Category Archives: Financial

REVIEW | Freakonomics

REVIEW | Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt and Stephen J Dubner
by Dr. Mark David Major, AICP, CNU-A, The Outlaw Urbanist contributor

I really liked Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt and Stephen J Dubner; not so much for the answers it provides – some are compelling, others are extremely dubious – but for its effective demonstration via economist Stephen J Dubner’s methodology that the question asked (especially of statistical analysis) is often just as important – if not more so – than the answers uncovered. Dubner willingness to ask questions ‘outside of the box’ should be applauded and encouraged; as I do every day with my students. The analysis of house sales transactions of realtors is especially compelling and confirms what many savvy people would have already suspected about real estate agents. In the grand scheme of things, does it really make that big of a difference? No, not really. However, as Levitt and Dubner argue, it shines a light on the more dubious practices of some professionals who would like to publicly offer a false facade of objectivity.

The real selling point of Freakonomics – the link between drops in crime during the 1990s and the legalization of abortion in the USA with the 1972 Roe v. Wade decision – is much more dubious. As Levitt and Dubner seem willing to concede, it is a syllogism (deductive reasoning as distinct from induction, which does not necessarily follow, i.e., All men have brains. All humans have brains. Therefore, all humans are men.). I simply do not believe it. As I recall, Western European societies also experienced a crime drop during the 1990s and Dubner does not seem to control for population in his analysis outside of the United States. Maybe he does in one of the cited academic papers but I do not find the argument compelling enough to bother searching for the source material. More than this, there is ample evidence (Dubner himself cites some of it in arguing in his analysis that the hiring of more police does lead to less crime) that a zero tolerance policing policy does work. For example, many Middle Eastern societies have no abortion, a high birthrate (relative to the USA), zero tolerance policing (so much so that some might argue they are police states), and extremely low, almost non-existent crime. We do not even have to cite the historical precedent of low crime in early 20th century fascist police states in Germany and Italy to make the argument. Of course, the problem then becomes how does one define crime in the problem definition. In this, Dubner’s research seems to suffer from that particular and peculiar problem of American academia that nothing else exists outside of the borders of the United States. It is true that Levitt and Dubner are not making a moral argument but it is a very small, troubling step from their conclusion to state-mandated sterilization of poorer populations to control future crime. Of course, this is problematic in moral and ethical terms, especially since the counter-argument on the same terms is all-too-easy: how many would-be Mozarts, Einsteins, Steve Jobs, and Princes were aborted after 1972? Surely, the world is a lesser place than it would be otherwise? No doubt, Dubner would say it is statistically-insignificant but that is the very nature of such individuals: they are rare. However, in the end, there is no way to know for certain. It is only speculation.

Levitt’s nerd-rock star treatment of Dubner in the book is also a little off-putting, especially for an academic. I suspect Dubner is probably uncomfortable about it as well though it has made him a lot of money. However, do not allow these issues to become a deterrent. Freakonomics is a good and fun read, which is definitely worth your time.

Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt and Stephen J Dubner
Paperback
English, 315 pages
William Morrow Paperbacks (2009)
ISBN-10: 0060731338
ISBN-13: 978-0060731335

You can purchase Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt and Stephen J Dubner here.

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Planning Naked | May 2017

Planning Naked | May 2017
by Dr. Mark David Major, AICP, CNU-A

Your (hopefully hilarious) guide to most everything about the latest issue of APA’s Planning Magazine. It is a tale of two issues for May 2017. “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness…” Strange, that seems familiar.

“Oops, did I say too much? Something to think about…” James M. Drinan, JD seems to reveal way more about the professional organization’s underlying, flawed assumptions than he probably intended for the From the Desk of APA’s Chief Executive Officer article (pp. 5) of this issue. In fact, it is all there in the title, “How Do We Shape the New Normal?” Think about that for a moment. APA’s goal is not any sort of objective knowledge or the scientific truth about cities, which would have universal application regardless of whichever political party held power. Instead, by virtue of what is left unsaid, it represents something that is subjective, open to change and manipulation for the circumstances. It is an agenda that has to be ‘shaped’ to the political philosophy of the party in power; albeit, apparently only at the Federal level. This confirms APA is not a ‘neutral’ entity but a partisan one (big surprise, right). Other professional organizations have been supplanted by competitors for similar reasons in the past. Did I say too much?

