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Tag Archives: Nantucket

Affecting the cost of animal feed and lowering the amount of milk from cows, the drought is pushing up milk prices.

Located 30 miles from Cape Cod, Massachusetts, the island of Nantucket has no traffic lights. Instead, drivers respond to stop signs, rotaries and courtesy. More often than not, if a walker or a biker needs to cross the street, cars stop. When someone is making a left turn or leaving a parking lot, cars wait.

Nantucket’s lack of traffic lights started me thinking about Nobel laureate Elinor Ostrom who researched how we abuse the free goods that we share. Called the tragedy of the commons, in a communal pasture, we overgraze our cows. In a workplace refrigerator, we create a mess. Dr. Ostrom believed though, that when people care about their common pasture or refrigerator, the tragedy of the commons becomes a solvable problem of the commons.

Telling about a communal pasture in Switzerland, Dr. Ostrom explained how farmers avoided overgrazing by creating voluntary rules. “What we have ignored,” she said after her Nobel Prize was announced, “is what citizens can do . . . as opposed to just having someone in Washington or at a far, far distance make a rule.”

Perhaps Dr. Ostrom would have seen another example of her work in Nantucket. There have been no meetings in Nantucket for everyone to discuss our commonly “owned” roads and yet abuse is rare. Is it because we have a fundamental drive to cooperate that sometimes overrides our short-term self-interest?

Elinor Ostrom died on June 12. As the first woman to receive the Nobel Prize in economics, a political scientist, and someone who paused during a radio interview to go to her backyard to observe a beautiful deer, she sounds fascinating. You might want to read more about her work and life here. And, in a classic 1968 article, Garrett Hardin describes the tragedy if the commons.

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Located 30 miles from Cape Cod, Massachusetts, the island of Nantucket has no traffic lights. Instead, drivers respond to stop signs, rotaries, and courtesy. More often than not, if a pedestrian, a walker, or a biker needs to cross the street, cars stop. When someone is making a left turn or leaving a parking lot on a busy street, cars stop. And, drivers usually smile and street crossers wave thank you.

Nantucket’s lack of lights started me thinking about Adam Smith. Economic thinker (there were no economists in 1776) Adam Smith suggested that less government was better than more government. Smith believed that human nature was so diverse and policy consequences so unpredictable, that, although imperfect, less government could ultimately lead to more virtuous human behavior. For example, told their taxes will be increased to help the less fortunate, certain people express resentment. And yet voluntarily giving the same amount to charity can evoke pride and generosity.

What are the implications for our society if what we do voluntarily makes us feel better and can make us more virtuous than when we are forced to do something?

The Economic Lesson

In his first major book, The Theory of Moral Sentiments (1759), Adam Smith sought to describe a just society. Displaying a thorough grasp of human nature, he said that the path to a just society started with profit seeking businesses. Building from his first book, he then wrote The Wealth of Nations (1776), through which his analysis brought order and insight to the seemingly chaotic market system that was spreading through Europe.

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