledge, reserving always my incontestable right of criticism and
censureÉ. I recognize no infallible authority, even in special questionsÉ.Ó[v]
He also observed that we are all subject to natural laws, but not necessarily
human science, which is always an imperfect and contingent assessment of those
laws. The natural laws will have their way, no matter what we choose to
believe, and the advice of experts may help us avoid the inevitable
consequences of error. The point is that the ultimate decision rests with the
inquiring individual, not the experts. Once we become subject to the authority
of the expert, we fall into the abyss of servility. It is in that abyss that
the regulatory agencies labor to immure us. By making us dependent on the rule
of experts and authorities, they enslave us all. It becomes a case of the rule
of men, not law, in the worse sense of the old saw.
The current role of the regulatory
agencies is both advisory and coercive—they not only tell us what the
experts believe are acceptable standards of procedure, but also force everyone
willy-nilly to follow them. This may appear salutary when it is a gargantuan
and rapacious capitalist industry that is being bitted and bridled (although
too often the agency is co-opted by the industry it is specially concerned
with). Certainly, the example of the lumber industry's treatment of the U.S.
old-growth forests makes us all anxious that something Òregulate,Ó i.e., stop,
this irreversible destruction. But it is just as liable to be the case that
some farmer on the economic edge is put out of business because the same
bureaucratic ruling says that they cannot remove a stand of 70-year old scrub
growth from their land. To a bureaucrat or an ecological absolutist a tree is a
tree is a tree, and that's all of it. However, most people would prefer that
while the rich and unconscionable be put to considerable trouble and,
especially, expense to deter them, that the little guys be treated in a more
considerate and equitable manner, and the case thoroughly examined in its real,
not its hypothetical, ramifications before they are prevented from doing what
is to their benefit. There is a real difference in scope, intent and effect
between the two cases, although it may be exactly the same regulation that
deters each. This is often referred to as Òequality before the law.Ó The
simplest solution, to regulate neither, creates other difficulties, as the examples
of the lumber, oil, and innumerable other industries demonstrate.
In real life, the biggie with the
motivation of greed and the resources to play the lawyer game has a good chance
of circumventing the most strictly specific regulation, while the little guys,
even when there is a legal opportunity, are thwarted by the expensive legal
defense (or simple regulatory obfuscation) the regulators can throw into their
path. In the end, the process is a reflection of the larger inequities of our
society, and thus more oppressive than helpful to the individual. Even if the
regulatory agencies were otherwise effective, this class/income inequality
would insure that their influence was pernicious. However, it is widely
recognized that not only are state and federal regulations ineffectual in
attaining their own stated objectives, but they have also become such
bureaucratic jungles as to actively subvert the very solutions that they were
instituted to implement.
One of the primary reasons for this
failure is the inherent inflexibility in the application of all regulations. It
is the usual downfall of authority. State officials make a fetish out of their
arbitrary rules and a necessity out of mindless consistency, so that the means
become more important than the ends. Once a rule has been promulgated, it is
adhered to even when the ostensible goals can be observed to be completely
perverted. If an agency approached each case with the intention of arriving at
an equitable and effective result through whatever reasonable means are
necessary, rather than as an opportunity to submit the situation to the
Procrustean demands of their regulations, then just possibly some good might
result. A group of arbiters, such as Kropotkin describes,[vi]
who intended to resolve, rather than create, problems might work, but the dead
hand of state bureaucracy makes this impossible. As it is, the whole thing
becomes another soulless game like the lawyer one, where results are sacrificed
to the intricacies of the play. The complete lack of considered judgment
results in the arbitrary and punitive enforcement of ill-advised rules,
resulting in lowest common denominator outcomes arrived at through unnecessary
but considerable effort and expense.
Thus, the regulatory process. as it
is managed by the state, is not only invasive, coercive and inequitable, but
also ineffective.[vii] It often
actively aggravates the very situation which it was created to ameliorate. We
must therefore come to the opinion that (Governmental or otherwise) regulation
simply can't work. But what then? The simple libertarian answer is:
ÒDeregulate!Ó Simply cease the whole process and let things settle out by
themselves. Philosophic anarchists might agree, as it is consistent with the
ideals of anarchism in principle, but those who are interested in a feasibly
revolutionized, rather than impossibly utopian, society might demur. Although
regulation doesn't work, the problems it was invoked to solve remain real
enough. We must reject not only regulation as such, but also a laissez-faire
approach which would continue to allow the unscrupulous and the deluded to
obstruct the needs and rights of others.
The individualist anarchist
rejection of any coercive and invasive action against persons (if not corporations,
although these may be made up of freely associated individuals) implicitly
disavows the old system of community controls that regulated things before the
rise of the modern state. In fact, the current evocations of ÒcommunityÓ and
ÒconsensusÓ by various reformers, far from heralding the liberty of the
individual, call for the reassertion of the local repression and narrow-minded
intolerance that generations of anarchists and other rebels fought as Òsmall
town opinionÓ and oppressive Victorian morality. As is so often the case, these
ÒradicalsÓ become indistinguishable from downright reactionaries, as with the
Dworkin/Comstock monster. Bigoted coercion and invasion, especially when
cloaked with good intentions, must be carefully avoided. Instead, the answer might come from a
division of the two parts of the regulatory system. The revelatory process
should be taken over by voluntary groups who could test, investigate and
analyze products and activities and publish as objective reports as possible
for the public. The inevitable skewing of such reports by the particular
outlook of the investigatory group might he moderated by an honest statement of
the position of the group, and by the existence of several parallel, yet
neither ÒofficialÓ nor competitive, testing organizations. The practice of
regulation and coercive enforcement as a result of investigations, however,
would simply he dropped. It would be up to the individual to utilize the
reports from one or more revelatory groups to insure informed consent. No one
has the right to censor or interfere with the free interaction of individuals.
