The Economics and Ethics of Private Property.

• Author: McGee, Robert W.

Hans Hoppe's latest book places another nail in the coffin of socialism. As was the case with his previous book, A Theory of Socialism and Capitalism, his book on The Economics and Ethics of Private Property takes an uncompromising position in defense of private property, which is the ultimate foundation of capitalism. Most modern-day economists will find many reasons to take issue with Hoppe's views, since he takes a natural rights position.

The book is well worth reading for economists of all persuasions. Those who agree with his basic premise will find many useful arguments to support previously held positions. And those who view private property and ethics from a utilitarian, relativist or positivist perspective will find many challenges to their long-held beliefs. The book is provocative and is written in attack mode. But it is also quite scholarly.

Hoppe's background, with doctorates in economics and philosophy, gives him a broad perspective to draw from when defending property rights. He makes some connections between diverse disciplines that would be missed by most economists and philosophers.

The book is divided into two parts, one each on economics and philosophy. The first chapter in the economics section points out some fallacies in public goods theory as applied to the production of security. Hoppe takes the position that there is nothing different between the production of security and the production of any other good or service. But more than that, he attacks the very notion that there can exist such a thing as a public good. "The whole public goods theory is faulty, flashy reasoning, ridden with internal inconsistencies, non-sequiturs, appealing to and playing on popular prejudices and assumed beliefs, but with no scientific merit whatsoever." Part of the problem with public goods theory is that there is no clear-cut distinction between public and private goods; what is public one minute may be private the next, and vice versa. The whole distinction between public and private goods is a relapse into the pre-subjectivist era of economics.

Hoppe next examines the economics and sociology of taxation. In the first part of this chapter, he presents a praxeological account and explanation for Say's central argument that taxation retards growth and hampers wealth accumulation and he refutes some counterarguments that take the position that taxation does not necessarily obstruct the formation of wealth and property. In the second...