Posts Tagged myth of progress

Selling My Townhome

I’ve written before about the cultural Myth of Progress and the “expansionist drive” that supports it. Another way of expressing these ideas is to simply say that, in our culture, enough is never enough.

That idea has been coming to mind as I move forward on the process of selling my townhome in Georgia. I bought the home in 2004, which, if you’ve been paying attention to historical housing prices, just made you cringe. That was, literally, just before the bubble burst. Since the bubble hadn’t popped yet, you could still get an 80/20 mortgage with zero down payment and no PMI, which is exactly how I was able to move from a 2-bedroom rental apartment into an 1800-square-foot townhome, basically at the drop of a hat. One day, I woke up and decided it was time to own instead of rent, and a few months later, I had moved into my new home. Okay, it wasn’t exactly that simple, but closer than you might think.

I paid a total of $167,000 for the home. Within the next few years, I would hear on the news about housing prices tanking, but I didn’t think much about it, because I had no immediate plans to sell. My time horizon for moving was 5-10 years out, and I figured I’d deal with the situation when the time came.

Of course, the housing market didn’t improve. In June of 2009, I moved into a group-living situation with some friends and decided to rent the townhome out. By July of 2010, I had bought a home in Knoxville and relocated entirely. The housing market was a little better in 2010 than they had been in 2009 (at least in part due to the tax credit, which I didn’t know at the time), so I decided not to rent again, but to sell.

Lots of financial advisers would tell me that this is the absolute worst time to sell. The housing market in general is still depressed compared to 2004. There are three to five units for sale on my street, and there have been for the last three years. There have been two sales on my street in that time period, in the range of $140k to $150k. At least one of the units for sale is a foreclosure. Many units are empty, their owners apparently still continuing to pay, since no foreclosure signs have shown up, but it doesn’t bode well for the neighborhood. The conventional advice for this situation is to ride it out and wait for the housing market to rebound.

Rebound to what? Rebound to the point where the home can be sold for at least as much as you paid for it, of course. And that’s where we come to the Myth of Progress. Everything is seen through the lens of profit and loss, except the scale is distorted. Lack of profit counts as a loss and profit is barely seen as breaking even.

Consider this: thanks to a generous contract on a book that I wrote, I was able to dump a bunch of money into the mortgage on the townhome. I put the money into the mortgage, instead of some other investment, at least partly in preparation for this very situation. The principle on the loan is currently about $120k, so theoretically, I could sell the house for as little as $120k, plus my agent’s commission, and walk away clean.

Most people would be horrified at that prospect. If I bought at $167k, sold at $120k, they would count that as a $47,000 loss. The only factor that would come to their mind would be the starting number and the ending number, and the Myth of Progress says that the ending number must be higher than the starting number or you have failed. But here’s how I think of it: if I had continued renting my apartment, I would have paid about $1,000 a month for five years. That’s $60,000 to live in a 2-bedroom apartment. Instead, I paid $47,000, or $783 a month ($885 if you add in the HOA dues) to live in a beautiful townhome, about twice the size of the apartment, that I loved dearly. And that’s not even counting the approximately $5k to $10k in interest that I was able to write off on my taxes! Sounds like a bargain to me.

Of course, the speculators will say that if I hold onto the townhome, the market will eventually recover, and I will be able to sell it for more. By my own logic, selling for $150k might count as a profit, even if it’s numerically a loss. That’s true, but making a profit isn’t my primary goal. I’m not interested in wringing the maximum amount out of every single transaction. I just want to have “enough,” and I think that’s where the Myth of Progress most leads us astray. It makes us view every transaction through the lens of maximalization. The question is always whether you have gotten everything you possibly could, not whether you got “enough” to satisfy yourself.

For me, “breaking even” and walking away from the townhome clean would be “enough,” and any cash I get out on top of that would be “profit.”

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Notice Your Culture

I talk about things like the Myth of Progress, and I wonder whether it all sounds very conceptual to you who aren’t inside my head. But I see examples of what I’m talking about all around me, and I thought it might be time to start pointing them out, in a series I’ll call “Notice Your Culture.” Issa wrote about this in a post she titled, “Step One: Notice.”

The first one comes from Engadget’s review of the Motorola Droid X phone:

Motorola’s success as a competitive phone manufacturer is ultimately going to depend not on its ability to produce a single hit, but to produce a never-ending string of hits, each better than the one before it.

This is an example of the Myth of Progress in action. Success or progress is defined as continual improvement and expansion. Everything must be up, up, up and out, out, out at all time. Recession or contraction is viewed as failure or death, not a natural and essential part of any healthy system.