On the other hand, whenever clear
and present dangers arise through the intentions or actions of either
individuals or groups (corporations), other individuals and groups need to
reserve the responsibility to defend themselves against invasion, to the extent
of being ready to take preemptive action as necessity dictates. Now this may at
first appear to sharply diverge from the principles of individualistic
anarchism and the doctrine of non-interference. It does not. The answer is not
a pre-determined set of ÒlawsÓ or regulations, but rather an individual or
groupÕs honest and immediate response to the imminent or actual commission of
unequivocally grievous and/or irretrievable offences against an individual or
an area (including, for example, arson, or the ecological destruction of a
people's environment). When such a situation arises (and it would be wise to
provide for some avenue of consultation to guard against ÒChicken LittleÓ
panics), the response should be firm and direct. Benjamin Tucker covers the
case very well: ÒThen liberty always, say the Anarchists. No use of force,
except against the invader; and in those cases where it is difficult to tell
whether the alleged offender is an invader or not, still no use of force except
where the necessity of immediate solution is so imperative that we must use it
to save ourselves [or, as in the case of children, certain weaker individuals
who cannot protect themselves.[viii]] And in
the few cases where we must use it, let us do so frankly and squarely,
acknowledging it as a matter of necessity, without seeking to harmonize our
action with any political ideal or constructing any far-fetched theory of a
State or collectivity having prerogative and rights superior to those of
individuals and aggregations of individuals and exempted from the operation of
the ethical principles which individuals are expected to observe.Ó[ix]
Regulations qua regulation, such as
the State imposes on us, are unacceptable. They are even more so than many
laws, which at least have had the benefit of political discussion and legal
recourse. They are under the arbitrary and usually capricious control of petty
officials (such as social workers, health inspectors and so forth), who can
inevitably find ÒviolationsÓ in any given situation, depending on whether they
take a frivolous dislike to an individual, feel like asserting their scrap of
authority, or had a fight with their spouse that morning. The multifarious nature
of regulatory codes almost insures that any normal situation is unacceptable.
Once a ÒviolationÓ has been established, the whole overbearing power of the
State comes to rest on the unfortunate person or group, where redress or even a
fair hearing is far more difficult than in a straight criminal case. For one
thing, it is quite likely that there is a violation of some code or another.
Whether the specific situation is truly dangerous or wrong, or only
inauspicious, is entirely immaterial; it is the rule not the reality of the
thing which counts.
For example, the truly repressive
building codes not only tie the hands of the adventurous, imaginative, or even
tasteful builder (Òbut it's not up to code!!!Ó), but also have created the
serious low cost housing shortage that has contributed to our current
ÒhomelessÓ problem. Although there are many factors at work, a central one is
the mindless imposition of bourgeois standards of living for all people. As
James Stevens Curl noted in the problems of the Oxford housing situation, ÒThe
very designation of the term ÔslumÕ reflects a middle-class attitude to
terrace-housing where grand values are applied to humble situations.Ó That, and
the shibboleth of ÒsafetyÓ above all other considerations (i.e., better no
house at all than one that sometime, in some way, might be unsafe) have been
instrumental in destroying many of the shifts that poorer people have used over
the centuries to find shelter for themselves. To be subject to such a farrago
of repression for the results that accrue is ridiculous. The game is definitely
not worth the candle. While the social problems that regulation was created to
solve are real, the cure seems worse that the disease, and we must recognize
that all the good intentions in the world can't gainsay this. If liberalism
worked as was intended, I might not be an anarchist. As it is, the only answer
to the question Òshould we regulated?Ó must be Òno.Ó
___________________________________________________________
Bureaucrats vs. the
Saint
Boston Herald Editorial, September 20, 1990
This one will break your heart.
Mother TeresaÕs religious order, the Missionaries of Charity, came
to New York City last fall to do what they do best: save lives. They bought two
empty tenements in South Bronx, and set about rehabilitating them. Some $100,000
was spent on repairing fire damage. Another $400,000 was budgeted for
completing the work on the four-story buildings and turning them into shelters
for 64 people.
Enter the government.
New York City bureaucrats, in their infinite wisdom, mandate accessibility
for the handicapped in all new construction in the city. In this case, that
means elevators—which the nuns consider an unaffordable frill. For those
unable to negotiate a stairway, the nuns proposed instead to do what they so
all over the world: Carry the ill in their arms.
ÒA homeless man probably wouldnÕt have an elevator if he moved
into any other four-story building,Ó Monsignor Henry Mancell of the New York
Archdiocese told the Associated Press. ÒWhy get him accustomed to such a
luxury?Ó
Every nickel the Missionaries of Charity were prepared to spend on
their good works in New York was privately raised—none of the money comes
from government. As far as they are concerned, the $50,000 it would take to
install an elevator is money more vitally needed for other uses.
And so, Mother Teresa—the 80-year-old Nobel peace
laureate—is leaving. ÒAfter praying about it,Ó she said, she decided not
to proceed.
It is safe to say that more people will die on New YorkÕs streets
as a result. But the Almighty Rules were followed. To the government bureaucrat
who speak so piously about Òcompassion,Ó that is a victory.
___________________________________________________________
Deregulating Health Care
Joe Peacott
Introduction
Just as governments and their
supporters feel that they are best suited to decide how and where we should
live, or what recreational drugs we should use, and have passed various laws to
implement their control over these areas of our lives, the state has set itself
up as the guardian of our health and regulates where, how, and from whom we can
receive our health care. Through various laws and their accompanying regulatory
agencies, the government decides what kind of health care can be provided, who
can provide this health care, where these providers may treat their customers,
and where, from whom, and under what conditions we may purchase medicines.
These regulations purportedly exist to protect health care consumers from
receiving incompetent, careless, and/or dangerous care, and to prevent them
from injuring themselves by using medicines without seeking the advice of
experts.
The primary result of state
regulatory control of the practice of health care, however, has not been
protection of the health of health care consumers, but rather the protection of
the market monopoly of state-approved health care professionals, drug
manufacturers, and other providers of health care services. This
government-enforced monopoly results not only in very expensive services and
medicines and the attendant outrageous profits earned by providers and drug
manufacturers, but also in a greatly reduced range of services and medicines
available to health care consumers. Many critics think that the solution to the
problems people encounter with the health care system is for government to
better regulate it and socialize its costs through some sort of national health
care system. I disagree.
I contend, and will argue in this
article, that people would have more accessible, more varied, cheaper, and
better quality health care services and products in a health care market
unregulated by any government. Questioning the right of the state to control
health care, and demanding that we be free to choose how, where, and with whom
we wish to care for our bodies, just as we demand sexual freedom and the
freedom to choose abortion, is a fundamental challenge to the idea that the
state can care for us better than we can care for ourselves. Deregulating
health care, even in the context of state control in other areas of our lives,
would not just benefit our health and increase our freedom in this specific
area. It would also provide a model for non-statist approaches to the solution
of other problems we encounter, perhaps serving as a step on the road towards a
completely non-statist society.
