Category: Property Rights

Entrepreneur Defends His Store with Gun

SpinelliAnthonyDefendedStore2011-06-05.jpg

“Anthony Spinelli, outside his store in the Bronx on Thursday, was called brave for shooting a man suspected of trying to rob his shop.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A23) On Arthur Avenue, a group of men piled out of Pasquale’s Rigoletto restaurant onto the sidewalk to pay their respects to a sudden local hero.

“Anthony, we love you,” they shouted across the street.
They summed up the local sentiment about a man, Anthony Spinelli, celebrated for protecting his livelihood. On Wednesday, Mr. Spinelli pulled one of two licensed guns in the store, and shot one of the three people suspected of trying to rob his Arthur Avenue jewelry store at gunpoint.
The Bronx neighborhood seemed energized by the event, which people here saw as a testament to the toughness of one of the last Italian neighborhoods in New York City.
“You don’t come in and try to take a man’s livelihood,” said Nick Lousido, who called himself a neighborhood regular. “His family’s store has 50 years on this block, they’re going to come in and rob him?”
On Thursday, Mr. Spinelli, 49, had returned to his shop and sized up the broken front windows and the mess inside. He said that a man and woman had entered his store, and the man had held a gun to his head while the woman had gone through jewelry drawers and stuffed jewelry into a bag. He said he had feared for his life, and that he was still shaken.
. . .
Next door to Mr. Spinelli’s shop is M & M Painter Supplies, which has photographs of Pope John Paul II and Mother Teresa next to a paint color chart on the wall.
“He’s a very brave man,” said the store owner, Ernie Verino. “He had the gun, and it takes guts to use it.”

For the full story, see:
COREY KILGANNON. “Merchant Shooting to Defend His Store Is Celebrated as Hero of Arthur Avenue.” The New York Times (Fri., February 18, 2011): A23.
(Note: ellipsis added.)
(Note: the online version of the article is dated February 17, 2011 and has the title “After Shooting, Merchant Is Hero of Arthur Avenue.”)

Government Finally Allows Steve Jobs to Creatively Destroy His Own House

(p. A18) WOODSIDE, Calif. — There may not be an app for it, but Steve Jobs did have a permit. And with that, his epic battle to tear down his own house is finally over.
For the better part of the last decade, Mr. Jobs, the co-founder and chief executive of Apple, has been trying to demolish a sprawling, Spanish-style mansion he owns here in Woodside, a tony and techie enclave some 30 miles south of San Francisco, in hopes of building a new, smaller home on the lot. His efforts, however, had been delayed by legal challenges and cries for preservation of the so-called Jackling House, which was built in the 1920s for another successful industrialist: Daniel Jackling, whose money was in copper, not silicon.
. . .
“Steve Jobs knew about the historic significance of the house,” Mr. Turner said. “And unfortunately he disregarded it.”
Mr. Turner said the mansion, which had 35 rooms in nearly 15,000 square feet of interior space, was significant in part because it was built by George Washington Smith, an architect who is known for his work in California. But Mr. Jobs had been dismissive of Mr. Smith’s talents, calling the house “one of the biggest abominations” he had ever seen.

For the full story, see:
JESSE McKINLEY. “With Demolition, Apple Chief Makes Way for House 2.0.” The New York Times (Fri., February 16, 2011): A18.
(Note: ellipsis added.)
(Note: the online version of the article is dated February 15, 2011.)

Property Rights Arise When Labor Creates Scarce Value

Marking snow-cleared parking spaces is a wonderful example of Demsetz’s theory of how property rights tend to emerge when the efficiency gains are large enough.
I remember when I was a graduate student in Chicago sometime in the mid-to-late 1970s, there were a couple of very snowy winters in which Chicagoans would similarly claim spaces from which they had cleared the snow.
I remember, but alas did not save, an article (probably in the Chicago Tribune) documenting how someone “stole” a marked space, and later returned to find that a garden hose had been used to cover their car in a considerable layer of ice.

(p. 8A) CHICAGO (AP) — A blizzard that dumped nearly 2 feet of snow on Chicago last week has revived a city tradition: Break out the patio furniture. Or, if none is available, suitcases, gar­bage cans, strollers, bar stools and milk crates work, too.

Chicagoans use all these items in a time-honored yet controver­sial system of preserving park­ing spots, a system known as “dibs.”
. . .
Actually, a city ordinance makes the practice illegal.
. . .
Even the city’s top police offi­cer sympathizes with those who do it.
“Think about it, you spend a couple hours clearing a spot, and somebody from another block takes it?” Superintendent Jody Weis said Friday.
. . .
“This is my spot because I worked hard to dig my car out,” said Max Rosario, 27, just be­fore he put his patio chair on the street. It joined 16 chairs, one slab of plywood, a plastic kids table, three bar stools and a TV dinner tray, among other things.

