A Positive Programme for Laissez-Faire Capitalism

Abstract

We argue in this paper that the last best hope for economic prosperity is a system based on private property rights, capitalism and limited government. One of the reasons for this claim is that, in such a system, in contrast to one in which the state plays a large role, when mistakes are made, those responsible for them automatically tend to go bankrupt; those who remain in operation at any given time have thus passed a stringent market test. The same cannot be said for government bureaucracies, FEMA being only one recent example. We apply this insight to examples ranging widely over the economy, and including money, infrastructure, welfare and poverty, crimes, labour relations and the environment, where we consider air pollution, forests, sanitation, species extinction and renewable and non-renewable resources.