Deregulating
Doctors: the Demise of Professional Licensure
One of the most important ways in
which the government interferes in the health care market is through state
licensing of physicians, nurses, and other health care providers. Despite the
stateÕs and the professionalsÕ claims that licensure is necessary to protect
the public, licensure in fact protects primarily the health care professionals
themselves from competition. Historically, calls for licensure have not come
from health consumers, but from the practitioners to be licensed.
State-mandated licensure ensures a
monopoly in the health care marketplace for those who have managed to convince
the state that they should be the official healers in a given society. Such
licensure laws criminalize the practice of medicine (or nursing or physical
therapy, etc,) by anyone not duly licensed by the state. What constitutes such
practice and the requirements for licensure are defined, of course, by regulatory
boards made up of the licensed professionals in question. By essentially
banning other types of health care providers, and regulating the activities of
those who are licensed, the various health professionals are able to restrict
competition in their fields, thus increasing their status, income, and social
and political power.
Conventional american doctors are
all either allopathic physicians (MDs) or osteopaths (DOs). Allopathic medicine
and osteopathy are not, however, the only models for health care. Such schools
of thought as homeopathy, naturopathy, traditional chinese medicine and
acupuncture, and christian science offer different models for healing and
health care maintenance, and have been and are ascribed to by large numbers of
people both in the united states and around the world. Prior to the advent of
medical licensure laws there were many different philosophies and practitioners
of health care current in this country, but the practice of all of these
ÒalternativeÓ forms of health care has been severely restricted by the
state-supported monopoly of the MDs and DOs, the so-called ÒscientificÓ
practitioners. Licensing laws for nurses, physical therapists, and other
non-physician health care professionals are similarly based on the outlook of
ÒscientificÓ medicine.
The various licensed health
professionals are very attentive to protecting their turf and are happy to call
in the state whenever some upstart challenges their monopoly. For instance, in
Massachusetts, the Board of Registration in Nursing punished a lay midwife who
attended home births by suspending her license to practice nursing (she was
also an RN), preventing her from working as a nurse. This was just part of an
ongoing movement on the part of nurses to replace the currently unregulated
practice of lay midwifery with licensed and restricted nurse-midwifery. As one
might expect, such attempts to restrict the provision of health care are always
justified by a supposed concern for protecting the Òpublic health.Ó
What has been the real effect of
these licensing laws and regulations on health care? First of all, they have
severely limited the variety of health care providers available to those
seeking health care. Although alternative practitioners are allowed to operate
in some places, there are severe restrictions placed on their practice, such
that even merely giving a customer advice can be construed as the illegal
Òpractice of medicineÓ by a non-licensed person. Additionally, insurance
companies, which seek to protect their profits by minimizing the risks they
take and avoiding potential lawsuits, generally follow the recommendations of
the government-approved experts and are unwilling to pay for care that is not
provided by conventional practitioners. Surely, scientific medicine has helped
heal many people, and antibiotics and painkillers have been important
contributions to the well-being of many, but alternative forms of health care
have helped many as well, and people should be free to choose whatever kind of
care they seek.
Besides protecting scientific
providers from the competition of outsiders, licensing laws also allow the
licensed providers to restrict their own numbers. By regulating licensure
requirements, physician-controlled medical boards can restrict the numbers of
medical school graduates by requiring certification of medical schools,
overseen, again, by the licensed physicians themselves. Similarly, medical
boards put very stringent requirements on graduates of foreign medical schools
to further protect themselves from competition. The artificial shortage created
by restrictions on numbers of medical graduates leads to increased demands on
individual practitioners, and allows physicians to charge extraordinarily high
fees for their scarce services. Allowing people to demonstrate competence in
their field, regardless of their educational preparation, and the elimination
of the double standard used to judge foreign medical school grads, while not
solving the other access problems caused by licensing laws, would at least help
in increasing the supply of conventional physicians and lowering the costs of
health care.
Some physicians make the case that
they need to charge such high fees because of the debt they are left with after
medical school. There is certainly some truth to this argument, although,
judging from the lifestyle of most physicians, they clearly make enough money
both to repay their loans and maintain a very comfortable standard of living.
The solution to the problem of expensive education is not to extort the money
to pay for it from either customers or third parties (primarily taxpayers).
Elimination of licensure would eliminate physician-controlled accreditation of
medical schools, leading to more schools, or training programs, or
apprenticeships of all sorts, leading to less expensive health care education
for scientific physicians and alternative practitioners alike.
Critics of elimination of licensure
say that without such state regulation of health care, incompetents and quacks
will take advantage of ignorant consumers. They claim that such oversight
ensures adequate educational preparation, competent practice, and legal
recourse for victims of incompetence and/or fraud, by regulating who can
practice medicine and providing a means to discipline errant physicians.
Licensure, however is not the best (or only) way to try to ensure quality
health providers. Not only do licensed professionals, through their boards of
registration, often protect their colleagues from punishment when they harm
customers, but legal claims against physicians, especially by poorer and less
well-educated people, can often be difficult to pursue and even harder to win
in court.
Better ways to screen health
providers would be those used by consumers in choosing other services in their
lives: word of mouth and private information agencies. Bad doctors, like bad
restaurants would be talked and written about by dissatisfied customers and
would be forced to either improve their services or go out of business.
Additionally, private individuals and businesses would take on the task of
evaluating and rating physicians, not unlike the Consumers Union and their
magazine, Consumer Reports. The PeopleÕs Medical Society already provides
state-by-state physician directories based on the recommendations they receive
from their members. Other services, like Planetree Health Resource Center in
San Francisco, can provide files for health care consumers containing
information on illnesses/health care problems, both from scientific
professional journals and alternative sources, supplying consumers with
information with which to judge the competence and honesty of their physician.
The elimination of state oversight
of health care providers may entail an increase in risk to the person seeking a
health care practitioner. People would no longer be able to rely on government
safeguards, inadequate as they may be, to protect them from incompetent or
dangerous providers. A free market in health care would require consumers to
look out for themselves instead of relying on the state to take care of them.
However, the new uncertainties people would face in such a market, as well as
the increased need for self-responsibility, would be accompanied by an
increased freedom of choice in health care options, a trade-off well worth the
risks, as well as the added time and effort needed to ensure quality health
care in an unregulated setting.
Deregulating
Drugs
The provision of licensure statutes
and regulations that, more than any other, forces so many people to utilize
licensed physicians, is that which limits prescribing of many medicines to MDs
and DOs (and, in a few cases, nurse practitioners and physician assistants).