For the full story, see:
AP. “Chicagoans calling dibs after digging out; Chairs and other objects save precious parking spots that have been shoveled.” Omaha World-Herald (Sun., FEBRUARY 6, 2011): 8A.
(Note: ellipses added.)

The Demsetz paper is:
Demsetz, Harold. “Toward a Theory of Property Rights.” American Economic Review 57, no. 2 (May 1967): 347-59.

Bloggers See Bad Conditions for Entrepreneurs

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The chart above and the one below are from the recently-released results of the First Quarter 2011 influential blogger survey conducted by the Kauffman Foundation. (Tim Kane gave permission to put the charts on my blog.) artdiamondblog.com is one of the blogs included in the survey.

The results above show a perception that conditions are currently tough for entrepreneurs. The chart below displays one of the main reasons: the current economy is perceived as uncertain and fragile. There are many reasons for the uncertainty, but one of them is surely that the bloggers have doubts about the depth of support in government for the institutions and policies upon which entrepreneurship depends (like private property, restrained regulations, and low taxes).

For a full PDF report on the 2011 Q1 survey results, see:
http://www.kauffman.org/uploadedfiles/econ_blogger_outlook_q1_2011.pdf

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Luddism in 1811 England

(p. 243) The stockingers began in the town of Arnold, where weaving frames were being used to make cut-ups and, even worse, were being operated by weavers who had not yet completed the seven-year apprenticeship that the law required. They moved next to Nottingham and the weaver-heavy villages surrounding it, attacking virtually every night for weeks, a few dozen men carrying torches and using prybars and hammers to turn wooden frames–and any doors, walls, or windows that surrounded them–into kindling. None of the perpetrators were arrested, much less convicted and punished.

The attacks continued throughout the spring of’ 1811, and after a brief summertime lull started up again in the fall, by which time nearly one thousand weaving frames had been destroyed (out of the 25.000 to 29,000 then in Nottingham, Leicestershire, and Derbyshire), resulting in damages of between £6,000 and £10.000. That November, a commander using the nom de sabotage of Ned Ludd (sometimes Lud)–the name was supposedly derived from an apprentice to a Leicester stockinger named Ned Ludham whose reaction to a reprimand was to hammer the nearest stocking frame to splinters–led a series of increasingly daring attacks throughout the Midlands. On November 13, a letter to the Home Office demanded action against the “2000 men, many of them armed, [who] were riotously traversing the County of Nottingham.”
By December 1811, rioters appeared in the cotton manufacturing capital of Manchester, where Luddites smashed both weaving and spinning machinery. Because Manchester was further down the path to industrialization, and therefore housed such machines in large factories as opposed to small shops, the destruction demanded larger, and better organized, mobs.

Source:
Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.
(Note: italics and bracketed word in original.)

Environmentalist Antiglobalization “Vandals” Destroy Giorgio’s Corn

FidenatoGiorgioItalianFarmer2010-12-21.jpg “Last week, Giorgio Fidenato, who had planted genetically modified corn, stood amid stalks that had been trampled by antiglobalization activists.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A4) VIVARO, Italy — Giorgio Fidenato declared war on the Italian government and environmental groups in April with a news conference and a YouTube video, which showed him poking six genetically modified corn seeds into Italian soil.

In fact, said Mr. Fidenato, 49, an agronomist, he planted two fields of genetically modified corn. But since “corn looks like corn,” as he put it, it took his opponents weeks to find his crop.
The seeds, known as MON810, are modified so that the corn produces a chemical that kills the larvae of the corn borer, a devastating pest. Yet while European Union rules allow this particular seed to be planted, Italy requires farmers to get special permission for any genetically modified, or G.M., crop — and the Agriculture Ministry never said yes.
“We had no choice but to engage in civil disobedience — these seeds are legal in Europe,” said Mr. Fidenato, who has repeatedly applied for permission, adding that he drew more inspiration from Ron Paul than Gandhi.
. . .
After Mr. Fidenato’s provocation, investigators did genetic testing to identify the locations of the offending stalks in the sea of cornfields that surround this tiny town. Officials seized two suspect fields — about 12 acres — and declared the plantings illegal. Greenpeace activists surreptitiously snipped off the stalks’ tassels in the hope of preventing pollen from being disseminated.
On Aug. 9, 100 machete-wielding environmental activists from an antiglobalization group called Ya Basta descended on Vivaro and trampled the field before local police officers could intervene. They left behind placards with a skull and crossbones reading: “Danger — Contaminated — G.M.O.”
Giancarlo Galan, who became agriculture minister in April, called the protesters “vandals,” although he did not say he would allow genetically modified crops. But Luca Zaia, the previous agriculture minister and president of the nearby Veneto region, applauded the rampage, saying: “There is a need to show multinationals that they can’t introduce Frankenstein crops into our country without authorization.”
Over the past decade, genetically modified crops have been a major (p. A8) source of trade friction between Europe and the United States.
Both the United States Food and Drug Administration and the European Food Safety Agency say that there is no scientific evidence that eating MON810 corn is dangerous.
. . .
. . . it is not clear that the battle of Vivaro will have a quick victor. Jail time or at least fines are expected for Mr. Fidenato (illegal planting) and Mr. Tornatore (trespassing and destroying private property).