Planners who forget to, you know, plan ahead. “Lessons Learned from the Oroville Spillway” (pp. 11-12 in the News Section) tries to turn lemons into lemonade. Short summary: some planners and engineers forgot to plan ahead and anticipate alternative scenarios associated with the damn and its spillway, which, if anything, shows a lack of imagination. It appears to be an example of government planning at its finest. Yes, that last comment is sarcastic.

Where’s all of the affordable housing? “Shipping-Container Homes Pose Zoning Challenges for Municipalities” (pp. 12 in the News Section) demonstrates why affordable housing is a nationwide problem as local governments impose regulatory controls on (potentially affordable) alternative housing solutions in order to artificially inflate local property values (tax revenues and sales profits in real estate for fun). Here is a little mental exercise: remove the issue of zoning out of the equation and the name of this article becomes only “Shipping-Container Homes for Municipalities.” That sounds promising…

Wait, Bourbon Street isn’t car-free already? Which was my biggest shock about the “New Orleans Ponders a Car-Free Bourbon Street” (pp. 13 in the News Section) article. Nice of APA to advertise just how far behind the United States really is when it comes to catering for pedestrians. People say cynicism is not a solution but it is hard to read a news item like this one without becoming a cynic.

Our devious plan to regulate Airbnb and its like out of existence. Here is the not-so-secret plan of APA, government regulators, and real estate industry members – representing the ‘suburban model’ perpetuation of the status quo over the last 70 years – in “Regulating Short-Term Rentals” by Edward Sullivan (Legal Lessons on pp. 14). Resist! The longer Airbnb and other share services prevail (even to the point of permanency), then the more hope there is for the future of our cities. Fight the power! Be a short-term rental outlaw! That statement is probably enough for me to be charged with inciting illegal activities in some jurisdictions.

A breath of fresh air. Finally, some solid reporting and writing in the three feature articles, “Immersive Technologies” by Emily Schlickman and Anya Domlesky (pp. 16-21), “Mapping for the Masses” by Jonathan Lerner (pp. 22-27), and “Dark Skies, Bright Future” by Allen Best (pp. 28-33). All of these articles (generalizing here) discuss the potential of their particular subject, their strengths and weaknesses, and even the possible shortcomings in the future. In 15 years as a member of APA, these three articles represent one of the best sequences in Planning Magazine during that time. 18 pages of pure bliss; more like this, please.

Then, we come to the low point for the May 2017 issue of Planning Magazine: National Planning Awards. News Flash APA! I strongly believe Daniel Burnham and Pierre L’Enfant would be deeply embarrassed to have their names associated with APA’s National Planning Awards in general and with these ‘winners’ in particular. Let’s skip over the irony that Burnham was an architect and L’Enfant was an engineer. I mean, what is APA going to do; name an award after Robert Moses. How embarrassing would that be? Moses sucked and everyone knows it now. Also, have you noticed APA does not (apparently) have a national planning award named after Jane Jacobs. APA’s Standing Committee for the Refutation of Jane Jacobs (see below) must be still hard at work.

Anyway, I do not want to spend too much time on these so-called awards. Judging by the full-page insert on pp. 48-49 practically begging for more entrants as well as the low quality of recent winners, it seems relatively clear that APA’s National Planning Awards are experiencing some problems staying afloat just like APA’s Planners Press. Or wait, should I have not said something about the failure and announced closure of Planners Press? Next time, maybe publish better books (just a suggestion).

