Author Archives: legallysociable

Habitat for Humanity limits foreclosures for lower-income homeowners

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Some recent data about Habitat for Humanity suggests that it may still be possible to have lower-income homebuyers without higher risks of default or foreclosure:

A recent study led by the Cox School of Business at Southern Methodist University, which was commissioned by the Dallas branch of Habitat, found that foreclosures in Habitat’s Dallas market were less than 2% last year. Although the report only looked at the Dallas office of Habitat, the findings mirror those found in other Habitat offices across the country, the organization says.

If this data holds up across the country, we should then ask why Habitat owners have such low foreclosure rates. Is it just because Habitat for Humanity has a limited operation each year (a small sample to work with) or is there something about their program that makes a difference?

The article suggests that Habitat’s particular program is what makes the difference: the homebuyers go through “home-ownership education,” there is consistent interaction with Habitat after the home purchase, the purchased homes are relatively modest (not “McMansions”), and Habitat imposing a less punitive late fee for late mortgage payments. One of the study’s authors sums up the impact of what Habitat does:

“These are practices that I think any bank should implement, particularly after looking at the foreclosures in the last five years,” said Paul Hendershot, lead author of the Dallas Habitat report and an adjunct University of North Texas professor.

It would probably cost quite a bit for lending institutions to adopt the practices of Habitat for Humanity for each mortgage holder. While the up-front costs are prohibitive, the lenders would save down the road as homeowners would go through fewer foreclosures.

The quality of music in a post-Napster world

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David K. Levine over at Against Monopoly pointed me to a recent paper (PDF) by economist Joel Waldfogel at the University of Minnesota titled “Bye, Bye, Miss American Pie? The Supply of New Recorded Music since Napster”.  As the title implies, Waldfogel investigates the effects of Napster (and its file-sharing progeny) on the music industry:

Economists generally agree that monopolies are bad. Governments grant some of the basic textbook examples of monopolies for intellectual property, in the form of patents and copyrights. Their bad effects – allowing prices above marginal costs and therefore restricting the supply of output – are thought to be justified by their incentive effects on production. But apart from introspection and anecdotes, we don’t really know much about the effects of remuneration incentives on production in the music industry.…Does the prospect of greater rewards bring forth more music? If so, then the past decade, when the ability for sellers to generate revenue from recorded music has fallen as much as half, should be a dry period for music. This is the question we address in this study. [emphasis added]

Noting that other studies have found undiminished musical output (in terms of volume) in the post-Napster world, Waldfogel attempts to measure musical quality using “a time-constant quality threshold based on critics’ retrospective lists of the best works of multi-year time periods”:

Using indices collectively covering the period since 1960, we document that the annual number of new albums passing various quality thresholds has remained roughly constant since Napster, is statistically indistinguishable from pre-Napster trends, and that album supply has not diverged from song supply since iTunes’ revival of the single format in 2003. We also document that the role of new artists in new recorded music products has not diminished since Napster. [emphasis added]

Waldfogel’s findings will unquestionably prove controversial in many circles.  And, to be sure, copyright policy may be based on considerations other that mere economic efficiency (e.g., John Locke’s labor theory or artists’ moral rights).  If Waldfogel’s findings are verified and generally accepted on their own terms, however, the economic policy implications seem clear:

It is easy to see that file sharing simply increases welfare. Producers lose, but their losses – when consumers steal things they used to pay for – are all transfers to consumers, who now enjoy greater surplus (the price they had formerly paid plus the former consumer surplus). In addition to the transfers from producers to consumers, file sharing also turns deadweight loss – circumstances in which consumers valued music above zero but below its price and therefore did not consume – into consumer surplus. In a purely static analysis, eliminating intellectual property rights benefits consumers more than it costs producers and is therefore beneficial for society.

2010 Census director on suburbanization of minorities

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Sociologist Robert M. Groves spoke earlier this week “at an Advertising Research Foundation event.” In his comments, Groves noted one of the major demographic trends in America: more minorities are now in the suburbs.

