A Second Helping of First Principles:
Testimony to the Michigan Senate Committee on Economic Development
And Regulatory Affairs
March 2, 1999
Consider the situation of our cities as they compare with the state in general. They bear a disproportionate level of crime, unemployment, and poverty. It may not be coincidental that they are also behind the state when it comes to levels of homeownership. In 1997, roughly 73% of Michigan’s families owned their own homes. Contrast this with our core cities where the average is just below 50% and you begin to see the problem.
It is not difficult to slip from here into the language of crisis—indeed you could hardly read a book or an article written in the past twenty years without seeing the word crisis—often in the title of the work itself.
Yet, this is no longer an accurate way to describe urban areas: Renaissance Zones and a generally strong economy have helped bring jobs back to cities. We have seen an equal resurgence of stadium construction and other entertainment facilities. Yet, true renaissance requires that cities be more than places to work and play—they also need to be great places to live and raise a family. Thus, as a compliment to the many exciting things we have done in Michigan, we need to close the loop and address our neighborhoods. This is the intention of the Michigan Urban Homestead Initiative.
Today we will hear about how the program works. Next week we will hear about a complimentary set of proposals to reform Michigan’s Tax Reversion process—something important not only for homesteading programs, but for community and economic development in general.
Regarding the benefits of homesteading we should bear in mind both the general value of homeownership and the merit of homesteading as a means of promoting it:
Homeownership is beneficial along several lines. It gives families a sense of permanency and a stronger connection to their community; it contributes to a positive self-identity, and it promotes healthy, thriving neighborhoods. Perhaps most importantly, owning a home allows a family to build equity, which is the most reliable way to promote social and economic mobility, allowing families to move out of poverty.
Likewise, Homesteading is a desirable means of promoting homeownership in many cases. It is not a handout. Instead, it seeks to unlock the productive capacity of a family and allow people to take charge of their own lives.
In short, Homesteading embraces the same principles that made our country great: Private Property, Personal Responsibility, and Community. These are the first principles that gave life to the American Dream; it will be a second helping of these first principles that keeps that dream alive in our cities.