Have you ever noticed when APA is embarrassed, Planning Magazine does not show any plans or satellite views of particular projects? I mean, it is almost like they do not want you to know that they are writing hosannas and/or handing out awards for suburban sprawl. Let us take one example, the 2017 National Planning Excellence Award for a Planning Landmark winner: Montgomery County, Maryland. Where is Montgomery County, you ask? It is to the immediate north/west of Washington, D.C. and to the near-immediate south/west of Baltimore, Maryland. Looks like an obvious location for high-density, urbanized in-fill between two growing metropolitan regions. You know, planning and design with foresight.

Google Maps view of Montgomery County, Maryland showing its intermediate, suburban location between Washington, D.C. to the south and Baltimore to the north. (Source: Google Maps).
Satellite view of Montgomery County, Maryland from 15 km (Source: Google Earth).

But wait, what is this? Gee, that looks like extensive physical evidence of suburban sprawl development patterns. The configuration of the ‘protected’ agricultural land is conversely that of the direction of the development patterns for Washington, D.C. from the southeast (the nearest urban center) to the northwest. Wait, it is possible this is part of a green belt for Washington, D.C.? Strange, I don’t recall the project description mentioning that information. Didn’t the Centre for Transport Studies at University College London demonstrate in the late 1990s that the effect of green belts was to increase auto-commuting travel miles, levels of carbon emissions, and suburban sprawl patterns (see The London Society’s refutation of green sprawl here). That is embarrassing. Not only is APA over two decades behind on this issue but they are actually still giving out awards for flawed policies perpetuating suburban sprawl.

But that’s OK. By implementing policies such as transfer of development rights (TDR) to protect agricultural lands, maybe Montgomery County dramatically increased density in its buildable areas. What is the average population density in Montgomery County, Maryland today? 3.2 people per acre. Mm, average population density for New York City (the ‘unicorn’ of American planning, I think it is far to say) is 43.8 people per acre. New York Ctiy is neary 14 times denser than Montgomery County, Maryland.

To paraphrase Britney Spears: oops, they did it again.

Planning Naked is an article with observations and comments about a recent issue of Planning: The Magazine of the American Planning Association.

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Planning Naked | April 2017

Planning Naked | April 2017
Special Issue on Transportation
by Dr. Mark David Major, AICP, CNU-A

The previous issue of Planning Magazine (March 2017) gave me an excruciating, migraine headache and I definitely lost my temper while writing Planning Naked. I watched about one year’s worth of slow but steady progress in the editorial/word choices of the American Planning Association go out the window in a hysterical, reactionary response to the election of President Donald Trump; assuming these Planning Magazine articles are queued out a couple of months in advance. The fault is not Trump’s but the ‘establishment’ using any excuse (however, flimsy) to assert the dominant planning paradigm of the status quo for the last 70 years, which can be simply summarized as ‘Cars, Money, and Bureaucracy.’ I don’t have much hope for this April 2017 Special Issue on Transportation doing much to alleviate my professional concerns since the special issue on this very topic two years ago was an unmitigated disaster; especially the cover of vehicular road signs, which still irritates me. Let us see what this issue has in store for us…

A car is still a car. On the cover is the “front of a Waymo driverless car at a Google event last December in San Francisco (see pp. 5). So yeah, ‘transportation is cars’ is once again the front and center visual for APA’s Planning Magazine special issue on transportation. I can hear their objections to this observation, “But, but, but, but we have articles about bike-sharing and mention pedestrians and walking and rail and nature.” Yes, you do but the graphics and digging into the substance of the content only illustrates how APA ‘talks the talk’, ‘drives the drive’, and even ‘drives the talk’ but refuses to ever ‘walk the talk’ when the rubber meets the road. OK, there are a LOT of mixed metaphors about lip service in there but you know what I mean.

