Wednesday 24 February 2010

Property rights are only relevant if our use of the resource is affected

Does it matter if we have agreed to stay away from the property of others? If we are paid not to use a particular piece of property and end up doing so, without causing any damage, is this a crime? Surely there is no crime because we have not harmed anything. If someone is offended that we have used the property this does not constitute a crime and so there is no cause for punishment and no reason for the person to be ejected. Even if we agree to the contract, any contract which prevents us from using available resources is not valid. We cannot agree to stay away from unused property, even if we are paid to do so.

It is worthless to pay someone to stay away from property which is not in (exclusive) use by yourself. Only if their use of property prevents (or is detrimental to) your own use does such a contract stand up. We can pay someone if their use reduces ours, so to pay someone not to fish in a particular pond, for example.

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