This inability to obtain medicines without a doctorÕs note prevents people from
medicating themselves and increases the income of physicians by forcing people
to consult them before they can obtain the treatment they wish to use. This
prescription requirement is just one of many restrictions on the manufacture,
sale and use of drugs in the united states. And, in order to really free up
health care in this country, all of these rules and regulations restricting
access to drugs must be abolished.
Similar to the arguments for
professional licensure, the justification for many of these anti-drug laws is
that the state is the appropriate instrument for safeguarding the public
health, and a free market in drugs would expose health care consumers to an
unacceptable level of risk. Therefore, the state, besides requiring physician
oversight of drug use, regulates who can manufacture drugs, how they must be
tested, when they can be released onto the market, and what manufacturers are
allowed to produce which drugs. The result of these laws is that people have a
restricted choice of medicines, which are very expensive, and which they cannot
obtain without a note from their physician, all of which is purportedly in
their interests.
Because of Food and Drug
Administration (FDA) rules, many medicines are not available in this country.
People died because they were unable to obtain pentamidine to prevent
AIDS-related pneumonia, and various other potentially helpful anti-AIDS drugs
have been kept from the market by the FDA, as well. This agency also prevents
people from obtaining THA, a drug proven to be helpful to many people who have
AlzheimerÕs disease and is available in a number of other countries.
Additionally, people who wish to have abortions in the united states are forced
to have surgical abortions, because the FDA bans RU-486, an abortifacient
medicine available in other countries. People in this country are allowed to
suffer and die and are forced to put themselves at risk of surgical
complications because the FDA is Òlooking out for their interests.Ó
Once a drug is allowed onto the
market by the FDA, one drug manufacturer is generally awarded a patent, and
therefore a monopoly in the marketplace. This state-supported monopoly leads to
artificially inflated drug prices, and, therefore, limited access for many
people who cannot afford to pay for the medicine. Again peopleÕs health suffers
because of the FDA.
Drug manufacturers argue that
without patents and market monopolies, they will not be able to do the
expensive research required to develop a drug. Much of the expense of
developing medicines, however, is due to FDA rules. Abolishing the FDA will
greatly diminish the cost of getting drugs onto the market. Drugmakers will
continue to research new drugs because new drugs mean more money, whether there
is a monopoly or not. The fact that a monopoly is not necessary to make money
in the drug business is proven by the large number of generic versions of
medicines which appear on the market as soon as a drug goes off patent, as well
as the very profitable market for non-prescription drugs, few of which are
patented.
Besides medicines, the FDA also
regulates medical Òdevices.Ó Their rules about the use of such devices also
work against individual choice in health care. Their recent call for a
moratorium on silicone breast implants for women bars people seeking such implants
from making the choice about whether they are willing to accept the small risk
of complications in order to have their bodies look the way they would like
them to look. As Margery Eagan wrote in the Boston Herald, ÒA few days ago, I
interviewed Lora Brody, a Newton woman who had silicone implants after a
mastectomy and is ÒthrilledÓ with the results. Who is the government, Brody
asked, to tell her she is incapable of assessing the silicone risk and making
her own choice?Ó Such disrespect for the choices individuals wish to make for
themselves lies at the root of government intervention in health care.
Supporters of government
intervention argue that getting rid of regulation will lead to dangerous and
ineffective drugs and devices flooding the market. They claim that without the
approval process mandated by the FDA, people will have no way to know whether a
medical device or drug is safe and/or effective . While, as I discuss below,
there are non-governmental ways to protect oneself from dangerous or ineffective
drugs, it is true that the elimination of the FDA and the regulations it
enforces, as obstructionist and inadequate as they may be (the FDA has, after
all approved more than its share of potentially dangerous drugs and devices,
e.g., the aforementioned breast implants), may make for a riskier health care
marketplace for the consumer. But, as in the case of eliminating professional
licensure, those of us seeking a freer society are willing to accept this
increased risk, because with it comes the correspondingly broader range of
health care options available in a free market.
The same private activities that
protect people from bad doctors and bad VCRs can protect people from bad drugs.
Considering the response of other people to medicines and consulting
information agencies will work as well in the drug market as in the health
provider market. There are various self-help and mutual aid organizations and
clearing houses in existence today that can provide information on health care
problems and their treatment, and deregulation of drugs and the rest of health
care would only encourage the development of more such organizations. There is
also a newsletter called Pills-a-go-go that provides information on drugs for
consumers. Additionally, socially active private groups, like the CitizenÕs
Commission on Human Rights, which was instrumental in alerting people to the
possible dangers of Prozac, can and will function as watchdogs in the
marketplace.
For Freedom of
Choice in Health Care
Besides the above regulations, the
state also regulates practically every other facet of health care provision,
such as hospitals, clinics, hospices, pharmacies, drug advertising, drug
labeling, etc. Like with drug and licensure laws, these rules serve only to
limit the options of health care consumers and force us to rely on
state-approved practitioners, medicines, and institutions. While many people
accept or support this state of affairs, there have been some hopeful signs of
opposition to the status quo.
In the early 1970's in Chicago,
when abortion was illegal, a group of people called the Jane Collective
provided low-cost, safe, and effective abortions illegally, and therefore
totally outside state control. Their existence was publicized privately and
they provided their services without state-licensed personnel and without
government funding. In addition to the Janes, the women's self-help health
movement, recently revitalized by threats to legal abortion, led to the
foundation of private womenÕs health clinics where people were taught
alternative abortion techniques such as menstrual extraction, as well as
dissemination of information about the use of herbal abortifacients. These are
all examples of how people can take care of their bodies without the
supervision of the government.
The self-help and activist
movements that have developed around AIDS have also taken an anti- and
extra-governmental approach in some areas. Besides forcing important, though
still limited, changes in FDA rules which have led to earlier release of
life-sustaining medicines, the AIDS activists have also set up buyersÕ clubs
which import drugs from countries with looser drug regulations. Many activists
have also challenge the governmentÕs regulation of medical devices by illegally
distributing sterile syringes and needles to injection drug users. People who
have AIDS, as well as other people needing health care, would be much better
served by further efforts in such directions than by the larger governmental
role in health care advocated by many AIDS activists.
Our health care, like every other
area of our lives, should be ours to control, free of government supervision
and intervention. With freedom, however, comes the responsibility to look out
for ourselves, and rely on ourselves and our associates for the information we
need to make the right choices. We may make unwise choices if we donÕt have
government intervention in our lives, but that is the cost of being free. And
it is worth the price.