Ditch the word transportation. Maybe Planning Magazine could start with something simple like changing the title of this annual issue to “Special Issue on Mobility” or “…on Movement”? Just a thought…

Oh, chase the shiny object. “The Road Less Traveled” by James M. Drinan, JD (From the Desk of APA’s Executive Officer, pp. 7) sets the tone for APA as a professional organization chasing the ‘next shiny object’ that just so happens to pass across its field of vision. The advertisement photographs of planners playing in the exhibit’s area of national planning conference (prior on pp. 2-3) only reinforces the idea: Computers! Pinball machines! Free promotional pamphlets! Up, close, and personal with a drone! Virtual reality! Projector graphics and ice cream scoops?!? (Not sure about that last one) In any case, for this issue, it means new “disruptive transportation technologies” and “calls for infrastructure investment” (translation: there is “bipartisan support” to give us money), which can be linked to “economic development principles (jobs!).” Ahem, how about better understanding the road most travel by most people first? All of the evidence suggests APA is still clueless about that.

Cars, money, and bureaucracy. All-inclusive including the inside/outside of the front and back covers, this issue is 56 pages long. About 65% is really about cars, money, and protecting/promoting the bureaucracy/regulatory regime of planners. The issue pays lip service to other issues but…

Good News! You can be an Outlaw, too. The “New Hampshire Greenlights Granny Flats Statewide” article by Madeline Bodin (News Section, pp. 13) is great news! However, it is extremely disturbing that “the New Hampshire planning community was mixed on [the law].” Of course, the planners and municipalities initially opposing the law introduced a condition requiring that granny flats be ‘owner-occupied’, which is an insidious attempt to limit affordable, rental housing for lower income and young people. The Outlaw Urbanist would like to encourage all New Hampshire homeowners to violate this law immediately and continually since the ‘owner-occupied’ provision is essentially unenforceable. We are all outlaws now! “Lord I never drew first, But I drew first blood, I’m no one’s son, Call me young gun…”

So that happened… The “Zoning and ADA Compliance” article by Robin Paul Malloy (Legal Lessons on pp. 14) is an inoffensive reminder for people who might fall short in common sense, basic decency, and good manners.

I’ll pass, thanks. “Here Come the Robot Cars” by Tim Chapin, Lindsay Stevens, and Jeremy Crute (pp. 15-21). Full disclosure: I have known Lindsay Stevens since 2003. She is a friend. I have also met Tim Chapin, who invited me to guest lecture at Florida State University in Fall 2008. I don’t know Jeremy Crute. Out of respect for Lindsay, I am not going to comment on this article about autonomous vehicles (i.e. driverless vehicles) based on a study conducted on behalf of the Florida Department of Transportation.

I love the smell of sarcasm in the morning. Q&A section about “Disruption: Bike-Share” (pp. 24-25) in which Planning Magazine’s Editor-in-Chief, Meghan Stromberg interviews Jon Terbush of Zagster, a venture-funded startup company based in Cambridge, Massachusetts that designs, builds, and operates bike-sharing programs. I absolutely LOVE Terbush’s response to Stromberg’s question, “What are the minimum requirements for bike share?” Terbush responds, “Well, I’d still say the vision is the most important thing.” You can feel Terbush’s sarcasm dripping off the page after receiving such a backward ‘trapped-in-the-box’ type of question. Well done, Mr. Terbush. You smacked down APA and Planning Magazine even if they seemed blissfully unaware of it.

You can do those things that are ‘generic’ to all cities. The Q&A section “Disruption: Ride Share” (pp. 26-27) is a straightforward discussion about profiteering on the share services associated with the automobile… as if ‘unlicensed taxi services’ haven’t been around for decades (such as in London). That is essentially what companies such as Uber and Lyft are, i.e. they are circumventing government regulations (nay, restrictions) on labor in the same way zoning out granny flats restricts affordable housing and owners’ ability to profit on their property without the blessings of government. In any case, Andrew Salzberg’s closing comment is great advice, namely to “focus on things that are eternally true.” Well said, sir.

