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How smashing the NIMBYs created modern capitalism

This piece from Works in Progress makes a counterintuitive claim that reshapes how we view modern economic success: it argues that the Industrial Revolution was not sparked by new inventions alone, but by a political revolution that dismantled the very property rights aristocrats held most dear. The article's distinctive power lies in its refusal to treat the Glorious Revolution as merely a story of constitutional monarchy; instead, it frames the event as a pragmatic, legislative overhaul that solved the 'vetocracy' of fragmented land ownership. For busy professionals navigating today's gridlock on infrastructure and housing, this historical precedent offers a startling blueprint for how to unlock growth without triggering civil war.

The Legislative Engine

The core argument rests on a shift in legislative behavior rather than ideology. Works in Progress reports that while the Glorious Revolution is remembered for subordinating the monarch to Parliament, its true economic impact was "dramatically increased legislative productivity." Before 1688, sessions were short and erratic; afterwards, they became annual marathons where lawmakers could tackle complex property disputes. The piece notes that "between 1688 and 1724, the average [number of acts] increased to 50–75 per session," eventually climbing to over 200.

How smashing the NIMBYs created modern capitalism

This surge in activity was not abstract; it was a targeted assault on the inefficiencies of the open-field system. The article explains that under traditional inheritance laws and fragmented strips of land, "anyone who wanted to sow a new crop would have to duplicate the work already shared by those sowing other crops," making innovation nearly impossible. By shifting the threshold for change from unanimous consent to supermajority support, Parliament broke the paralysis caused by single holdouts.

"The landowners, precisely because they were empowered, did something their continental counterparts could not: They dismantled the fossilized property arrangements that had blocked development elsewhere."

This framing is compelling because it inverts the usual narrative of class interest. Typically, we expect a ruling class to entrench its privileges. Here, Works in Progress suggests that English landowners realized their long-term wealth depended on fluidity rather than rigidity. However, critics might note that this narrative glosses over the human cost of enclosure, where smallholders were often displaced without adequate compensation, turning 'consent' into a mathematical exercise that ignored the vulnerable.

Breaking the Dead Hand of Inheritance

The commentary then pivots to the legal mechanisms that kept capital frozen. The piece identifies "the dead hand of entail" and strict settlements as major barriers, designed by aristocrats to preserve estates in perpetuity but which ultimately prevented investment in improvements. Works in Progress argues that these devices guaranteed payments to family members while ensuring that "spendthrift heirs might sell, mismanage, or dismember them," creating a system where no one had the authority to make necessary changes.

By rewriting these inheritance rules, the executive branch and Parliament allowed land to be consolidated into rational units capable of supporting modern agriculture. The article draws a sharp contrast with continental Europe, noting that in France, "the Parlement of Paris refused to register [reform] edicts" because monarchs depended on aristocratic support that could not be bought off. In England, the political settlement gave landowners enough confidence to trade their absolute control for a system that allowed them to profit from efficiency.

The argument effectively links this historical moment to modern infrastructure challenges. Just as 18th-century England needed to reorganize fields to adopt the horse plough and crop rotation, today's developed nations struggle with "fragmented political and property rights" that lead to a "vetocracy." The piece suggests that the solution lies not in top-down mandates but in creating legislative pathways where supermajorities can override minority vetoes on public goods.

"Fragmented ownership of farmland discouraged the adoption of new crops and rotations... Roads were bad because nobody took responsibility for them."

This observation resonates deeply with contemporary debates on housing and transit, where a single neighbor or local council can block projects that benefit thousands. The historical parallel to the Caen Hill Locks—where engineering triumph was only possible after property rights were clarified—adds weight to the idea that physical progress is impossible without legal clarity.

A Blueprint for Modern Reform?

Works in Progress concludes by asking if the West can "foment a Glorious Revolution of our own." The article acknowledges that while the English solution was unique, similar successes occurred elsewhere when property rights were restructured, such as in post-WWII Germany or Stolypin's reforms in Russia. It highlights that "German land was not consolidated until after the Second World War... and wheat yields tripled," proving that the principle is transferable even if the political context differs.

