Ive been bothered by some comments of posters who treat property as a social institution. An object that does not occur praxeologically, but an object that is fabricated by man. IMHO this is inconsistent with AE, Praxeology, and a even other principle we’ve adopted, like the homesteading principle.
Their definition of property follows something like this.
Property is a concept of possession over an object, where the possession is legitimately accepted by all due to social norms.
I am goign to try and explain below why the above definition talks about Property Rights, but not about Property. First off I don’t disagree that social norms of legitimizing possession of property is extremely important and relevant to certain discussions. However I feel that it is a massive mis-characterisation to label the above definition as property.
Property a descriptive distinction involving the human interaction of physical objects. More accurately described as a praxeological concept employed by man, since it inherently involves human action. There requires no need for society to exist, for there to be property. Only man. Those who think that property is a societal institution run into the following dilemmas.
Crusoe Land.
Lets visit Robinson Crusoe’s island for illustration.
In Robinson Crusoe’s interactions throughout his day, he encounters various objects.There are two main categories. First, objects like sticks, and grains of sand picked up by Crusoe and promptly discarded with disinterest. Other objects however have been homesteaded, and created. These objects are cared for, maintained, and are given extra attention to by Crusoe as compared to the random sticks Crusoe finds on the ground.
The first catagory are objects which at least in Crusoe’s islands are non-economic objects. Objects of super-abundance or which currently present no economic value. Obviously this is due to change, but this is why Crusoe is not interested in rationing and caring for grains of sand. These objects may be in temporary possession of Crusoe, but are not in permanent possesion
The other categories are objects in permanent possession by Crusoe. Objects for example safely stowed away in his tool shed back next to his hut. A hammer, a hoe, and an axe. All objects that Crusoe keeps, maintains, and protects from the elements in his shed. Many of these objects have been crafted by Crusoe, but don’t have to be. For instance Crusoe may be attempting to safely care for a ruby he found on the beach. Perhaps he stores it under his pillow for luck.
Dilemmas
Given our Crusoe world, those who believe that property is a social institution are faced with these problems.
What is the descriptive term regarding an object that Crusoe only temporarily possesses but discards. Some, like myself, would call this possessing. The object is possessed by Crusoe.
What is the descriptive term called when Crusoe keeps, maintains, and cares for physical objects permanently? Like objects Crusoe stores in his tool shed? Or objects that Crusoe has collected from nature and granted extra attention to, like placing a ruby under his pillow. I call these objects property, and are for now in the ownership of Crusoe.
Notice how many objects which can be in temporary possession are not economically relevant objects, however all property labeled objects are economically relevant objects.
Despite the fact that there are no other other individuals on Crusoe’s paradise Island, there is a very important behavioral distinction between the way Crusoe interacts with objects. Some objects he’s collected, homesteaded, and even improved as capital goods. Other objects he discards. Some objects he’s temporarily come into possession with, while others he owns in permanent possession.
If we pretended that property did not exist in Crusoe’s island, then we could make no distinction between the tools he cares for in his shed, and the random sticks found on the ground. As such the original definition I provided in bold above is unsatisfactory. We would have no way of describing economic objects Crusoe finds relevant, and non-economic objects which are not currently relevant to human action.
Property
As far as society is concerned. Property is a praxeological subject as I demonstrate, and its existence is not dependent on the existence of “society”. By society I mean, more then one person socially interacting.
What happens in society is that property is recognized.
What does it mean that property is recognized? It means that:
- Man recognizes that he must occupy scarce objects over time, to create expected satisfaction.(Praxeology)
So property is just an object, an economic object of interest to man. It is irrelevant whether the property is currently in the possession of a thief, or the rightful owner. Because the term property simply identifies it as an economic good of interest to man, it makes no statement over who the rightful owner is. That is the task of rights, and claims to human action. This is why thieves steal property, not grains of sand.(Unless of coarse the grains of sand are property! IE Property makes a distinction between economic goods(Wood), and non-economic goods(oxygen). Obviously human action is the concept responsible for what each object is.
Given these facts of reality, society can build a social construction of rights regarding property.
Rights
Society recognizes that property exists and may employ different ways of handling iy via the social medium(The market). This is where claims to actions come into play(Rights). Rights are nothing more then claims to human action, often times involving a physical object(property).
This is why it is called Property Rights, and not simply property alone. For if property implied rights then the term Property Right would be redundant.
It is the task of society, and it’s marketplace(The social medium) to decide what system of rights it wishes to employ regarding the use of property. The conflation that is occuring is one of rights, and property, when the two words have different meanings and different origins.
Thanks.