Tuesday, October 20, 2015

How did property rights save China, the Pilgrims, and Vietnam?

Good short video on the incentive aligning effects of private property at our friends at MarginalRevolution University

2 comments:

  1. There is a similar lesson from Peruvian history. During the 50's and 60's the sugar industry was the largest driver of economic growth in Peru. In 1968, a dictatorial government expropriated large sugar farms from their original wealthy owners and gave the land to sugar worker co-ops. In less than 15 years, the shared-ownership model proved wrong. Seven out of 12 sugar co-ops went bankrupt and their accumulated debt by 1983 was more than 300 million dollars.

    ReplyDelete
  2. I am repeatedly amazed whenever I read articles that quantify (through seemingly high-intellectual wording) the most basic premises and lessons our parents taught us growing up. Did anyone NOT hear words to the effect, "If you give a child a bicycle, they will not appreciate its value as much as a child who worked, saved, and purchased it them self"?
    This idea is also the foundation of the U.S. strategy with respect to "nation building" activities in the U.S. Army. Our recent operations in Afghanistan and Iraq contained a great deal of education for those nations' leaders in the area of private ownership. Such an idea is very foreign to a large number of people and societies around the globe. However, it is simply undeniable that people with an incentive try harder and produce more than those who wait for the work-product of others to be delivered to their doorstep.

    ReplyDelete