Bibliography
Anderson, R Roy. ÒTattooing Should be Regulated.Ó Letter to New England
Journal of Medicine, January 16, 1992. Call for even more regulation of
individual conduct by government health authorities.
Andrews, Lori B. Deregulating Doctoring: Do Medical Licensing Laws Meet TodayÕs Health
Care Needs? Emmaus, PA: PeopleÕs Medical Society, 1984. Critique of
physician licensure by the state.Ó
ÒBreast Implants: Caution Appropriate.Ó South End News, February 13, 1991. Calm,
factual discussion of risks of silicone breast implants.
Brink, Susan. ÒPros and Perils of Prozac: Anti-depressant Drug
Stirs Debate.Ó Boston
Herald, March 19, 1991. Discussion of dangerous drug approved by FDA.
Costello, Maureen. ÒHerbal Business Gets FDA Attention.Ó EarthStar,
February/March, 1988. Report on FDA harassment of herbalist.
Dowie, Mark and Carolyn Marshall. The Bendectin Cover-up.Ó Mother Jones,
November ,1980. Illustrates how FDA rules do not keep dangerous drugs off the
market.
Eagan, Margery. ÒImplant Inquiry Sure to Rattle Peignoir-pushers.Ó
Boston Herald,
February 25, 1992. Favors continued availability of silicone breast implants
for cosmetic surgery.
_____. ÒSilicone Controversy Proves You CanÕt Have It Both Ways.Ó Boston Herald,
January 21, 1992. Argues in favor of freedom to choose risky medical devices.
Elze, Diane. ÒUnderground Abortion Remembered.Ó Sojourner,
April & May, 1988. Story of Jane Collective.Ó
FDA Calls for Halt to Underground Sales of DDC.Ó Bay Windows,
February 13, 1992. Report on FDA attempts to stop non-professional sales of
anti-HIV drug.Ó
Female Condom Info Urged.Ó Boston Herald, February 1, 1992. Report on
important ÒmedicalÓ device prohibited by FDA, but available in other countries.
James, John S. ÒClarithromycin: Abbott Seeks Compassionate Access
for MAC.Ó Alert,
April & May, 1991. Report on drug for people who have AIDS whose
availability in the US was blocked by FDA.
_____. ÒThe Future of
AIDS Activism.Ó Bay
Windows, April 2, 1992. Contains discussion of adverse effect of patent
laws on drug research.
Kane, Joe. ÒPlaying Doctor.Ó Mother Jones, April, 1984. Report on Planetree
Health Resource Center.
Knox, Richard A. ÒJudge Reinstates License of Nurse Who is
Midwife.Ó Boston
Globe, September 11, 1984. Report on court decision overturning the
suspension of the RN license of a lay midwife who attended a home birth.
_____. ÒMidwifeÕs RN
License Suspended.Ó Boston Globe, January 29, 1984. Discusses case of lay midwife whose
license to practice nursing was suspended after she attended at a home birth.
Larson, Elizabeth. ÒUnequal Treatments.Ó Reason, April, 1992. Critique of FDA
drug approval policies, with emphasis on unequal treatment of drugs for
different diseases, especially anti-AIDS drugs.
Murphy, Shelley. ÒCourt bans Nurses From Home Births.Ó Boston
Herald, August 16, 1985. More on license suspension of nurse who attended home
birth.
Pills-a-go-go:
Journal of Pills. Information about drugs of all sorts. Available from 1202 East
Pike Street, No 849, Seattle, WA 98122-3934. $10 cash/yr, sample issue $2 cash.
Regaining
Control: Taking Health Care Into Our Own Hands. Cambridge, MA: Boston Area
Anarcha-feminists(?), n.d. Pamphlet encouraging self-reliance instead of
reliance on health professionals, dealing mainly with abortion.
Rothschild, Matthew. ÒDeath by Prescription: How Pfizer and the
FDA Pushed a Lethal Capsule.Ó The Progressive, June, 1986. Illustrates how FDA procedures do not
protect consumers from dangerous drugs.
Sowell, Thomas. ÒBreast Implants: Where Are ÔPro-choiceÕ Forces?Ó Boston Herald,
March 28, 1992. Arguments in favor of a personÕs freedom to choose potentially
dangerous medical devices.
The
Story that TIME CouldnÕt Tell. USA(?): Church of Scientology International, 1991. Report
on dangerous drug, Prozac, approved by FDA.Ó
Transsexuals Protest Silicone Implant Ban.Ó IN, March 3, 1992. Report of
demonstration in favor of keeping silicone breast implants available for
cosmetic surgery.
___________________________________________________________
The Regulatory Mindset at Work:
Rabies and Feline Bureaucratization
Jim Baker
A graphic illustration of
regulatory overkill recently appeared in an article (and supporting editorial)
in the Quincy, MA, Patriot Ledger. The issue is the spread of rabies from wild animals
to house cats, and the Governmental response to the problem. The apparent
situation is that there is an ÒepidemicÓ of various strains of wildlife rabies
that has spread from the Mid-Atlantic region northward since the 1970Õs. The
article stated that this is a periodic rabies outbreak, which occurs in six-year
cycles and affects foxes, raccoons and bats. Such an outbreak, as the article
goes on, might affect Ò2,000 to 5,000Ó animals in Massachusetts, although it is
not clear whether this is an estimate of the total effect on the animal
population, wild and tame, or just the number of observed cases.
The figures from New York show a
dramatic rise in observed cases of rabid animals from 1989 (54) through 1991
(1,030) but only 15 of the 1991 figure were cats. The cited estimate of one
million house cats in Massachusetts would suggest there are at least that
number in New York, of which only 15 were found rabid. This is surely a case
for suggesting that cat owners might want to consider rabies shots, but
certainly nothing more. What it most profoundly does not suggest is the
solution the bureaucrats jumped at—the licensing and forced inoculation
of all cats in the commonwealth! Leave it to the State to find some excuse to
not only make cat ÒownersÓ pay for these shots (at $20 to $35 a pop), but also
to pay for and put up with registration for all cats, with the fees, tags and
sacred paperwork so lusted after by officials of all stripes.
The crowning consideration, also
mentioned in the newspaper article, is that this rabies epidemic carries
essentially no threat to humans. ÒNo human deaths have resulted from rabies in
the outbreak. Except for a 1983 case in which the rabies virus was contracted
in Nigeria, the last human case of rabies in Massachusetts was reported in
1934.Ó Yet the fool Department of Public Health has filed this invasive and
burdensome bill, where simply publicizing the danger to cats and encouraging
their owners to take advantage of inoculations at their veterinarians would
more than suffice.
