Not a Zero-Sum Game - Ludwig von Mises Institute

NOT A ZERO-SUM GAME
impossible.19 Consequently, property rights are a necessary con-
dition for prosperity and for the reduction of poverty.
On the other hand, laws and regulations that distort the price
structure misrepresent facts and hide opportunity costs. The
result is that people end up making erratic decisions that misal-
locate resources and bring about an unintended net social loss.
Montesquieu, The Spirit of the Laws
The spirit of commerce brings with it the spirit of frugality, of economy, of
moderation, of work, of wisdom, of tranquility, of order, of regularity.
From the discussions in this monograph we can appreciate how
the enforcement of property rights brings about cost saving
exchanges, increases social economic efficiency, and reduces
poverty. In addition, respect for property rights has collateral
benefits: it contributes to avoid pollution (damage to someone
else's property rights), it reduces corruption (stealing someone
else's property), and it restricts bribery (when people act by
right and not by permission, bureaucrats have fewer opportuni-
ties to exact bribes). The certainty that derives from the rights
to property encourages people to prudently plan and economize,
because economic losses come out of their own pockets. Both
opportunity costs and the possibility of losses are important and
mutually reinforcing incentives to save resources. When losses
occur, they are limited to the resources that their owners put at risk.
Most importantly, the enforcement of property rights fosters a
voluntary, responsible, and peaceful society, based primarily on
free exchange.
19. Ludwig von Mises, Human Action (Indianapolis: Liberty Fund, Inc., 2007), pp.
206-2 1 1.