“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

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

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Bernard Harcourt 7

American academic 1963

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“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 (1912–2006) American economist, statistician, and writer

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

“It is traditional in the theory of the firm to define the production opportunity set available to the firm in terms of its boundary -- the maximum attainable set of output quantities for various input quantities, given the state of technology and knowledge. This boundary is the production function of the firm. One of our purposes here is to point out the dependence of such production functions on the structure of property rights and contracting rights within which the firm exists. We redefine the production function in order to recognize the dependence of output on the structure of property and contracting rights. That expanded framework is then used to discuss a concrete set of problems surrounding the role of labor in the firm ranging from the 'labor-managed firm' system (in which tradable capital value residual claims [common stock] are legally prohibited), and the codetermination and industrial democracy movements (in which management participation by labor is required by law), to cooperatives and professional partnerships (i. e., quasi-labor-managed firms which arise out of the voluntary contracting process), and the capitalist corporation.”

Michael Jensen (1939) American economist

Michael C. Jensen and William H. Meckling. "Rights and production functions: An application to labor-managed firms and codetermination." Journal of business (1979): 469-506.

“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 managers will exercise their control over the instruments of production and gain preference in the distribution of the products, not directly, through property rights vested in them as individuals, but indirectly, through their control of the state which in turn will own and control the instruments of production. The state – that is, the institutions which comprise the state – will if we wish to put it that way, be the “property” of the managers’.”

James Burnham (1905–1987) American philosopher

Source: The Managerial Revolution, 1941, p. 71–72; As cited in: Stijn Maria Verhagen (2005). Zorglogica’s uit balans. p. 300

“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

“A natural-rights libertarian values the life of the innocent individual. Only by protecting each individual's rights—life, liberty and property—can the government legitimately enhance the wealth of the collective. Only through fulfilling its night watchman role can government legitimately safeguard the wealth of the nation. For each individual, secure in his person and property, is then free to pursue economic prosperity, which redounds to the rest.”

Ilana Mercer South African writer

Barcelona and Beyond: How Politicians & Policy Wonks Play God With Your Life http://dailycaller.com/2017/08/21/barcelona-and-beyond-how-politicians-wonks-play-god/, Daily Caller, August 21, 2017.
Barcelona and Beyond: How Politicians & Policy Wonks Play God With Your Life http://www.americanthinker.com/blog/2017/08/barcelona_and_beyond_how_politicians_and_policy_wonks_play_god_with_your_life_.html, American Thinker, August 20, 2017.
2010s, 2017

“Economics is not politics. One is a science, concerned with the immutable and constant laws of nature that determine the production and distribution of wealth; the other is the art of ruling.”

Frank Chodorov (1887–1966) American libertarian thinker

Source: The Rise & Fall of Society (1959), p. 77

“The rule systems governing transactions among agents in a defined sphere specify, to a greater or lesser extent, who participates (and who is excluded), who does what, when, where and how, and in relation to whom. ln particular, they define possible rights and obligations, including rules of command and obedience, governing specified categories of actors or roles vis a vis one another. The theory deals with the properties of social rule systems, their role in patterning social life, and the social and political processes whereby such systems are produced, maintained, and transformed as well as implemented in social action and interaction.”

Tom R. Burns (1937) American sociologist

Source: The shaping of social organization (1987), p. 8; Cited in: Carola Aili, Pamela Denicolo, Lars-Erik Nilsson (2008) In Tension Between Organization and Profession. p. 228.

“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

“Every political debate these days contains a lot about economic policies. So much so that sometimes I think people get a little tired of hearing about them. Naturally there is a cry that Government must put people before economics. Who could disagree? That is the very reason why we in our Party have constantly fought Marxism and Communism. Fought Marxism because of —its compulsory society —its nationalisation of the means of production, distribution and exchange. —its attempt to snuff out individual conscience. —the absence of the great voluntary societies which are so much a part of our way of life. —its denial of freedom to choose —its elevation of the values of the State above those of religion. Its denial of the right to educate children outside the state system. —its extinction of private property because property rights support human rights.”

Margaret Thatcher (1925–2013) British stateswoman and politician

Speech to Conservative Women’s Conference (20 May 1981) https://www.margaretthatcher.org/document/104653
First term as Prime Minister

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Bernard Harcourt 7

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