Of course, if Groves — with a Ph.D. in sociology and a long-time Michigan professor — were to put out a “for hire” sign for TV networks, a bidding war could heat up between Univision and Telemundo. The story of the 2010 Census, which could have been written in 2005 (or 1995, for that matter), is the boom in Hispanic America…

Last year left Groves well-armed with figures about the Hispanic population, such as the prevalence of those speaking Spanish at home and English elsewhere. And he has much to say about a dispersal trend in the Hispanic community, the departure from cities. In the Atlanta area, for example, the number of Hispanic residents spreading to the collar counties is soaring.

“The suburbanization of the minority population is a phenomenon over the past decade,” Groves said.

While the American suburbs have typically been seen as places where whites attempted to escape the city and minority populations (“white flight”), the number of minorities in the suburbs has been on the rise (read about this on a national scale here and in the Chicago region here and here).

The article goes on to consider how Groves might also be in demand as businesses look to utilize this kind of demographic knowledge:

Broadly, Groves has some cred if he were to become a network ambassador to Madison Avenue. At some level, he’s overseen a massive campaign — stretching from a Super Bowl spot to targeted marketing in 28 languages — as with the Census spent $300 million to $400 million in advertising last year.

As the Bureau sought to get more Americans to return their questionnaires, it figured that for every 1% increase it produced, that would save $85 million in the costs associated with knocking on doors later.

“The message got through and it changed behavior,” Groves said.

The director can also say he can manage a budget. The Bureau returned $1.6 billion to the government last year as it completed its work.

Before becoming director of the 2010 Census, Groves was well known in sociology for his work with surveys. This article suggests that he could parlay this Census experience plus his prior research into a lucrative corporate position.

Pivoting toward greater competition

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Ryan Singel over at Wired magazine writes about a new start-up called LawPivot that helps start-ups with their legal questions:

LawPivot’s solution is to create a Q&A site where startups can ask legal questions confidentially and then get recommended lawyers to answer the question, which can lead to the former hiring the latter.

While California-based startups can now ask three free questions a month, LawPivot will soon be charging companies $80 for each question. For lawyers, the benefit is being able to land new clients for themselves or their firms, and to build a reputation — though they don’t get paid to answer a question.

Despite potential ethical issues and haughty dismissals by certain blogs, this certainly is where the legal profession is heading.  In a globalized world with plenty of lawyers looking for work, more competition is inevitable.  Fees are going to go down.

McMansions are Republican homes?

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In a humor/satire column in the Huffington Post, McMansions are tied to Republicans:

A Pew survey finds President Obama is polling quite well against a “generic” Republican opponent, better than George W. Bush was against a “generic” Democrat in 2003. Forty-seven percent of respondents said they would like to see Obama reelected while 37 percent opted for a generic Republican candidate. HuffPost Hill couldn’t reach “generic” Republican, Pleated Q. Pants IV, at his McMansion in suburban Columbus for comment. We hear he was shopping at a big box store and thinking about national security.

This is an interesting mix of characteristics: the “generic” Republican candidate shops at a big box store (why not say Wal-Mart? Is Target too trendy?) in central Ohio and lives in a suburban McMansion. There may be some truth to some of this: Joel Kotkin argued after the 2010 election that Republicans won the suburban vote even as both parties for fighting for this demographic.

I have seen other cases where McMansions are tied to Republicans. What exactly about the McMansion is Republican: the size? The bad architecture? The sprawl? The suburban lifestyle? The three (or more) car garage? The big mortgage? The wealth that made the house purchase possible?

What would a Democratic characterization in the same vein look like? In terms of the housing unit, how about an urban loft or a refurbished rowhouse or brownstone, all in a gentrified, atmospheric, and trendy neighborhood?

Sociologist argues sexual revolution may have begun in the 1940s

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A recent study published in American Sociological Review suggests that the sexual revolution, typically attributed to the 1960s, may have begun earlier:

“When we refer to the sexual revolution, we typically refer to something that happened suddenly in the 1960s, that took place mainly in the U.S. or Western countries, and that lifted restrictions on all kinds of sexual interactions,” says [David] Frank. “None of these is entirely true.”

