Lure of the West

We recently returned from the 2004 general meeting of the Mont Pèlerin Society. This organization was founded in 1947 by intellectuals committed to resisting tyranny of the left and the right. They built the intellectual analogues to bullets and bombs. Their vision was realized on Nov. 10, 1989, when the Berlin Wall fell. Three of the founders won Nobel Prizes. Four newer members have been likewise rewarded.

By John Baden

Foundation for Research on Economics and the Environment
http://www.free-eco.org/

Bozeman, Mont

http://www.free-eco.org/articleDisplay.php?id=413

FREE hosted this meeting of 400 individuals from 36 nations. Most members are economists, jurists, journalists and business leaders. Some, including those from Venezuela and Africa, live under threats to liberty and life.

During the flight home I finished a book by Rich Karlgaard, the publisher of Forbes magazine http://www.forbes.com . His book is "Life 2.0: How People Across America Are Transforming Their Lives by Finding the Where of Their Happiness." http://www.amazon.com/exec/obidos/ASIN/1400046076/qid=1094062492/sr=ka-1/ref=pd_ka_1/002-2665592-7750409 Several dinner conversations at the society meeting illustrated the book’s relevance to the Rockies.

This work helps explain the attractiveness of living in Bozeman, and why we are experiencing such a boom. The forces are gravitational, and surely will increase in strength. Here’s the argument.

First, folks look here and see a mix of positive values. Obviously income hardly trumps. Rather, people consider school quality, commuting time, housing costs, environmental amenities and a sense of community. Historically, Bozeman’s remote location was a huge disadvantage.

Technology – FedEx, jet planes, the Internet, and satellite communication – has dramatically reduced this problem. Further, with our increased wealth comes enhanced appreciation for environmental amenities. We have them — and work to protect and enhance them. This, plus educational and cultural opportunities, is a powerful magnet to those with high human capital.

Concurrently, the multiple costs of living a good life in Boston, New York or San Francisco have exploded. At one society dinner a New York editor told me he may lose one of his best young hires. Why? This 30-year-old has just had his first child.

"He just can’t live in Manhattan on the $130,000 a year we pay. And I can’t pay everyone $300,000."

Obviously, this writer could live very well in Manhattan, Mont., and telecommute for $80,000. Increasingly, folks with the talents the editor respects do just that.

One of my friends, a federal judge in Chicago, recently bought a working ranch near Red Lodge for less than a deluxe condo near her court. Since she handles high-profile terrorist cases, the federal marshals responsible for her safety are worried. She however, is happy and healthy in Montana. And she feels safer here.

Here are personal examples. Our son teaches economics at Tufts University. Although his research specialty includes urban housing values, he couldn’t find a suitable modest house in the Boston area for under $400,000. And by Bozeman standards, the 1,700-square-foot home (built in 1927) he bought is modest indeed — and his lot is a quarter-acre. In contrast, we have faculty friends who moved here from the New York area and bought a beautiful 5,000-square-foot home with a creek and two-plus acres for only a fraction more. Their commute is trivial. Our son’s is a daily hassle.

A couple from Wisconsin just purchased a 100-plus acre home site within two miles of our place near Gallatin Gateway. The price was well over $1 million. Their purchase indicates the attractiveness of our area for those of means.

The implications are clear. On many dimensions, folks find this an increasingly fine place to live, especially for those whose income is independent of location. And ever more will exercise this option, especially if America experiences another 9/11 event.

The transformation Karlgaard describes will have profound implications throughout our region, some favorable, others problematic, at best. First the improvements. We will have more good restaurants, book stores, sophisticated and better medical care and high culture. Like attracts like, and the market process responds.

But not all good things go together. Those essential to a solid, well-functioning community will be squeezed: teachers, firefighters and nurses. As towns such as ours become gentrified and property taxes rise, many solid citizens are disadvantaged and displaced. This is a serious problem. No community has found a solution, but I’m still looking.
John A. Baden is chairman of the Foundation for Research on Economics and the Environment (FREE) and Gallatin Writers, both based in Bozeman, MT.