The remaining examples will come from a copy of The Economist magazine, which unfortunately means that there won’t be links to the articles. You’ll just have to take my word for it.

An ad for Shell Oil reads:

Japan, like many other countries, needs a reliable source of energy. Not just for tonight’s bowl of warming noodles, but for years to come. Let’s build a better energy future.

The first question I had when I read that was, “Many other countries? Like whom?” Which countries need a reliable source of energy, specifically? Countries who are outstripping their available energy reserves, that’s who. People who are living sustainably off of their landbase don’t need a reliable source of energy; they have one! Their landbase! The only reason that Japan is not able to meet its own energy needs is because its population and the lifestyle they expect has outgrown the energy that its landbase is capable of providing. This is a hallmark of civilization. Societies grow to the point where they must import energy and other resources from outside of their landbase, making them inherently unsustainable.

What will happen in years to come, according to this ad? Future generations will need energy from afar? Notice how the tone of the ad is not, “Future generations will have security because they will have reduced their population and lifestyle to fit within the energy that can be provided by their landbase.” Nope. Contraction and recession is not an option. Consuming less is not an option. This is the expansionist drive and the Myth of Progress at work.

An article about the Deepwater Horizon disaster reads:

Meanwhile, the Obama administration appealed against a judge’s decision to overturn its moratorium on drilling in deep waters, which was introduced after the explosion on the rig that caused the disaster in the gulf. Several oil-services companies and politicians in Louisiana have challenged the drilling ban on the grounds that it is arbitrary and has a negative economic impact on the region.

This makes me think of several of Derrick Jensen’s Premises:

Premise Nineteen: The culture’s problem lies above all in the belief that controlling and abusing the natural world is justifiable.

Premise Twenty: Within this culture, economics—not community well-being, not morals, not ethics, not justice, not life itself—drives social decisions.

If we did not believe that controlling and abusing the natural world is justifiable, then we would not even consider continuing drilling in the Gulf, given the obvious risks. But economics is the driving force, and anything that causes economic harm is resisted, no matter what else might come of it.

An article about China’s monetary policy reads:

China’s slightly freer currency would be all the more welcome if it spurred moves to boost consumption.

This is the Myth of Progress again. Pardon me if I beat that drum all the time; it’s a big one. The premise of the headline is that anything that boosts consumption is good. But think about it. If increasing consumption is always good, what is the inevitable outcome? Is it physically possible to always consume more? And why isn’t anyone ever asking whether the level of consumption that we are currently at is appropriate?

An article about an industrial accident in India reads:

The plumes of poison gas that leaked from the plant killed thousands within minutes. Three years later, Union Carbide agreed to pay the Indian government $470m in compensation, far short of an original $3 billion-wort of claims. But it was not until this year, on June 7th, that a court finally ruled on culpability for the accident. A district court in Bhopal convicted seven former Union Carbide executives of causing death by negligence and sentenced them each to two years in jail.

The article goes on to say that as many as 25,000 to 100,000 people may have ultimately died from the leak. Although there is public outcry in India over the lenience of the sentences, nothing has yet been changed, and the convicted people have not yet been extradited from America.

This is an example of Jensen’s Premises:

Premise Four: Civilization is based on a clearly defined and widely accepted yet often unarticulated hierarchy. Violence done by those higher on the hierarchy to those lower is nearly always invisible, that is, unnoticed. When it is noticed, it is fully rationalized. Violence done by those lower on the hierarchy to those higher is unthinkable, and when it does occur is regarded with shock, horror, and the fetishization of the victims.

Premise Five: The property of those higher on the hierarchy is more valuable than the lives of those below. It is acceptable for those above to increase the amount of property they control—in everyday language, to make money—by destroying or taking the lives of those below. This is called production. If those below damage the property of those above, those above may kill or otherwise destroy the lives of those below. This is called justice.

The article closes with a paragraph that hearkens back to the Shell Oil comment that opened this post.

Energy-starved, India wants American companies to help expand its nuclear power, but they are deterred by the lack of protection from big compensation claims.

Why is India energy-starved? Is it because its capability to generate energy has been reduced? No. It is producing more energy today than it ever has. It is because its hunger for energy has outgrown its ability to produce it. This is a hallmark of civilization, and is one reason why civilization is unsustainable. The irony of India’s situation is that it is simultaneously civilized enough to need energy, and primitive enough to be abused by those who are higher than it in the hierarchy of violence. Why can’t India have as much energy as it needs without having to accept violence from the American (or other) companies that provide the energy?

Premise Three: Our way of living—industrial civilization—is based on, requires, and would collapse very quickly without persistent and widespread violence.

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