In a study published in the December issue of American Sociological Review, Frank and co-authors found that as early as the mid-1940s societal views of the role of sex began changing from a predominantly procreative activity to one focused on individual satisfaction and self-expression. Among the sexual revolution’s most widespread and enduring effects, they found, was the significant change in how sex crimes are classified and regulated around the world.

Using global data collected from 194 nation-states on sex crime laws from 1945 to 2005, they analyzed the effects of reconceptualization on sex crime regulation. They found that as societal models shifted to an individualistic focus, laws regulating sodomy and adultery – acts generally defined as consensual transactions among adults – became more relaxed. Laws regulating rape and child sexual abuse – crimes committed without individual consent – expanded in scope.

If Frank is right (and he is working with some interesting data), then it might change perceptions of the 1950s. This decade is often considered to be a sort of “golden era,” the time of Leave It To Beaver, Father Knows Best, and housewives taking care of the kids and home while the father in a coat and hat traveled to work. And the events of the 1960s seem to fit with this as there was a reaction against this pleasant but restrictive earlier decade.

But Frank suggests that the seeds of the 1960s were sown earlier. This would mean that the 1950s were not as homogeneous as they are commonly portrayed – the legal foundation was already laid for the more contentious 1960s. And it would be interesting to trace out this cultural process as the changes in these laws translated into changed attitudes and behaviors among the general public.

More on people living beneath Las Vegas

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I first ran into a story on people living under Las Vegas in The Sun (UK) two years ago. The most recent edition of Newsweek also briefly discusses this situation as part of a larger article about Las Vegas and the impact Celine Dion has had on the city:

At the south end of the Strip, near the iconic “Welcome to Fabulous Las Vegas” sign, a hidden concrete path leads into a 500-mile warren of wet, trash-strewn drainage pipes that function as an underground shelter for hundreds of the city’s most downtrodden. Several have been laid off from the same well-paid, benefits-packed service jobs that give Vegas its rep as a working-class paradise. The pipes are one of the few places police and hotel security don’t bother to tread, and since the recession, they’ve become increasingly populated, according to Matthew O’Brien, author of a 2007 book about the tunnels, Beneath the Neon.

Life here is spare and dangerous. Aside from floods that can fill the space in minutes, there is ever-present crime. Jody Alger, 48, an unemployed casino waitress, guards her tunnel with a BB gun. Another camp has two makeshift barricades at its entrance; inside, its 32-year-old inhabitant huddles on an old bed with a flashlight strapped to his head. In a nearby tunnel, John Tondee sleeps on a sagging leather couch that he found in a Dumpster. His clothes are in a messy pile, and his entertainment is a guitar with a broken string, which he uses for playing country gospel. “I’m at the point of coming out of here,” he says. “I’ve had enough.” Tondee says he’s a former maintenance worker who lost his job a year ago and couldn’t afford to pay the $675 in rent. “I’ll do whatever it takes to survive,” he says. “I’ll go around and wash windows.” At night, he used to dress in drag and walk down the Strip. But someone came into the tunnel and stole his 16 wigs. Now he has only one head of fake black curls left.

These two paragraphs are meant to set up a comparison between the glitzy and popular Celine Dion shows at Caesar’s Palace and the desperate times some residents are facing.

But from what I can gather, people living underneath a city is not a limited phenomenon perhaps tied to difficult economic times. The space underneath cities can be easier to access than people might realize: this story about Paris suggests all sorts of people end up exploring this area (though many of them are on tours of the Paris Catacombs). And the 1995 book The Mole People: Life in the Tunnels Beneath New York City, which I first read for my undergraduate Introduction to Sociology class, is a fascinating look at how a number of people have carved out a life in a space that most would avoid.

Declining number of children in San Francisco

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The City of San Francisco is facing an interesting problem: a declining population of children.

Families that remain in The City are bucking the trend that has plagued San Francisco for years as the number of children — defined as people up to 17 years old — has dropped from 181,532 in 1960 to 107,524 today, according to the latest U.S. Census Bureau figures. The 2000 census counted 112,802 youths.