For the full story, see:
ELISABETH ROSENTHAL. “In the Fields of Italy, a Conflict Over Corn.” The New York Times (Tues., August 24, 2010): A4 & A8.
(Note: ellipses added.)
(Note: the online version of the review has the date August 23, 2010.)

CornBorer2010-12-21.jpg“An ear of corn infested with corn borers. A modified variety is meant to counteract the pest.” Source of caption and photo: online version of the NYT article quoted and cited above.

William Rosen’s “The Most Powerful Idea in the World”

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Source of book image: http://ffbsccn.files.wordpress.com/2010/07/the-most-powerful-idea-in-the-world.jpg

The range of William Rosen’s fascinating and useful book is very broad indeed. He is interested in THE question: why did the singular improvement in living standards known as the industrial revolution happen where and when it did?
The question is not just of historical interest—if we can figure out what caused the improvement then and there, we have a better shot at continuing to improve in the here and now.
I especially enjoyed and learned from William Rosen’s discussion, examples and quotations on the difficult issue of whether patents are on balance a good or bad institution.
Deirdre McCloskey taught me that the most important part of a sentence is the last word, and the most important part of a paragraph is the last sentence, and the most important part of a chapter is the last paragraph.
Here are the last couple of sentences of Rosen’s book:

(p. 324) Incised in the stone over the Herbert C. Hoover Building’s north entrance is the legend that, with Lincoln’s characteristic brevity, sums up the single most important idea in the world:

THE PATENT SYSTEM ADDED

THE FUEL OF INTEREST

TO THE FIRE OF GENIUS

In the next few weeks I will occasionally quote a few of the more illuminating passages from Rosen’s well-written account.

Book discussed:
Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

“Intimidation, Threats and Violence Against the White Farmers” in Zimbabwe

ForcingWhiteFarmerOffLand2010-08-04.jpg“A man tries to force a white Zimbabwean farmer off of his land in “Mugabe and the White African.”” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. C9) Lucy Bailey and Andrew Thompson’s “Mugabe and the White African” is a documentary account of the efforts of Mike Campbell and his son-in-law, Ben Freeth, to hold onto their farm. It tracks their precedent-setting lawsuit against Robert Mugabe, the authoritarian Zimbabwean president, in a regional African court, as well as events on the ground in Zimbabwe: intimidation, threats and violence against the white farmers still holding out after a decade of land seizures by the government.

Many viewers will leave “Mugabe and the White African” thinking that they have seen few, if any, documentaries as wrenching, sad and infuriating, and those feelings will be justified. What has happened (and continues to happen) to the Campbells, the Freeths and some of their white neighbors is not only unjust but also a horrifying, slow-motion nightmare. That sensation is reinforced by the movie’s political-thriller style, partly a result of the covert filming methods necessary in a country where practicing journalism can get you thrown in jail.

For the full movie review, see:

MIKE HALE. “Fighting His Country to Keep His Farmland.” The New York Times (Fri., July 23, 2010): C9.
(Note: the online version of the article is dated July 22, 2010.)

Not All Entrepreneurs Believe in Property Rights

OdomBobbTitanCement2010-05-20.jpg“Titan Cement’s Bob Odom in March at the site of a proposed plant near Wilmington, N.C. The company says hundreds of jobs would be created.” Source of book image: online version of the WSJ review quoted and cited below.

Is it just me, or does entrepreneur Lloyd Smith, quoted below, come across as a bit arrogant in believing the government should enforce his view of what Wilmington should be like, even if that means violating the property rights of the owner of the land on which the cement plant will be built? (And even if that means that would-be janitor Ron Givens remains unemployed.)

(p. A3) WILMINGTON, N.C.–The old economy and the new economy are squaring off in this coastal city, which is having second thoughts about revisiting its roots in heavy industry.