The article quotes officials that
Òenforcing such a law would be difficult.Ó But this is just what officials
want. A ÒdifficultÓ regulation can be enforced selectively and arbitrarily on
some people for the greatest possible nuisance value, while other cases are
ignored with the excuse for unequal enforcement being the very difficulty that
is built into any absurd and unnecessary law. This is just one of the more
blatant efforts of the State to force us to do something, ostensibly Òfor our
own good,Ó which really just contributes to the oppression by regulation that
is increasing all the time in this country.
___________________________________________________________
Fewer Laws, More Housing
Joe Peacott
Introduction
As Jim Baker notes in his article,
another area where state regulation has harmed those it purportedly was
designed to help is that of housing. From building codes to landmark
commissions to zoning laws to rent control, rules and regulations mandated by
governments from federal to local levels have distorted the housing market,
resulting in a dramatic increase in the numbers of homeless people, wretched
housing for many of the poor who do have somewhere to live, and outrageously
high rents for many who can afford better housing. While many argue that more
and better government oversight and financing of housing is the solution to the
problem of inadequate housing, I intend to show in this article that government
intervention in the housing market has only created more problems for people
who have difficulty finding places to live, and that ridding ourselves of
government interference in our lives is the best way to enable people to solve
the problems of homelessness and lousy housing.
Property Rights
and Homelessness
Over the last ten years the number
of homeless people in the united states has increased greatly, even though the
1990 census estimated that there are 10.3 million vacant housing units across
the country, 500,000 of which are government-owned. At the same time, the
quality of the housing utilized by many poor people who still have places to
stay has been steadily deteriorating, with public housing projects, many of
which are dirty, poorly maintained, and very unsafe, at the bottom of the
barrel. Those who are able to afford decent housing, on the other hand, may
have nice places to live, but are often forced to pay exorbitant rents. What
has led to this problem?
The root cause of housing problems
is absentee ownership of land and buildings. People in this country are allowed
title to land and buildings which they neither occupy nor use, and are allowed
to charge rent to those who should be the owners, the people who do live or
work on or in them. This right of absentee property ownership is protected by
the government, which respects such unjust titles to property, and uses its
police and courts to enforce them by means of trespassing laws. For instance,
tenants who are up-to-date with their rent and are not causing problems to the
property or their neighbors can be evicted from their homes simply because someone
new buys the property and wishes to close it down or change it in such a way
that it is more convenient for this new owner if the current tenants are forced
out. Some people have challenged trespassing laws by squatting or homesteading
unused buildings in cities all over the united states, trying to rehabilitate
them into pleasant living quarters. However, they are usually run out by cops,
often after they have invested a substantial amount of time and energy making
these buildings livable. The buildings are then sealed off and left empty and
unused again. By this means the government protects the interests of absentee
landowners and actively prevents people from housing themselves.
Absentee ownership also frequently
leads to poor quality housing for people of meager economic means who live in
buildings owned by people who live elsewhere. Traditional slumlords, who do not
have to experience the conditions under which their tenants live, or face their
tenants daily, have little motivation to maintain the properties they own above
a minimal standard. The tenants, on the other hand, who have no long-term
economic interest in their living quarters which they are not allowed to own,
are hesitant to take up the slack for the legal owner to whom they pay their rent.
These two factors combine to produce a gradual decay in much absentee-owned
property, leading eventually to abandonment of buildings and the loss of more
housing. And then, as noted above, after the owner abandons a building, the
government prevents homesteaders from rehabbing and living in it.
While eliminating the right to own
property one does not live in or use would lay the basis for a solution to the
housing problems people are experiencing, such a change in property rights will
not occur until many other changes take place, especially the abolition of all
governments, which maintain this and other inequitable economic arrangements.
Given that, we have to come up with ways to improve the situation within the
constraints of a statist society. In looking for solutions, many people,
despite the fact that the stateÕs protection of absentee ownership lays the
basis for all the problems they experience in trying to put a roof over their
heads, continue to turn to the government for help. However, the effect of
state intervention in housing has simply been to make matters worse.
How Building
Codes and Zoning Laws Affect Housing
Among the ways government regulates
housing is by formulating building codes supposedly to protect renters and
buyers from living in unsafe or otherwise inadequate housing. Such rules
dictate what building materials are to be used, how large windows should be,
whether and what kinds of additions can be added to buildings, etc. Despite the
good intentions of such laws, their effect has been to constrict the housing
supply and contribute to homelessness.
Building codes suppress innovation
in housing design and construction and make building and remodeling much more
expensive than they otherwise would be. For instance, at least one building
code has required the use of copper wasteline, and only a certain kind of
copper wasteline, instead of plastic, even though the plastic works as well as
copper and is cheaper to buy and ship. Building codes also restrict
construction that doesnÕt meet the approval of landmarks commissions, which
must approve many building changes, interior and exterior in some
neighborhoods. For instance, in Boston last year, in response to complaints
from neighbors, the Haley House, which serves homeless people, built an
enclosure to block some stairs leading to an alley where homeless people hung
out, much to the dismay of some area residents. However, Haley House was forced
to remove the structure, which not only solved the problem which upset its
neighbors, but also provided additional storage space for the facility, because
they had not obtained a building permit and the local landmarks commission had
not approved it beforehand.
The very process of obtaining the
various approvals and permits necessary to build or renovate housing can also
inhibit construction. In an article in Libertarian Review, Bruce Cooley told the story
of Patrick Hazel of California: ÒAfter buying a lot, Hazel went to the local
authorities to get a permit to construct his own home. There he was told that
he would have to fill out an application, pay various fees, and submit 12
copies of the lot plan, several copies of the deed of trust, and several copies
of the survey map, before he could submit his house plans for approval. ÔI told
him, ÒForget it, Charlie. IÕm not going to submit myself to 12 different
agencies,ÓÕ Hazel says, and he proceeded to build his house without any
permits—whereupon he was slapped with civil and criminal actions by Santa
Clara County. Hazel insists that he is not only meeting but exceeding all
health, safety, and construction standards that are required. All he is doing
is bypassing a lengthy, expensive, and Ôunconstitutional process that is no
ÒprotectionÓ at all.ÕÓ By stifling do-it-yourself homebuilding and renovation,
building codes force people to rely on experienced and expensive contractors,
again raising the costs construction, which, of course leads to less, and more
costly, housing.
