I've been in class for a good part of the day plus I prepped for and held my afternoon Sports Econ course. Things are busy, but it's a good kind of busy. It doesn't leave much time to blog and I hope my thoughts below aren't too disjointed.
I've been thinking about Economic Freedom Indices put out by places like the Heritage Foundation and Pacific Research Institute and it seems to me that an integral part of any kind of "free economy" has to have a society/government whose members deeply respect private property rights.
One of the things that needs to exist if an easy exchange is going to take place is that the exchangers needs to know who owns what and how easily property rights can get exchanged. For example, when I visit the local drug store to buy a soda, that exchange is really an exchange of property rights to that soda. When I visit the store, there is no question who owns the soda I am about to buy. When I leave the store, there is no question who owns the soda. Similar things can be said about an exchange involving a washing machine or a new automobile. Although the exchange is more involved, a similar thing can be said about houses.
John Palmer sent me a link to this post at Western Standard by Bob Wood on the necessary activites that an ideal government would undertake:
- secure rights of personal property, the better to encourage saving and investment;
- secure rights of personal liberty …against both the abuses of tyranny and … crime and corruption;
- enforce rights of contract ….
- provide stable government … governed by publicly known rules …
- provide responsive government …
- provide honest government … (with) no rents to favor and position
- provide moderate, efficient, ungreedy government … to hold taxes down (and) reduce the government’s claim on the social surplus …”
My reading is that Bob says that a good government will have members who support private property rights and will provide a stable basis for voluntary exchange: I know what you own and you know what I own and whoever has the right to a piece of property will get to keep it and use it as he/she sees fit. Kelo supporters would do well to think about these 7 activities.