Unconventional economics
Wednesday, January 20th, 2010 at 9:17 amI was amazed to learn that finally, economists are addressing one of my major gripes about their profession. Well, sort of, in a way.
The crux of the gripe is that economists only pay attention to things that can be counted, like money. This leads them to say that homesteading “doesn’t pay.” (Or it would lead them to say that, if they paid any attention to homesteading.)
Homemakers (formerly housewives), called attention to this, many years ago. Both homesteaders and homemakers obviously work, but since they’re not paid in cash, that work doesn’t count, so far as economists are concerned.
Likewise, a homestead’s production isn’t part of a nation’s output, and homestead tools aren’t considered capital goods.
Even worse, modern industrial agribusiness (sometimes mistakenly called “farming”) is measured only in terms of dollars. There is no accounting for the loss of soil fertility, and soil itself; no allowance for the waste of water; no measurement of the social losses as farms get bigger and bigger, and the schools, churches, businesses and communities formerly supported by thousands of small family farms sink into ruin. By this reckoning a cow, chicken or pig kept under concentration camp conditions is the same as one that is properly fed and cared for — and the maltreated creature might even be “worth more” in dollar terms.
And obviously then, an economist cares not one whit about the peace of mind a homesteader might get from eating fresh food, unadulterated by biocides; the pleasures of working with the soil and animals, with nature; or the many satisfactions to be found in independent country living.
That’s why I was astounded to read that a couple of economists are studying something more abstract than dollars and bushels. No, it has nothing to do with homesteading. They’re trying to put a price on the emotional benefits of having a pro sports team in town.
This excited me because, I ask you, is being a sports fan that different from raising chickens or goats? Might economists — and then newspaper writers and others, maybe even dribbling down as far as politicians — start paying attention to the hidden benefits of homesteading?
Maybe not. It just so happens that the study concerned the Minnesota Vikings. It further just so happens that the Vikings want Minnesotans to help pay for a new stadium, with a price tag of $870 million. Conventional economics — the kind that counts only dollars — have shown that publicly subsidized stadiums almost never return what governments put into them.
But what about civic pride and the other intangible benefits of having a home team? Shouldn’t that be worth something? What about the fun of wearing fake blond braids and goofy Viking horns? Maybe even nonfans just feel good about having a major league franchise. So the people looking for $870 million turned to unconventional economics.
The number crunchers came up with something they call “contingent valuation methodology.” It measures abstracts, but provides an answer in dollars. You can’t spend those dollars, but then at least you have a basis for comparison. Or an excuse for raising a coupla million.
The study determined that the Vikings have a “welfare value” of $702,351,890, or around $500 per Minnesota household.
Maybe I’ll stop griping, now that I’ve seen how this works. I’m not sure that I want some economist telling me that the million-dollar sunset I saw the other night was only worth $513.46. — Jd Belanger
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