Robert H. Nelson died suddenly last December, while he was in Helsinki, Finland, to give a talk. Nelson was a respected—and unconventional—economist. In preparing a memorial essay about him, I read through many of his writings and saw how an economist can use history to gain insight. In this short space I’d like to concentrate on just one topic—federal land management in the United States.
In the early 1980s Nelson worked for the Interior Department’s Office of Policy Analysis (otherwise known as the “Office of Smart Guys,” according to my husband, who directed the office at the time). Part of his research involved reviewing the history of federal land ownership.
He made two important discoveries.
First, he discovered the utter failure of federal “scientific management” of land.[1] The federal government owns large swaths of land in the West because the Progressive movement of the late nineteenth century halted its dispersal to the private sector. Suspicious of big companies (the trust-busting Theodore Roosevelt was a hero), Progressives thought that big projects like managing land should be in the hands of the federal government, which would hire experts and leave them free to manage “scientifically” without political interference.
For the most part, it didn’t work.