Oh, parking, you’re so fine, parking’s so fine, it blows my mind! Oh, parking! Ahem, four pages about parking with all sorts of buzzwords designed to promulgate the status quo. “Parking is an asset for cities,” “It plays a vital role (in making money, I translated the ‘code’ for you here but the “Driven by Technology” insert makes it clear),” it is “an important planning resource,” and so on and so forth. I was especially amazed to read how parking is “helping to reduce roadway congestion.” Along the way, the editors implicitly promote the decades-long myth of every Main Street shop owner, namely ‘Main Street would survive if we only had more parking.’ Planning Magazine does not say that, of course, but instead tells us people “will avoid public parking” if you charge too much for it. They do not mean people might walk or use a bike. The little 1” x 3.5” insert for The High Cost of Free Parking by Donald Shoup within the context of this article is quaint. See: equal time (<sarcasm).

Insidiously lies the crown. At first glance, “Connecting the Dots” by Greg Griffin (pp. 32-39) seems like it is promoting the bike share concept. However, by tying bike sharing to inequity issues it is actually undercutting it. This is ironic considering the equity and standard of living impacts of not owning a car are much, much worse and pervasive in American society. This article is insidious because the key underlying issue is American settlements have been building large rectangular blocks, expanded road widths, and consuming land for centuries, which the automobile has only accentuated over the last century or so. It is the spread-out physical nature of the American settlement itself, which generates many of these inequity issues. However, by ignoring the real issue (planning and land consumption), Planning Magazine can use the inequity issue to undercut the bike share concept. Not overtly, you understand, but by throwing up ‘cautionary’ impediments along the way in the regulatory regime.

See: APA mentioned rail. Planning Magazine pauses in “Rail Relationship” by Raymond Besho (pp. 40-42) to remind us that freight rail traffic is worth a lot of money, too. They then prescribe solutions to promote rail freight at the expense of livability for human beings in settlements; all in the name of “safety.” Trains killed 265 people in 2016 (Source: Federal Railroad Administration). Wow, it is an epidemic! Automobiles kill more than 30,000 people each year. Perspective, people.

In closing. I want to close out this version of Planning Naked by repeating the opening line of the “Cultivating Stronger Connections with the Natural World” article by Timothy Beatley (pp. 49-50):

“Too often nature seems abstract and far away, difficult to know and touch in any visceral way.”

I would like you to think about that statement. I mean, I want you to think really hard about the opening line of this article in a national magazine of a national organization dedicated to the ‘art and science of designing cities.’ I hope you do not laugh too hard when you realize the statement is patently absurd.

At least, this time I kept my temper and I did not get a headache. This represents progress of a certain kind, I suppose.

Planning Naked is an article with observations and comments about a recent issue of Planning: The Magazine of the American Planning Association.

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Support The Outlaw Urbanist Today!

Now Accepting Contributions from Fellow Resistance Fighters
by Dr. Mark David Major, AICP, CNU-A, The Outlaw Urbanist Founder

We founded The Outlaw Urbanist almost five years ago. During that time, we have produced more than 220 posts of freely-available content on the blog about architecture and urbanism across a vast range of issues as well as nearly 4,000 tweets on the @OutlawUrbanist Twitter feed.

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NOW AVAILABLE | Housing and Modern Corporatism

Housing and Modern Corporatism: Inside the Doomsday Machine explains basic economic principles and tools at work in the housing market during the post-war period in the United States with an emphasis on the cumulative origins and causes of the 2008 financial crisis. The course covers the role of: purposefully opaque, financial instruments; mistakes in political and regulatory policy; naked, greedy (even fraudulent and/or corrupt) self-interest in the marketplace; and the unspoken, self-deluding assumptions underlying the housing and real estate market, which collectively sparked the Great Recession from 2008 until ‘to be determined’. The course is tailored for architecture, urban design and planning professionals, students, and others engaged in creating built environments to better understand the impact of these often unseen, poorly understood forces at work on their livelihood and the future of our cities (2.0 hour course).

Key concepts: capitalization, credit, money, housing, mortgage bonds, reserve currency, securitization, value.

Instructor: Dr. Mark David Major, AICP, CNU-A

Check here to purchase this course ($14.99), which includes an one-hour video presentation and PDFs of the course supplementary materials and slide handout.

Note: We are beta-testing with these initial course offerings so if you have any issues accessing the course material, please do not hesitate to contact us at [email protected]. Thank you!

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