Tuesday, January 30, 2018

The Segregation That Could Be Positive

Decades ago, in my working association with marginalized groups which benefited from library literacy programs and related projects, I recall a common refrain which basically went like this: We want the freedom to associate with others who are different from us in some respects. But there are still times when what we appreciate most, are the meaningful connections in our own groups.

There's good reason for such a response. But why does segregation still appear as such a problem? It depends in part on whether segregation is actually imposed from without, especially since today's exclusionary regulations for production and consumption are quite subtle (or convoluted) as compared with the upfront discrimination of the recent past. In times of economic stagnation, there's a stronger perception of zero sum outcomes as well, implying "too little room" for everyone to participate in centralized national redistribution. When the economic pie appears as though already accounted for, more struggles ensue, involving anyone perceived as somehow standing "at the back of the line".

Could group self selection (voluntary decentralized segregation) alleviate this reality? New forms of decentralized community could prove effective, should voluntary groupings gain permission to generate broader marketplace capacity for non tradable sector wealth. Even better, by doing so, voluntary groupings would not have to remain in a dependent position, for the limited resources deriving from centrally managed economies. This matters, since so many of today's institutions representing the middle classes are already in a dependent position, in this exceedingly long single line.

It's worth thinking about the forms of natural segregation that people actually desire, especially since self selected segregation makes it easier for individuals to trust one another enough to engage in productive collaboration and wealth building. Recently, for example, Steve Randy Waldman wrote of segregation as a normal good. Nevertheless: Even though housing segregation sometimes come across as racial in nature, the deeper segregation of our time is actually occurring between income levels and rights of production.

The casual segregation of shared consumption levels, is increasingly a common response for social groupings in multiple respects. One obvious example is variations of consumption patterns which have increased the social divisions of extended families. Today, family get togethers tend to revolve around recreational getaways (rather than family homes), which effectively limits the participation of family members who are deterred by the additional travel costs. This is one instance in which consumption patterns have directly contributed to the loneliness which lower income levels can experience.

Decentralized communities could create new forms of infrastructure which also reinforce shared consumption that need not be completely income driven. This would also alleviate loneliness to a great extent, because lower income levels would gain more local infrastructure which encourages positive means of association.

By focusing on greater economic freedom for lower income levels, I believe that libertarians would ultimately be able to do a better job of preserving greater economic freedom for all citizens of advanced nations. The extensive libertarian focus on economic freedom for high income levels, while it encourages the economic development of emerging nations, has unfortunately backfired for citizens in advanced nations. Yet everyone needs relief from the chaotic effect of extensive dependence on the single, centralized line that is the economic access of the present. Economic inclusion is - more than anything - about the ability of any given society, to find means to expand the production frontier of its general equilibrium potential.

Only consider how the right of exit has been far less effective for groups with limited income, because they too often lack the internal means to legally generate non tradable sector production and consumption. After all, it is the efforts of society to protect itself from the chaos of the marginalized, even as the marginalized face extensive production restraints, which limits the economic and social freedoms we all desire. Again, the segregation that would be of a positive nature, would allow groups to sort for common values and preferences in working together, so as to build new sources of wealth and prosperity.

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