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Friday, 4 March 2005
Land rights and libertarianism
Topic: Politics
Dan Sullivan has written an essay entitled "Are you a Real Libertarian, or a ROYAL Libertarian?" which provides an interesting take on land and property rights from a libertarianism perspective.

Its basic premise is shown in the following excerpt.

We call ourselves the "party of principle," and we base property rights on the principle that everyone is entitled to the fruits of his labor. Land, however, is not the fruit of anyone's labor, and our system of land tenure is based not on labor, but on decrees of privilege issued from the state, called titles. In fact, the term "real estate" is Middle English (originally French) for "royal state." The "title" to land is the essence of the title of nobility, and the root of noble privilege.

When the state granted land titles to a fraction of the population, it gave that fraction devices with which to levy, and pocket, tolls on the fruits of the labor of others. Those without land privileges must either buy or rent those privileges from the people who received the grants or from their assignees. Thus the state titles enable large landowners to collect a transfer payment, or "free lunch" from the actual land users.
In other words, an individual's state-sanctioned right to land may amount to the denial of the right of others to use the land. This is not consistent with the principles of "real" libertarianism.

The essay focusses on property rights -- particularly on land -- but there are some larger issues involved here that is inherent with libertarianism.

One is the problem of distinguishing between natural rights from state-assigned rights. Libertarianism asserts that the individual should have the right to do what he wants free from state interference. However, when a right that an individual enjoys is actually assigned by the state -- as in the case of land title -- it becomes disingenuous to defend that right under the guise of libertarianism.

The problem is exacerbated when the individual's enjoyment of that right encroaches upon the right of others -- in the case of land, the right of others to use that land. This leads to a conundrum. The tendency for the interests of individuals to come into conflict when individuals insist upon their individual rights means that state intervention is often desirable to manage the exercise of those rights. In such situations, libertarianism -- insofar as it decries state intervention -- can become counter-productive.

Sullivan, nevertheless, tries to find an alternative through intervention by the community instead of the state.

Private communities can be built on explicit contracts (leases) with the citizens, can have internal democratic processes that are vastly superior to electoral democracy, can be far more flexible and free of state intervention, and can be downright profitable (even with trust investors pocketing a mere fraction of the rent). Most of all, dealing with investors is far more pleasant and self-affirming than dealing with politicians.
The problem with this view is that a state is to a large extent a community writ large. There comes a point in size where the distinction between community and state appears arbitrary.

Personally, I doubt that a strict adherence to the principles of libertarianism can provide a satisfactory answer.

Ultimately, I see the value of libertarianism in its emphasis on individual liberty. However, individual liberty is only one human need among many. Libertarianism cannot be an all-encompassing ideology. Libertarians who apply the ideology unswervingly ultimately do no favours to individuals in general.

Posted by lim_cs at 1:44 PM WST | post your comment (0) | link to this post

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