The decrease is disappointing news for city officials, who have attempted to counter the family-flight trend by creating more affordable housing, improving schools and cutting costs, such as a college savings account for kindergarten enrollees.

What is interesting in this article is that it is not said why having children in a city is so desirable. What if a city decided that it didn’t really want to attract families or children – would this be acceptable to Americans? Children cost money, not only to families but particularly due to schools and other city services.

I could think of a few possible reasons why not having children in a city would be a problem: this means that younger families who work in certain jobs and pay taxes will not be present, a lack of children suggests the city is not a “family-friendly” place which would cut down on tourist money, or children might be considered a symbol or sign of vitality and passing down the values of the city down to a new generation.

I wish the article said more about what San Francisco officials, including more than the ones involved in children-centered agencies, really thought about this issue.

If President Obama kicked teams out of the NCAA tournament for low graduation rates

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The discussion over the graduation rates of men’s basketball players on NCAA tournament teams has grown in recent years. One columnist wondered what President Obama might say if he addressed the issue:

“While nine of every 10 white players graduate on the top-32-seeded men’s teams, only five of every 10 black players graduate. As an African American, I am personally outraged that 21 of the 68 men’s teams have black player graduation rates ranging from 44 percent down to zero.

“Thus, beginning today, I will do my bracket with this new stipulation: I will not write in your team if either your team or black player graduation rate is under 50 percent.

“This decision is not an easy one to make for a basketball purist. It leaves out nearly a third of the teams, including prestigious programs that account for 10 of the last 21 titles. It is with regret that I will leave blank spots for Syracuse, Indiana State, Missouri, Southern Cal, Michigan State, Tennessee, Florida, Nevada-Las Vegas, UC-Santa Barbara, Michigan, Morehead State, Kentucky, Georgia, Temple, Connecticut, Alabama-Birmingham, Texas, Washington, Arizona, Kansas State, and Akron…”

If Education Secretary Arne Duncan already made a similar suggestion, why not the President, who is an avid basketball fan and fills out men’s and women’s brackets on TV?

This is a complex issue that the NCAA doesn’t seem to want to talk about. Instead, they would rather run commercials (one example here) saying that “most [college athletes] go pro in something other than sports.” This may be true in many sports but there are racial gaps in a number of schools in both men’s basketball and football (read about troubles at Auburn here), the major revenue-generating sports.

Chicago suburbs consider more roundabouts

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The roundabout has had a sort of renaissance in American traffic and road design in recent years. While many Americans might consider roundabouts to be European, there are more being built in the Chicago suburbs:

At least 10 roundabouts have recently been considered or launched in the Chicago area. The intersections consist of a center island surrounded by a one-way lane of traffic where drivers yield to circling cars without the instruction of stop signs or traffic signals.

South Holland in 2008 was one of the first in the area to build a modern roundabout. Another was finished in Lincolnshire in November. Kane County is planning one west of Elgin. Another proposal was recently unveiled for Chicago’s West Lakeview neighborhood, and the Illinois Department of Transportation is looking to convert the despised Cumberland Circle in Des Plaines into a modern roundabout as well.

Because the design forces vehicles to slow down and eliminates left-hand turns, the possibility for multicar accidents is much lower than at a traditional intersection, safety experts say.

In addition to the safety improvements, I recall reading that roundabouts also accommodate more traffic. Instead of having cars stop (at either stop signs or traffic lights), there is more continuous flow.

It is also interesting to read how suburban residents seem afraid of these roundabouts: how does one drive through them? Perhaps suburban drivers all have seen how Clark Griswold (played by Chevy Chase) got stuck in a London roundabout for hours in European Vacation. At least at the beginning, this unfamiliarity may contribute to the reduction of accidents: people have to slow down in order to figure out their next course of action.

In the long run, this is a good reminder that driving habits and behavior are very much conditioned by what we are used to. This reminds of Hans Monderman, the Dutch traffic engineer, who went to great lengths to get drivers to readjust their behavior (and the American way of just adding traffic signs doesn’t help – read about it in Traffic).

(As a side note: speaking from experience with a roundabout in northern Indiana that I drove through for several years, it is pretty easy.)