NOLA: Central Planning or Organic Growth? In New York City, Developers Talk about "Market Forces," but They Benefit from Central Planning
Should the government plan the reconstruction of New Orleans, or should the city rebuild organically? In response to the comments of Professor Bainbridge on a piece by William Greider in the Nation on the rebuilding of New Orleans, I wrote the following. Bainbridge opposed the sort of central planning that Greider proposed, stating that a bit of gentle zoning was all private enterprise needed to give shape to the redevelopment of the city. Here is what I said:
You raise important considerations. I think, however, that in fact you and Greider agree about outcomes. Neither one of you wants to let Disney get ahold of New Orleans and turn it into another deadly corporate theme park like Times Square in New York City.
You do differ in terminology, however. Today the wolves, unfortunately, clothe their pronouncements in the sheeps' vocabulary. Today corporations talking about "market forces" are in fact beneficiaries of powerful central planning. Through the same administrative devices that Robert Moses used to shield government action from political accountability, private developers today get to use all the powers of central planning, including eminent domain. Knowing that they must use the right vocabulary, however, they call it "market forces." Developers like Forest City Ratner justify gigantic, centrally-planned projects
like Ratner's proposed Nets arena-condos-office towers in Brooklyn, New York, by talking about "market forces," the term you use favorably in its old signification. In fact, however, the New York City government is behind Ratner's plan, and the West Side stadium plan, and the plan for a gigantic shopping mall in the Bronx. One could go on. There is no market demand for a Nets arena or a cluster of office towers in Brooklyn, or for any of the rest. It is all central planning.
Even where the issue is a change of zoning, as in the recent change to the zoning of the Williamsburg and Greenpoint working-class neighborhoods of Brooklyn, zoning is no longer a neutral tool, as it perhaps used to be, and as you wish it to be. Zoning, too, is central planning at work. Developers of condos and shopping malls will benefit from the zoning changes in Greenpoint and Williamsburg. The variety and vitality of the city will be diminished. Small manufacturers and the working-class people who have built a vibrant neighborhood will be forced to leave. See for example the letter of Jane Jacobs to Mayor Bloomberg and the City Council regarding the re-zoning of Williamsburg and Greenpoint. http://www.brooklynrail.org/local/april05/jacobs.html.
We cannot use the terms "central planning" and "market forces" and be confident any longer that we are all talking about the same things. The language has been corrupted. I think, therefore, that it is time to talk in all simplicity about what outcomes we want for New Orleans. We want a vigorous city. Let's talk about the economy. Let's ask what infrastructure the city needs. The tourist-arts culture, as Kotkin and Friedman argue correctly, does not alone support a city. Let's ask what the people want. Let's talk about how to find private investment from numerous sources of all sizes. Maybe the New Deal has something to teach us, after all. Maybe not.
However we describe our theories, whatever terms we use, we do agree that we do not want another Disneyfied corporate theme park like Times Square, and we do want a living New Orleans.
MCG
