“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

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

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Douglass C. North18

American Economist 1920–2015

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“No, on the contrary, the Constitution exists to protect that right. The important point is that the Constitution exists to protect individual liberty and individual property. In fact, the most important of all of the rights, really the foundation of all rights, are the rights to private property. But the right to private property is a right for each individual human being to own himself.”

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“Property rights develop to internalize externalities when the gains of internalization become larger than the cost of internalization. Increased internalization, in the main, results from changes in economic values, changes which stem from the development of new technology and the opening of new markets, changes to which old property rights are poorly attuned [G]iven a community's tastes… [for private versus state ownership], the emergence of new private or state-owned property rights will be in response to changes in technology and relative prices.”

Harold Demsetz (1930–2019) American economist

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“Intensive research in recent years into the sources of economic growth among both developing and developed nations generally point to a number of important factors: the state of knowledge and skill of a population; the degree of control over indigenous natural resources; the quality of a country's legal system, particularly a strong commitment to a rule of law and protection of property rights; and yes, the extent of a country's openness to trade with the rest of the world. For the United States, arguably the most important factor is the type of rule of law under which economic activity takes place. When asked abroad why the United States has become the most prosperous large economy in the world, I respond, with only mild exaggeration, that our forefathers wrote a constitution and set in motion a system of laws that protects individual rights, especially the right to own property. Nonetheless, the degree of state protection is sometimes in dispute. But by and large, secure property rights are almost universally accepted by Americans as a critical pillar of our economy. While the right of property in the abstract is generally uncontested in all societies embracing democratic market capitalism, different degrees of property protection do apparently foster different economic incentives and outcomes.”

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

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“The difference between left and right of center … originated in the French parliament. The people left of center were liberals; the people right of center were conservatives. Broadly speaking. And generally speaking, people on … the right of center, are interested in property values, property, property rights. The rights and the rights of property. And generally speaking again – it's all generalized – the left-of-center people are more concerned with humans and human beings and human concerns; to the care of humans, not the care and worry about property rights. That's generally been true. And Bush is pushing this country farther down the hill, faster than anyone has before.”

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“A theoretical defense of private property as a feature of Natural Law, however, was not fully made until the sixteenth and seventeenth centuries, the age of Jean Bodin and Hugo Grotius. But that the idea occurred to Romans is evident from Cicero’s argument that government could not interfere with private property because it had been created in order to protect it.”

Richard Pipes (1923–2018) American historian

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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.”

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

“By that time a structure of property rights had developed in the Netherlands and England which provided the incentives necessary for sustained growth. These included the inducements required to encourage innovation and the consequent industrialization. The industrial revolution was not the source of modern economic growth. It was the outcome of raising the private rate of return on developing new techniques and applying them to the production process.”

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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.”

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“… it is precisely because it is not a democracy that China will likely be so successful…What is of vital importance for economic success is economic freedom, meaning the protection of private property, the rule of law, and minimal regulation and taxation, not the right to vote.”

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