I am glad to see the issue of community brought up again, and agree that it
is changing by definition.

There are many indications that a renewed sense of community is indeed
emerging, both in economic and social terms, that is, both in infrastructure
like towns built for greater not less human interaction and in human
connectivity, manifested in the many layers of interest in social networks
old and new.  Political community incorporates both of the former, and I
won't go into that now since you get a lot of political input from me
already.

As to the Vermont example of equal property taxes across the board to
encourage better education for all, Vermont is joined by Texas, which passed
its own so-called Robin Hood laws in the late 80s, I believe.  Of course,
Highland Park in Dallas, and River Oaks in Houston grumbled about sharing
and the injustice of it all, but the problem in school funding was beginning
to affect not just local communities but the integrity of the whole (state)
so that people looked beyond their own provincial borders to vote this into
place.  Texas, unlike Vermont, has a substantial minority population, which
contributed both to the tension of the debate and the perception of the
intended consequences.

Yes, judicial enforcement of laws society agrees are necessary and good for
perpetuity are often taken with large doses of resentment.  But we must look
beyond our own immediate spheres, we must utilize that higher state of
consciousness, or transitional ego, that is sometimes just as essential than
fight or flight survivalism.

In America, we will always struggle with the mighty historical question of
one nation or 50 states, and the fact that there are 50 of them makes it
more complicated to apply lessons from one to the rest without bumping up
against those incessant questions of states' rights, regionalization, local
control and individual freedom.

If land and natural resources were still in unlimited abundance, we would
undoubtedly still pursue pioneer expansionism in all things; as it is, we
are beginning to realize, as did Europe before us, that social and legal
structures must change to accommodate the very real limits of
sustainability - oops, survival.  The transition is likely to be uneven and
traumatic as we leave behind the pioneer mentality and evolve to something
else, something hopefully more mature and less destructive.  There is reason
for optimism: we can retain the best of our past traditions and incorporate
new concepts, technology and science to accommodate the necessity of
existing in a smaller world with more people on it sharing diminishing
resources.  We just have to find the will to do it.

KWC

Perhaps "community" is itself changing.  FW is a sort of community and has
appeared and persisted over time.  Entirely voluntary this group could be
sitting around the cracker barrel in a general store in Vermont but sits
around cyberspace.

arthur

-----Original Message-----
From: Keith Hudson [mailto:[EMAIL PROTECTED]
Sent: Tuesday, August 12, 2003 3:05 AM
To: [EMAIL PROTECTED]
Subject: 054. Community as the next Status Good?


So far, I have tended to concentrate on status and on "hardware" Status
Goods. Many other aspects of our culture are, of course, permeated by
status -- the arts, fashions, politics, etc -- even scientific hierarchies!
-- but there is no reason why we shouldn't consider what could be called
"software" goods within economics. Indeed, sectors such as financial
services are growing apace in developed countries, and there will probably
be vast developments in educational delivery in the coming years.

On my website home page (which should appear very shortly) I will be
describing sexual choice, status and community inclusion as being
intimately interlinked. What is community? you may well ask. It has almost
completely disappeared in modern society. Adequate discussion of community
would take a chapter of a book at least so I will not attempt it here, save
to mention briefly what I think are the two chief reasons for its decline.
One is that each successive new form of governance in human history (each
initiated by an innovative weapon of war) has become more comprehensive in
its scope and has reached down deeper and deeper into the personal lives of
its subjects. The second, much more recent, is that the energetic basis of
economic activity super-abundant in the last 200 years or so with the
discovery and exploitation of very cheap fossil fuels -- coal, oil and
natural gas. The cheapness of freight and travel in that period has
probably done more than anything else to tear the workplace and the living
place apart. If we have anything that can be called a genuine, albeit
fragile, community these days, then it's more likely to be at our place of
work than in the area in which we live.

But I want to dwell only on the first aspect for the moment. Types of
governments have not only become larger but they have also become more
centralised. This has become so, especially in the last half-century where
notions of equality of human rights and educational opportunity have held
sway and must be spread over wider and wider areas of a country (never mind
that the more equal the opportunity, the easier it is for the most able to
be creamed off and attracted away from the place in which they were brought
up). The result is that local communities have been increasingly denied the
normal powers they used to have and, in short, have become a-responsible in
most cases and irresponsible, even criminal, in some.

The following article is an out-and-out party political piece -- rather
unusual for the Financial Times -- but it's an interesting case history of
what happened in Vermont where Howard Dean was governor. The blame can't be
put on him particularly. Other governors in other American states have been
doing the same because that's the way they've been impelled by stronger
forces.

But if belonging to a community really is an important part of our genetic
make-up, then we either face extinction if present trends continue (and
perhaps the steep decline in birth rate in Europe is a forerunner of this)
or there will be a mounting pressure for community to be re-established. To
a limited extent this is already happening. Gated communities for the
wealthy and the retired are gradually becoming more numerous, at least in
America and England. These self-managing communities are condemned by many
for being standardised, even lacking in responsibility for wider society,
but at least their members feel secure from burglary and vandalism there
and, because they are usually rich and/or retired folk, with plenty of time
at their disposal, then they do have a much richer sense of community than
is possible eleswhere.

But they could be Status Goods in the making, could they not? As always,
Status Goods have to be purchased by the rich and the higher status first
because only they can afford them initially. But is there not a way that
gated communities could not be packaged more cheaply as time goes on? Here
I must declare an interest because I am a shareholder in an architectural
business which has been closely in touch with hundreds of house builders,
large and small, all over the UK in the past 15 years. In that time there
has been a distinct trend towards planning layouts in which houses tend to
be nested together, rather than strung out in long roads which was common
before then. They are not gated communities but certainly a step towards
them.

