Nuggets of Wisdom

Thursday, November 28, 2013

We Should Be Thankful for Private Property

While the new dope—excuse me, Pope—Pope Francis is busy denouncing free-market capitalism as a “new tyranny,” John Stossel reminds us all of the suffering the first American settlers faced when they rejected individual property rights:
The Pilgrims started out with communal property rules. When they first settled at Plymouth, they were told: "Share everything, share the work, and we'll share the harvest."

The colony's contract said their new settlement was to be a "common." Everyone was to receive necessities out of the common stock. There was to be little individual property.

That wasn't the only thing about the Plymouth Colony that sounds like it was from Karl Marx: Its labor was to be organized according to the different capabilities of the settlers. People would produce according to their abilities and consume according to their needs. That sure sounds fair.

They nearly starved and created what economists call the "tragedy of the commons."

If people can access the same stuff by working less, they will. Plymouth settlers faked illness instead of working the common property. The harvest was meager, and for two years, there was famine. But then, after the colony's governor, William Bradford, wrote that they should "set corn every man for his own particular," they dropped the commons idea. He assigned to every family a parcel of land to treat as its own.

The results were dramatic. Much more corn was planted. Instead of famine, there was plenty. Thanks to private property, they got food -- and thanks to it, we have food today.

This doesn't mean Pilgrims themselves saw the broader economic implications of what they'd been through. "I don't think they were celebrating Thanksgiving because they'd realized that capitalism works and communal property is a failure," says economist Russ Roberts. "I think they were just happy to be alive."
Let's pray that America doesn't repeat this same sad mistake.