The piece's strongest move is its refusal to romanticize the process. It admits that enclosure was "sometimes acrimonious" and that rights were restructured against the will of minorities. Yet, it maintains that on balance, the reforms made land more productive and increased holdings for nearly everyone involved. This pragmatic acceptance of short-term friction for long-term gain is a difficult pill to swallow in an era obsessed with consensus.

"Multiple scleroses... Fragmented political and property rights have again become one of the Western world's biggest problems, leading to the 'vetocracy' that paralyzes many developed countries."

The metaphor of 'multiple sclerosis' effectively captures the paralysis of modern governance, where every part of the system is connected but unable to move. While the article offers a powerful historical case study, it leaves the reader with an unresolved tension: how to replicate this legislative confidence in a polarized democracy where trust in institutions is at a historic low.

Bottom Line

The strongest part of this argument is its reframing of property rights not as absolute individual liberties but as dynamic systems that must be periodically re-engineered to prevent economic stagnation. Its biggest vulnerability, however, is the assumption that modern stakeholders will voluntarily cede veto power for a supermajority rule without the same level of social cohesion or legitimacy that English landowners enjoyed in 1689. The reader should watch for how current infrastructure bills attempt to navigate this exact tension between local consent and national necessity.

Deep Dives

Explore these related deep dives:

  • The Wealth of Nations Amazon · Better World Books by Adam Smith

    The foundational text of modern economics and free market theory.

  • Glorious Revolution

    Directly referenced in the article's discussion of How smashing the NIMBYs created modern capitalism

  • Macadam

    Directly referenced in the article's discussion of How smashing the NIMBYs created modern capitalism

  • Caen Hill Locks

    As a feat of canal engineering, this structure illustrates the complex, capital-intensive projects that were previously impossible due to the 'vetocracy' and fragmented land ownership the article critiques.

Sources

How smashing the NIMBYs created modern capitalism

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Industrial modernity was invented in the English midlands around the end of the eighteenth century, kicking off an unprecedented global rise in living standards that continues to this day. But what made this revolution possible was a lesser-known political revolution that took place in the previous century: a period known in English history as the Glorious Revolution.

Today, the Glorious Revolution is remembered for having introduced the system of constitutional monarchy, which subordinated the power of the monarch to Parliament. What is really interesting, though, is how Parliament used its new power: to untangle excessively strong and complex property rights, making it possible for the first time for sustained investments to take place in infrastructure and agriculture across England. And unlike in most other political revolutions, this happened almost entirely peacefully and with the consent of the people whose rights were being redrawn.

Fragmented political and property rights have again become one of the Western world’s biggest problems, leading to the ‘vetocracy’ that paralyzes many developed countries. Could we foment a Glorious Revolution of our own?

Multiple scleroses.

Seventeenth-century Europe was economically stagnant. Despite intellectual advances like the creation of patent systems, the flourishing of mathematical schools, and the founding of learned societies like the German Leopoldina and France’s Académie des Sciences, the physical world saw only plodding progress.

Agriculture was practically the only game in town. Almost everyone lived in small rural settlements: fewer than ten percent of Europeans lived in towns of more than 5,000 people in 1500. By 1700 this had grown to just 12 percent; and by 1800, to 15 percent. In France, Europe’s most populous country, nearly 70 percent of the workforce worked in agriculture between 1695 and 1790. Germany was similar, and Scandinavia, Russia, Eastern Europe, Southern Italy and Spain were possibly more agrarian.

The default was for countries to continue for centuries with virtually no growth. Spanish output per capita was flat for half a millenium between 1300 and 1800. Other areas saw temporary bursts of growth, followed by stagnation or reversion: Swedish and Portuguese incomes were lower in 1800 than in 1550, and the Italian efflorescence during the Renaissance was followed by steady decline for centuries. Even the Dutch golden age of ...