The Failure of Utilitarianism
Toward a Theory of Justice in Property
Toward a Critique of Existing Property Titles
 

THE FAILURE OF UTILITARIANISM

Until very recently, free-market economists paid little attention to the entities actually being exchanged on the very market they have advocated so strongly. Wrapped up in the workings and advantages of freedom of trade, enterprise, investment, and the price system, economists tended to lose sight of the things being exchanged on that market. Namely, they lost sight of the fact that when $10,000 is being exchanged for a machine, or $1 for a hula hoop, what is actually being exchanged is the title of ownership to each of these goods. In short, when I buy a hula hoop for $1, what I am actually doing is exchanging my title of ownership to the dollar in exchange for the ownership title to the hula hoop; the retailer is doing the exact opposite.[1] But this means that economists’ habitual attempts to be wertfrei, or at the least to confine their advocacy to the processes of trade and exchange, cannot be maintained. For if myself and the retailer are indeed to be free to trade the dollar for the hula hoop without coercive interference by third parties, then this can only be done if these economists will proclaim the justice and the propriety of my original ownership of the dollar and the retailer’s ownership of the hula hoop.

If you think about it, it is inherently implausible that the state could be an effective administrator of justice, for which there is a supply and demand like any other good. Shortages, inefficiencies, arbitrariness, and underlying chaos all around are going to be inherent in the attempt.

Because we are dealing here with the meting out of coercion, we can add that inhumane treatment and outright cruelty are also likely to be an inherent part of the system.