One area where building codes have
been most destructive is that of lodging houses or single room occupancy (SRO)
housing. Traditionally, SROs, whatever their drawbacks, have been what has kept
poor people from becoming homeless. In cities across the united states, as
urban ÒrenewalÓ destroyed central city neighborhoods where SROs usually were
located, homelessness increased dramatically. For instance, in Chicago, the
number of SROs declined 80% from 1960 to 1980, contributing to an increase in
the number of homeless people there to 2,722 by 1985. In Boston, another city
with a growing homeless population, the number of lodging houses dropped from
9,500 in 1970 to 2,000 in 1991.
While many housing advocates have
recognized the role SROs can play in remedying homelessness, building codes
place sometimes insurmountable obstacles in the way of people who attempt to
build or renovate buildings to provide SRO dwellings. One developer in Boston
had to spend seven months negotiating with six city agencies to obtain a
lodging house license. As he said at the time, ÒYou would not believe what I
had to go through to get this license. I can smile now, but this process has
cost me a lot of money. An awful lot of money was paid to the City of Boston,
lawyers, consultants and management agents.Ó Not only does this tortuous
process inhibit developments of lodging houses, but the expense involved makes
the housing units that are developed more pricey for the eventual tenants.
Another body of regulations that
similarly restrict construction to the detriment of the housing market are
zoning ordinances. These rules dictate such things as what kind of housing,
i.e., commercial, industrial, or residential, can be constructed where, what
the minimum square footage of land or building is to be allowed per unit, and
how many units are allowed in each building. These laws were intended to
prevent industrial buildings from being built on quiet residential street and
similar situations, but have only served to exacerbate the problems in the
housing market. Like the building codes, zoning laws force up prices and restrict
the supply of housing, especially for poor people, and, additionally, fail to
provide the benefits they claim to provide, since it is often easy for
influential persons to buy zoning variances from officials.
Zoning restrictions make housing in
some areas, such as the suburbs, much more expensive than in other areas, for
example, by requiring large amounts of land around a dwelling. The increased
cost of buying a home caused by this requirement, prevents many people from
moving out of poorer neighborhoods, causing a housing logjam in these areas.
Additionally, restrictions on the number of units that can be constructed in a
specific building prevents building or renovation that could create more
apartments or even SRO dwellings. Such effects of zoning laws contribute to the
growth of homelessness in the cities.
Many argue that without building
codes and zoning laws people would have substandard housing and unpleasant
neighborhoods spoiled by undesirable businesses. However a free market in
housing would provide adequate safeguards against such problems. An unregulated
market would produce more housing, and competition among both builders and
owners would lead to cheaper and better housing. If housing were abundant
enough that one could move out of an unpleasant apartment easily and cheaply,
or choose from many different affordable homes, builders and owners would be
forced to provide better products than they do today. Additionally, consumer
groups or individual entrepreneurs would be able to provide information and
advice to those looking for housing, in order to aid them in choosing the best
deal available.
A free housing market would also
provide a way to deal with some of the problems that zoning laws were intended
to solve. It is unlikely, for instance that a factory would be built on a
residential street, simply because property in such an area would be too
expensive to buy or rent for industrial use. Alternatively, unwelcome
businesses could be persuaded to relocate elsewhere by boycott, protest, or other
non-coercive means, as they sometimes are today. These are just some of the
many ways to solve the problems of housing without resorting to inefficient and
harmful rules and regulations.
The Failure of
Rent Control
One of the most damaging, though
well-intentioned, government interventions in housing has been rent control.
Designed to protect poorer people from rent-gouging property owners, it has
caused some of the most serious housing shortages in the country in cities
where it has been implemented. While people who are concerned about providing
housing for the homeless and improving housing generally have been hesitant to
criticize rent control, it has hurt many more people than it has helped.
Rent control makes owning rental
property much less profitable. As a result, owners are much more likely to
abandon property, allow it to deteriorate, or even burn it down for insurance.
Additionally, builders are hesitant to build new units in rent-controlled
cities because the return on their investment is lower than they would like.
The result is a shortage of both new and established housing units.
Tenants who are lucky enough to
have rent-controlled apartments are very hesitant to leave. This lack of
movement among a large segment of the renting population (in New York City, as
large as 30-40%) exacerbates the existing housing shortage, driving up rents in
the remaining ÒmarketÓ apartments to prices well above market rates. Rent
control in New York has led to a vacancy rate of 2%, with most apartments
outrageously overpriced. This is a perfect setup for homelessness among poor
people.
Besides increasing the number of
homeless people, rent control often benefits the people least in need. Many
wealthy New Yorkers live in rent controlled apartments, one person paying (in
1988) $1,250 a month for a ten room apartment overlooking Central Park. In
Cambridge, MA, where rent control has done much less damage, there are posters
on lampposts offering cash rewards for rent-controlled apartments. Why, if
someone can afford to pay a reward for a cheap apartment, canÕt they afford to
pay for an uncontrolled apartment? Obviously they could, and by taking a
rent-controlled apartment, they deny it to someone less able to pay for
housing. People who are homeless or stuck in undesirable housing are often
unable to get new housing simply because they are unable to get together a
large enough lump sum to cover first and last monthsÕ rent and a security
deposit. Such people obviously would be unable to afford the additional cost of
offering a reward for a cheap apartment, and are therefore unable to compete
for apartments with those who can. This competition effectively keeps
rent-controlled apartments out of the hands of poorer people, precisely the
people rent control was intended to help.
While doing away with rent control
would cause sudden increases in what some renters pay, if accompanied by
deregulation in other areas of the housing market, it would soon normalize the
housing market. Those who have been unwilling to leave rent-controlled
apartments will move on once they donÕt have as good a deal as they once did,
more housing will be built, and abandoned housing may be rehabbed. This will
create more housing units, which, in turn, will drive housing costs back down
again. While the former dwellers in rent-controlled units will now pay more
(which many, if not most, of them can easily afford) most people will end up
paying less for rent. And lower rents and more housing mean less homelessness.
Conclusion
In housing, as in all other areas,
government intervention in peopleÕs lives causes more problems than it solves.
Its building codes and zoning ordinances exacerbate the housing shortage, and
even some government officials can see the that regulations can be destructive
of efforts to provide more housing. For instance, Constance Curry of the
CitizenÕs and Community Affairs Department of Atlanta, while acknowledging that
the makeshift huts provided to homeless people by the Mad Housers, a voluntary
group, were not Òup-to-code,Ó stated that, ÒThere is no official position on
the Mad Housers. But theyÕre better than a kudzu patch or freezing on the
street. Unofficially, weÕre glad theyÕre using that sort of ingenious
approach.Ó If the bureaucrats themselves can (unofficially) see that
non-governmental methods can help solve the problems of housing and
homelessness, why canÕt those outside the government?
