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