I think it is very possible that an innovative house-developer in the
coming years could now take the next step towards building nested groups of
houses, together with an office where individuals (who have quite separate
jobs with distant firms) could actually work. One of the greatest
disappointments in the Internet age has been the slow take-up of
distance-working. Only a small fraction of those jobs which could be done
in this way have actually become detached from a central office. The reason
that researchers giv e for this reluctance to work from home is that people
require company when at work. They don't like working by themselves at
home, even though technically they could easily do so. However, if there
were purpose-built communities with office accommodation then a true
community might be possible -- where people both work and live together.

I think that this, as the next significant Status Good is a strong
candidate. Meanwhile here's Amity Shlaes' description of what went on in
Vermont:

KH

<<<<
DEAN THINKS BIG ON REDISTRIBUTION

Amity Shlaes

As Howard Dean gains in popularity, he is also gaining a reputation as a
paradox. On the one hand, Mr Dean is campaigning for the Democratic
nomination for president from the feral and populist left. He is making
1970s-style anti-authoritarian statements, such as: "We're going to take
our country back!"

On the other hand there is the Dean record as governor of Vermont
(1991-2003), from which office he religiously tended the state's bond
rating. The Vermont period, we are told, proves him to be a judicious,
moderate and fiscal conservative.

In the course of his Vermont tenure, Mr Dean did indeed balance the books
But he also supported legislation that led to a doubling of the state
budget in 10 years. What is more, the change involved more than increased
tax and spending. Mr Dean also participated in -- and at points led -- a
dramatic centralisation of government to the state capital, Montpelier. In
the Dean era, Vermont's steepled villages and mill towns had their budgets
stripped and lost core powers they had taken for granted for centuries.

The mechanism of this audacious power-grab was education. In America,
secondary and elementary'schools were historically a local matter, even a
village matter. Citizens paid property taxes to their towns. The towns in
turn built the school and hired the teachers.

The education provided was far from perfect. Over the past 50 years many
state governments have topped up local budgets -- as does the federal
government to varying degrees. Nor could the old local system rectify
racial injustices: ghetto neighbourhoods suffered from narrow tax bases
and, therefore, often worse schools.

But most of the time, and for most of US history, local finance worked
pretty well. And, more often than not, it perpetuated a virtuous cycle. In
towns with good schools, property values increased, which in turn generated
more cash to, pay for their schools.

And that was the case in Vermont, a small state with a strong history of
home rule (after the Thirteen Colonies revolted against Britain, Vermont
revolted against the Thirteen Colonies). School policy was, for example,
often set at an annual town meeting, where every citizen had a say, as in a
Norman Rockwell painting.

But, of course, spending in the states, including Vermont, was rarely
"equal" in the sense that every town spent the same for every child. And
throughout the 1980s and 1990s, state courts increasingly ruled that
individual pupils were entitled to equal dollar spending. Many of these
rulings concerned issues that did not affect homogeneous places like
Vermont, such as race. Nonetheless, in a 1997 decision known as Brigham,
Vermont courts followed the trend and ruled for equal education entitlement.

Enter Governor Dean and the Vermont legislature. There were a number of
ways to comply with the court finding, at least in theory. They could, for
example, have tried to fight for a simple increase in state subsidies. But
everyone -- the courts, the state legislature, the school unions in their
Montpelier headquarters and, in the end, Mr Dean -- wanted something
radical. They would throw out the old town hall system. They would create a
uniform state property tax at a statewide rate, diverting hundreds of
millions in local property taxes to Montpelier. The state would then share
the money out in a flat, per child payment -- something over $5,000
(�3,100) -- to ensure equity. From now on Montpelier would control purse
strings and policy. The new school law, known as Act 60, also imposed a
range of new state regulations on schools. (Ironically, Mr Dean now
criticises President George W. Bush's education mandates.) Governor Dean
called the new era "joyous".

The change did indeed mean that per capita spending on some children in the
poorest towns increased. But it also did much to destroy the civic culture.
Localities now had less say in a number of areas of education --
curriculum, staff and, of course, budget. Many towns' school budgets were
reduced by 20 or 30 per cent. Communities that had paid high taxes still
paid high taxes. But they no longer received value for their money in the
form of high-quality local schools. The virtuous circle was broken.

Act 60 generated class antagonism in Vermont, especially between the "have
not" towns that received subsidy for schooling and the "haves" that paid
for it -- wealthy ski towns such as Stowe and Killington. There was more
bitterness: if the "gold" towns, as they were also called, wanted to
sustain their old high level of school spending, they were allowed to do
so. But only if they poured yet more cash for every additional dollar they
spent on themselves into a special pot for needier towns. People called the
new legislation a "Robin Hood law".

Mr Dean can point to a number of facts in his defence. One is.that Vermont
was merely part of the national trend. Another is that the Vermont courts
and legislature left him no choice but to follow suit. But for all his
avowed pragmatism, Mr Dean ultimately pushed for a redistribution of wealth
and political power. As John McClaughry of Vermont's free market Ethan
Alien Institute points out, Mr Dean presided over increases in the sales
tax, the petrol tax, the corporate tax and the tobacco tax.

The point is a simple one. In the context of Vermont's left-leaning
legislature, or a Wall Street bond house, Mr Dean may be a moderate
compromiser. But as the Vermont schools story shows, he is clearly
comfortable with big government.

Financial Times 11 August 2003
 >>>>>

Keith Hudson, 6 Upper Camden Place, Bath, England
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