“The organization of economic activity through voluntary exchange presumes that we have provided, through government, for the maintenance of law and order to prevent coercion of one individual by another, the enforcement of contracts voluntarily entered into, the definition of the meaning of property rights, the interpretation and enforcement of such rights, and the provision of a monetary framework.”

— Milton Friedman

Source: (1962), Ch. 2 The Role of Government in a Free Society, p. 27

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Milton Friedman 158

American economist, statistician, and writer 1912–2006

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“A government which maintained law and order, defined property rights, served as a means whereby we could modify property rights and other rules of the economic game, adjudicated disputes about the interpretation of the rules, enforced contracts, promoted competition, provided a monetary framework, engaged in activities to counter technical monopolies and to overcome neighborhood effects widely regarded as sufficiently important to justify government intervention, and which supplemented private charity and the private family in protecting the irresponsible, whether madman or child—such a government would clearly have important functions to perform. The consistent liberal is not an anarchist.”

Milton Friedman (1912–2006) American economist, statistician, and writer

Source: (1962), Ch. 2 The Role of Government in a Free Society, p. 34

“The idea of natural order, in effect, masks the state’s role. … Robert Hale … demonstrated the extent to which the distribution of income and wealth is the product of legal rules we choose to impose. Hale trained our attention on the foundational rules of property and contract law, showing how free, voluntary, compensated exchange is in fact a product of the legal coercion that the government establishes through its role in defining property rights.”

Bernard Harcourt (1963) American academic

Source: The Illusion of Free Markets: Punishment and the Myth of Natural Order (2011), p. 32

“Property rights, governance structures and rules of exchange are arenas in which modern states establish rules for economic actors. States provide stable and reliable conditions under which firms organize, compete, cooperate and exchange. The enforcement of the laws affects what conceptions of control can produce stable markets. There are political contests over the content of laws, their applicability to given firms and markets, and the extent and direction of state intervention into economy. Such laws are never neutral. They favor certain groups of firms.”

Neil Fligstein (1951) American sociologist

Source: Markets as politics: A political-cultural approach to market institutions, 1996, p. 657

“Market exchange requires a combination of both state and customary institutions. For any developed system of commodity exchange there must be a legal system inscribing and protecting rights to individual or corporate property. There must be a body of contract law with criteria for distinguishing between voluntary and involuntary transfers of goods and services, and courts to adjudicate in such matters. However, the evolution of law is not simply a matter of legislative construction; a great deal of law grows out of custom and precedent. Property and contract law are not exceptions. Consequently, the existence of property and exchange is tied up with a number of legal and other institutions, e. g. government, political system, and common societal values.”

Geoffrey Hodgson (1946) British economist

Source: Economics and Institutions, 1988, p. 150

“The effectiveness of authority as a means of control depends first of all upon the ability to enforce it through the use of punishment. In the two organizations which have been the models for classical organization theory, the situation with respect to enforcement is clear. In the military, authority is enforceable through the court-martial, with the death penalty as the extreme form of punishment. In the Church, excommunication represents the psychological equivalent of the death penalty.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 27 (in 2006 edition)

“If there has been any crime, it must be prosecuted. If there has been any property of the United States illegally transferred or leased, it must be recovered…. I propose to employ special counsel of high rank drawn from both political parties to bring such actions for the enforcement of the law. Counsel will be instructed to prosecute these cases in the courts so that if there is any guilt it will be punished; if there is any civil liability it will be enforced; if there is any fraud it will be revealed; and if there are any contracts which are illegal they will be canceled. Every law will be enforced. And every right of the people and the Government will be protected.”

Calvin Coolidge (1872–1933) American politician, 30th president of the United States (in office from 1923 to 1929)

Calvin Coolidge, statement on the Teapot Dome scandal, The New York Times (January 27, 1924), p. 1. Quoted by Senator Edward Martin, address to the Mifflin County Republican Committee, Lewistown, Pennsylvania (January 25, 1952), Congressional Record (January 28, 1952), vol. 98, Appendix, p. A400.
1920s

“Economic growth occurs if output grows faster than population. Given the described assumptions about the way people behave, economic growth will occur if property rights make it worthwhile to undertake socially productive activity. The creating, specifying and enacting of such property rights are costly… As the potential grows for private gains to exceed transaction costs, efforts will be made to establish such property rights. Governments take over the protection and enforcement of property rights because they can do it at a lower cost than private volunteer groups. However, the fiscal needs of government may induce the protection of certain property rights which hinder rather than promote growth; therefore we have no guarantee that productive institutional arrangements will emerge.”

Douglass C. North (1920–2015) American Economist

Source: The rise of the western world, 1973, p. 8

“Now the Constitution doesn’t say how this right is to be enforced, but it says it shall be done. And from 1793 to 1850 it depended upon the states honoring the Act. Well, that was not working, and so this federal law was substituted which provided enforcement procedures under the auspices of the federal government.”

Harry V. Jaffa (1918–2015) American historian and collegiate professor

2000s, The Real Abraham Lincoln: A Debate (2002), The Lincoln-Douglas Debates

“Government has three primary functions. It should provide for military defense of the nation. It should enforce contracts between individuals. It should protect citizens from crimes against themselves or their property. When government-- in pursuit of good intentions tries to rearrange the economy, legislate morality, or help special interests, the cost come in inefficiency, lack of motivation, and loss of freedom. Government should be a referee, not an active player.”

Milton Friedman (1912–2006) American economist, statistician, and writer

“There is no need for him to call on me. I am not about to be a party to anything having to do with the law that is going to destroy individual freedom and liberty in this country. I am having nothing to do with enforcing a law that will destroy our free enterprise system. I am having nothing to do with enforcing a law that will destroy neighborhood schools. I am having nothing to do with enforcing a law that will destroy the rights of private property. I am having nothing to do with enforcing a law that destroys your right --and my right -- to choose my neighbors -- or to sell my house to whomever I choose. I am having nothing to do with enforcing a law that destroys the labor seniority system. I am having nothing to do with this so-called civil rights bill. The liberal left-wingers have passed it. Now let them employ some pinknik social engineers in Washington, D. C., to figure out what to do with it.”

George Wallace (1919–1998) 45th Governor of Alabama

Speech http://www.let.rug.nl/usa/documents/1951-/speech-by-george-c-wallace-the-civil-rights-movement-fraud-sham-and-hoax-1964-.php (4 July 1964)
1960s

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Milton Friedman 158

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