“Many” is the operative word there. It’s not all–not by a manure-covered mile. If you ever want to do a deep dive down a fun legislative rabbit-hole, dig into right-to-farm law, agricultural zoning, and the history of nuisance litigation. I might not be able to put a hog farm next to a tenement building downtown in a major metropolitan (or I might be surprised to find that, in fact, I can, if I’m willing to pony up for the land), but there are plenty of places where I could.
In any event, the example is ultimately hypothetical. The point is that trying to exterminate landlords can have disastrous knock-on effects, foreseen or otherwise.
Rant warning (that’s the end of the response; the rest is just venting about inequality).
It’s no accident that the American Dream is about owning land. Land ownership is central to our national identity, born as we are out of generations of homesteaders, tenant-farmers, explorers, slaves, and frontiersmen who rightly made no distinction between the tyranny of the plantation and that of the feudal lord (and that of the modern slumlord). Everyone wants land, and who can blame them? For a hundred-thousand years, owning land has been the best, most reliable route to prosperity and, ultimately, generational wealth.
The problem isn’t that landlords exist. It’s that landlords are rich. And notably, it’s absolutely not all of them. I don’t really have any beef with a professional who does well, retires, and buys a little summer house he rents out to vacationers eight months out of the year. The fact that it’s a profitable undertaking doesn’t really unravel the social fabric, since the profit motive is the only reason vacation homes exist for people (like me) who want them and have yet to save up enough to buy one outright.
Ultimately the problem is, as always, wealth disparity. A vacation home isn’t a big deal. A monopoly on an entire vacation community, however, is a different matter, because with it comes price fixing, capture of the local government, corruption, abuse, and all the worst consequences of gentrification–you know, capitalism. And again, it’s a problem you solve by taxing hoards of wealth, whether they’re in any individual’s pocket or hidden in a corporate offshore vault or securities labyrinth. It’s a problem we already solved a generation or two ago: Accumulate more wealth, pay more taxes, and continue to pay progressively more taxes until the profit motive is completely overshadowed by the societal benefit (via tax) of the new wealth generated. If you own a building in midtown Manhattan, you should get to pocket only the tiniest fraction of the rents it brings in. Not profitable enough? Then sell it. Plenty of the rest of us will stand in line to take it off your hands. Your corporation that hoovers up neighborhoods all over the country is suddenly in the red because a society-serving tax regime punishes you for said hoovering? Guess you better sell off some homes and watch the market correct itself.
All of that is to say that landlords serve an important function in an ordered society–providing the temporary use of otherwise unused land to persons who have not yet accumulated enough wealth to own their own land outright. We should not aspire to do away with that function, but rather simply to tax rent-seeking at a level that serves the society at large. It should be profitable to own a vacation home. It should never be profitable to own six.
I’d imagine zoning would restrict this scenario in many cases.
Yeah, you’d think.
“Many” is the operative word there. It’s not all–not by a manure-covered mile. If you ever want to do a deep dive down a fun legislative rabbit-hole, dig into right-to-farm law, agricultural zoning, and the history of nuisance litigation. I might not be able to put a hog farm next to a tenement building downtown in a major metropolitan (or I might be surprised to find that, in fact, I can, if I’m willing to pony up for the land), but there are plenty of places where I could.
In any event, the example is ultimately hypothetical. The point is that trying to exterminate landlords can have disastrous knock-on effects, foreseen or otherwise.
Rant warning (that’s the end of the response; the rest is just venting about inequality).
It’s no accident that the American Dream is about owning land. Land ownership is central to our national identity, born as we are out of generations of homesteaders, tenant-farmers, explorers, slaves, and frontiersmen who rightly made no distinction between the tyranny of the plantation and that of the feudal lord (and that of the modern slumlord). Everyone wants land, and who can blame them? For a hundred-thousand years, owning land has been the best, most reliable route to prosperity and, ultimately, generational wealth.
The problem isn’t that landlords exist. It’s that landlords are rich. And notably, it’s absolutely not all of them. I don’t really have any beef with a professional who does well, retires, and buys a little summer house he rents out to vacationers eight months out of the year. The fact that it’s a profitable undertaking doesn’t really unravel the social fabric, since the profit motive is the only reason vacation homes exist for people (like me) who want them and have yet to save up enough to buy one outright.
Ultimately the problem is, as always, wealth disparity. A vacation home isn’t a big deal. A monopoly on an entire vacation community, however, is a different matter, because with it comes price fixing, capture of the local government, corruption, abuse, and all the worst consequences of gentrification–you know, capitalism. And again, it’s a problem you solve by taxing hoards of wealth, whether they’re in any individual’s pocket or hidden in a corporate offshore vault or securities labyrinth. It’s a problem we already solved a generation or two ago: Accumulate more wealth, pay more taxes, and continue to pay progressively more taxes until the profit motive is completely overshadowed by the societal benefit (via tax) of the new wealth generated. If you own a building in midtown Manhattan, you should get to pocket only the tiniest fraction of the rents it brings in. Not profitable enough? Then sell it. Plenty of the rest of us will stand in line to take it off your hands. Your corporation that hoovers up neighborhoods all over the country is suddenly in the red because a society-serving tax regime punishes you for said hoovering? Guess you better sell off some homes and watch the market correct itself.
All of that is to say that landlords serve an important function in an ordered society–providing the temporary use of otherwise unused land to persons who have not yet accumulated enough wealth to own their own land outright. We should not aspire to do away with that function, but rather simply to tax rent-seeking at a level that serves the society at large. It should be profitable to own a vacation home. It should never be profitable to own six.