Virginia Postrel on Kelo

Virginia Postrel warns in the aftermath of Kelo:

Kelo is the logical result of the argument that spillovers of any sort--in this case, the positive effects of business development--constitute externalities, and that externalities justify government intervention. What's wrong with that argument? If it's fine for air pollution (as I believe it is), why doesn't it apply to refusing to sell your house to a business that would enrich the local area? Why doesn't it apply to offensive speech?

These are not easy questions, and they need to be asked. As political scientist Aaron Wildavsky warned before his untimely death in 1993, "externality" (and even "pollution") is an elastic, socially constructed concept whose application depends on what you like or dislike. If spillovers are all it takes to justify government action, liberalism's most basic freedoms--from freedom of speech to private property--cannot survive.

Dynamist