Rent control hasn't worked.
Government-funded housing projects havenÕt worked. Government housing subsidies
like Section Eight donÕt work. It is time to look for other ways to solve the
problems people encounter in their search for housing. Getting government out
of the housing business, with all of its rules, regulations, subsidies, and
programs would result in a free market which could provide housing to people of
all economic levels. While directly providing housing for the poor helps
prevent and relieve homelessness, building housing for the wealthy opens up
units for the less wealthy, which opens up units for the middle class, which
opens up units for the lower middle class, and so on, down through the economic
strata, eventually providing even more housing for those currently homeless.
Freeing up the market will
obviously not solve all of our problems, but even in our current statist
society, there are a number of voluntary organizations which help people deal
with their housing problems. From the Mad Housers in Atlanta, to the housing
trust negotiated with the hotel owners of Boston by Local 26, which provides
funds for housing construction and rent subsidies to union members, to the
various squatter groups throughout the country, people are acting for
themselves, providing housing for themselves and others, without relying on the
state. Such initiatives are important, not only because they help people live
better here and now, but because they also serve as a guide to how we might
provide for ourselves and our neighbors in a future anarchist society.
Bibliography
Bates, Lincoln S. ÒMad Housers Help Homeless.Ó The Progressive,
May, 1989. Story of the Mad Housers in Atlanta.
Bovee, Tim. Ò1 of 10 U.S. homes was vacant in 1990.Ó The PartyÕs Over,
May, 1991. Statistics on vacant housing units.
Cooley, Bruce. ÒThe Shortage in Housing: The Crisis that Government
Built.Ó The
Libertarian Review, August, 1981. Critique of government intervention in
housing market.
Dreier, Peter. ÒLook for the Union Label.Ó The Progressive, April, 1989. Discussion
of the housing trust fund negotiated by Local 26 of the Hotel Workers Union.
Fearnley, Elizabeth. ÒLetÕs Start From the Beginning: Soup Kitchen
to Seek Permit to Rebuild Structure Torn Down Last Week.Ó South End News, August 1, 1991. Story of
Haley HouseÕs run-in with housing authorities.
Husock, Howard. ÒThe Roots of Homelessness.Ó Critical Review, Fall, 1990. Includes
discussion of government role in destruction of SRO housing.
Ideal
Home: Survival Edition. London (?): Suspect/Hooligan Press, n.d. Tips on squatting and
other unconventional housing arrangements by group of anarchists.
Karen and Cyrehl. ÒSquatting.Ó Reprinted in Loompanics Unlimited
catalog from Life
is Free, Òthe Anarcho-SquattersÕ newsrag,Ó date unknown.
Mahoney, Othello. ÒAre Lodging Houses an Answer to Low-income
RentersÕ Woes? One LandlordÕs Story.Ó Dorchester Community News, August 30, 1991.
Discussion of obstacles placed in the way of SRO development by regulatory
agencies.
Roberts, Jo. ÒBronx Homesteaders Evicted.Ó The Catholic Worker, March-April, 1991.
Story of police action against squatters.Ó
State Sues Upscale NY Town for Barring AIDS Housing.Ó Bay Windows,
April 30, 1992. Report on use of zoning laws to obstruct creation of housing
for people who have AIDS.Ó
ÒTenants as Scapegoats.Ó Boston Herald, February 15, 1992. Unsigned
editorial objecting to eviction of tenants when their homes are foreclosed on
because of failure of the buildingÕs ÒownerÓ to make mortgage payments.
Tranquility and Atu Darden. ÒSquatting.Ó Spew 2, n.d. Statistics on
government-owned vacant homes. Published by War Resisters League.
Tucker, William S. ÒRent Control.Ó Letter to The Progressive, July, 1989. Response to
article in defense of rent control which included criticism of him in the
April, 1989, issue of The Progressive.
_____. ÒThen ThereÕs Rent Control.Ó The New Republic, April 11, 1988.
Critique of rent control.
Ward, Colin. Housing: An Anarchist Approach. London: Freedom Press, 1983.
___________________________________________________________
Section 8 Program:
Crazy Rules
Art Kalotkin (Letter
to Boston Herald, August 30, 1991)
ÉThe housing subsidy program created by the government is the
fantasy of the middle class on low-income people and has done little to foster
self-assurance and economic independence among them. The costs of the program
are inflated by its many rules and regulations.
The rules of the Section 8 program say that every child of a
different sex must have a separate bedroom and the living room cannot be used
for sleeping. Thus, a person with one child must rent a two-bedroom; one with a
boy and a girl, a three-bedroom. When I was a child, my parents rented a
one-bedroom apartment, and my sister and I slept in the bedroom; my parents
used a sofa bed in the living room!
A typical Section 8 apartment gets four inspections yearly to
qualify for continuation in the program: Health Department or Code Enforcement
(Certificate of Fitness), Building Department, Lead Paint Certificate, and the
Housing Authority inspector. Of Course, each inspector finds something entirely
different wrong with the apartment.
É[T]he time it takes to follow the rules can cost the equivalent
of one monthÕs rent per year.É
[i] Havel, Hippolyte. What is Anarchism? Chicago: The International Anarchist Relation Committee of America, 1932, p. 11.
[ii] Kohlmeier, Louis M. The Regulators. New York: Harper & Row, 1969, p. 8.
[iii] McCraw, Thomas K. Prophets of Regulation. Cambridge: Harvard University Press, 1984, p. 301.
[iv] Certainly, even the most orthodox anarchist individuals betray weakness and inconsistency (if not outright hypocrisy) today — and they are the socially conscious minority. If everyone lived in an anarchist society by chance of birth rather than choice, it would be as inevitable that some would backslide from the ideal as it was with the Half-way Covenant crisis in second-generation Puritan New England.
[v] Dolgoff, Sam, ed. Bakunin on Anarchism. Montreal: Black Rose Books, 1980, p. 229.
[vi] Kropotkin, Petr. Mutual Aid: A Factor of Evolution. Boston: Porter Sargent Publishers, n.d, p. 131.
[vii] This conclusion is well supported by Kohlmeier, cited above (although he personally favors reform).
[viii] Tucker, Benjamin. Instead of a Book. New York: Haskell House Publishers, 1969, p. 145-6.
[ix] Ibid., p. 35-36.