Titan Cement Co. of Greece wants to build one of the largest U.S. cement plants on the outskirts of the city and is promising hundreds of jobs. The factory would be on the site of a cement plant that closed in 1982 and today is populated mainly by fire ants, copperhead snakes and the occasional skateboarder.
The proposed $450 million plant by Titan America LLC, Titan’s U.S. unit, is welcome news to Ron Givens Sr., a 44-year-old unemployed Wilmington native. Mr. Givens’s father supported 12 children while working at the former Ideal Cement plant, and Mr. Givens and two brothers have now applied for jobs with Titan. “I will apply for janitor if that’s what is going to get me into that plant,” he said.
But thousands of opponents have petitioned local and state politicians to block the plan. They object to the emissions from the plant and say it will scare off tourists, retirees, entrepreneurs and others who might otherwise want to live here.
An initial state environmental review has dragged on for two years, and critics of the plant have filed a lawsuit seeking to further broaden the review. The governor, amid public pressure, has asked the State Bureau of Investigation to probe the plant’s permitting process.
“That’s their tactic: Delay, delay, and at some point Titan will leave,” said Bob Odom, Titan’s general manager in Wilmington, of opposition efforts.
Among the most vocal opponents is a fast-growing class of high-tech entrepreneurs and telecommuters who moved to Wilmington in recent years, drawn to the temperate climate, sandy beaches and good fishing. They argue the plant, by curbing the community’s appeal, will cost more jobs and tax revenue in the long run than it produces.
“I think we can be discriminating,” said Lloyd Smith, a 43-year-old entrepreneur who moved here from northern Virginia in 2001 and founded Cortech Solutions Inc., a neuroscience company with nine employees and about $5 million in annual sales.
The standoff in Wilmington reflects a broader tug-of-war across the country as communities try to kick-start employment. It is unclear how much manufacturing will power the long-term U.S. economic recovery–even in southern states that have long embraced heavy industry but have begun to feel the new economy’s pull.

For the full story, see:
MIKE ESTERL. “Clash of Old, New Economy; Cement Plant Is Resisted by Some Neighbors Who Would Rather Lure High-Tech Jobs.” The Wall Street Journal (Tues., April 6, 2010): A3.

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Source of graph: scanned from print version of the WSJ article quoted and cited above.

Russell Crowe as a Libertarian Robin Hood Fighting High Taxes

RobinHoodRussellCrowe2010-05-14.jpg “Mr. Crowe as Robin Hood.” Source of caption and photo: online version of the NYT review quoted and cited below.

Ridley Scott has directed some entertaining movies (Blade Runner and Alien to name two) and he also directed one of the most famous tech ads of all time: upstart Apple smashing the uptight corporate conformity of IBM.
And now he brings us what we could use about now: a libertarian Robin Hood who defends property rights and fights high taxes.
When all is said and done, liberal NYT reviewer A.O. Scott doesn’t much like the movie in the full review that is briefly quoted below. (But I want to see the movie anyway.)

(p. C1) You may have heard that Robin Hood stole from the rich and gave to the poor, but that was just liberal media propaganda. This Robin is no socialist bandit practicing freelance wealth redistribution, but rather a manly libertarian rebel striking out against high taxes and a big government scheme to trample the ancient liberties of property owners and provincial nobles. Don’t tread on him!

For the full review, see:

A. O. SCOTT. “Rob the Rich? Give to the Poor? Oh, Puh-leeze.” The New York Times (Fri., May 14, 2010): C1 & C14.
(Note: the italics in the title of Scott’s NYT review, appeared in the print, but not the online, version of the review.)

“We’re Taking Care of the Streets, Just in Case They Try to Rob Us”

SilvaJaimeStickProtectStreet2010-03-17.jpg“Jaime Silva, 10, wielded a stick with a nail on the end in Los Ángeles, Chile, “just in case they try to rob us,” he said.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A16) LOS ÁNGELES, Chile — At night, residents huddle around bonfires and guard their streets with torches and sticks, ready to repel outsiders who might try to break into their darkened homes.

Elsewhere, the military and the federal police enforce nighttime curfews, guard the entrances to supermarkets and monitor gasoline rationing to make sure no one gets more than his share.
As darkness settled in and the curfew took effect on Wednesday, residents on the outskirts of Los Ángeles began placing wooden barriers in front of their streets and picking up weapons to protect against armed bandits they said were taking advantage of the chaos to steal from their homes.
“We’re taking care of the streets, just in case they try to rob us,” said Jaime Silva, 10, as he wielded a thick stick with a nail on the end.
Nearby, his mother looked on, her arms crossed, watching her son and other boys as they stood guard behind the barrier.
“We’re trying to take care of the little we have here,” said the mother, Ana Beroiz, 34, noting that there had been robberies in other parts of town. “We’re here all night, first the mothers and then the fathers.”

For the full story, see:
ALEXEI BARRIONUEVO. “Fears of Lawlessness Prompt Show of Force in Chile.” The New York Times (Thurs., March 4, 2010): A16.
(Note: the online version of the article is dated March 3, 2010.)