Ham, Bacon, and Eggs not for Breakfast, but the Future

Friday night Mineral County held its annual Ham, Bacon, and Eggs Sale and the crowd appeared much larger than last year and prices also seemed higher. I was glad to see the kids get a good profit from their efforts. The whole Potomac Highlands business community and beyond was out in force to support these young capitalist. There were Grand Champion winners singled out, but all were winners. I’m not just saying that to be nice, they truly are winners. They learn that you can better yourself and be rewarded through hard work. Even the last place finisher in any one category won, their hard work was rewarded at the sale.

My fear is the future may hold another lesson, and that is government can destroy your hard work or place limits on your future hard work. Interestingly earlier in the day I had a conversation with a person that lived near one of the Future Farmers (I don't believe he knew that) and this person was telling me the county needed zoning, because he shouldn't have to deal with the a farm near his home. I was polite to the person and listened but I’m thinking, “This farm has been here for over 100 years, and you moved here recently. Didn't you notice the fences, barns, and animals that you had to drive by before you bought?” The answer is of course he did.

July 4th, 1776 the founding fathers signed a great document that stated we have "certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness." Zoning flies in the face of these underlying princles of freedom. Property rights are a corner stone of liberty. That same year Adam Smith published "Wealth of Nations" and in it stated "The first and chief design of every system of government is to maintain justice: to prevent the members of society from encroaching on one another’s property, or seizing what is not their own. The design here is to give each one the secure and peaceable possession of his own property." Property Rights allow us to use our property without the interference of neighbors or government, as long as we do not violate the rights of others.

Now proponent's of Zoning, like to pretend that a farmers discarded rusting tractor sitting in his field is a violation of their rights because it is visually unpleasing. I checked death certificates in West Virginia, and I found none listing a cause of death as, "looked at a rusting tractor," so it does not deprive us of life. Unless the farmer chains his neighbor to the tractor, it does not deprive him of liberty. Third we only have the right to only pursue happiness. We are not guaranteed happiness as a right, and a rusting tractor doesn't stop that pursuit. Now if the farmer decides to set fire to his tractor and sends toxic fumes into his neighbors yard, then he is violating his neighbors rights, because those fumes could cause a risk to his life. The tractor just sitting there violates no ones rights.

Zoning takes away the rights of the land owner. Its purpose is to give government control over an owners property and limiting the owners use, while no limits are placed on the owners responsibilities under the law. The land owner only can use his property by permission of the government, not by right as the founding fathers intended. Zoning gives power favoring those with political and monetary clout at the expense of the original land owners and less affluent. It creates class warfare that only benefits the wealthy, and destroys our way of life.

At the Ham, Bacon, and Eggs sale the Future Farmers learned first hand that the Free Market allows you to pursue your dreams, and be rewarded if you work hard and do your job well. The founding fathers were farmers and put protections in to protect property rights. Zoning would be turning our backs on that principle of liberty, and that is not a future in which I want to live.

Free Market Forces versus Central Planning

Right now the Mineral County Planning Commission is in the mist of developing its Comprehensive Plan under Section §8A-3 of the West Virginia code. The county is spending $20,000 with the WVU Extension office to prepare the plan, a bargain compared to what other counties have spent. Knowing the complexity of the economy, I have to ask the question, beyond planning what government will do as far as libraries, parks, water, etc; can government effectively plan Economic Development and Land Use in the private sector as outlined in the state code?

Governments have tried to plan economies and land use for hundreds of years, and I can think of none that ever found success. Starting in 1607 over the course of 2-years 604 people were sent to the centrally planned Jamestown settlement in Virginia, all but 98 died of starvation 6 months after their arrival. In 1611 Sir Thomas Dale took charge of the Virginia Colony, eliminated central planning, instituted private property and within a few years the colony that lost 80% of its population to starvation was trading excess food to the Native Americans. Central economic planning and loss of property rights in the Soviet Union led to the starvation deaths of millions in 1932 and 1933, in China 20 to 30 million starved between 1959 and 1962. The Soviet Union collapsed under a centrally planned economy, and China survives by restoring private property rights and switching to a free market system.

Economic Development and Land Use are linked to prosperity, yet they are two separate sections of the state code on developing a comprehensive plan. That alone speaks volumes of the government’s ability to effectively plan that which it doesn’t understand. While local WV governments do not have the power to centrally plan production, they can restrict the economy through removal of property owner rights more commonly called Zoning. Let’s make no mistake zoning is only a restriction; it can never enhance the economy. A free market needs choices to operate, remove those choices through zoning and you create inefficiencies that slow or reverse economic growth.

The first looser is the entrepreneur, which create most of the jobs in the state and usually start those businesses at home. A good example is Thermo Gauge located in Fort Ashby, WV, which is currently operating out of a home while they finalize plans to move into the Fort Ashby industrial park and expand. Residential zoning would have killed this West Virginia success story before it got started. Removing the choice of starting a business in the home through government imposed land use restrictions raises the barrier to entry. It forces an entrepreneur to rent elsewhere or give up. The free market will also give the homeowner that does not want to live next to a business an option, an another entrepreneur will fill the need with a subdivision with deed covenants restricting home businesses. The free market will restrict itself on sound economic principles. Wal-Mart is not going to build a super center 6 miles down a county road that has little traffic just because land is cheap, and unrestricted. Wal-Mart knows they need to locate on a major thoroughfare to be competitive. Industry will locate were it can get is goods to market easily usually where rail, interstate or barge shipping is an option.

The dark sides of zoning are they create a class of public officials with the power to restrict the self-determination of land owners with no consequences for themselves. This power favors those with political and monetary clout at the expense of the original land owners and less affluent. Land use restrictions also create regulatory takings, this happens when a governing body restricts the use of private property so that the value is lessened. The victim of a regulatory taking still holds deed to the property, but much of its value will have been removed without compensation.

The answer to my question is government should stay out of central planning as much as possible. While not perfect, the free market will always be smarter and fairer than the bureaucrats when deciding economic and land use issues.