EclectEcon

Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre                                     A View from/of the Econochasm by John Palmer

Richard Posner deserves the next Nobel Prize in Economics
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Property Rights: The Salvation of the Pilgrims
Every year, Carolyn Baum publishes a column (likely this year to appear here) that points out the real reason for US Thanksgiving: the institution of property rights by the Governor of the Pilgrim colony and the ensuing explosion in output. Here is an excerpt from her column as it appeared last year.
Their first winters after they landed at Plymouth Rock in 1620 and established the Plymouth Bay Colony were harsh. The weather and crop yields were poor.

Half the Pilgrims died or returned to England in the first year. Those who remained went hungry. Despite their deep religious convictions, the Pilgrims took to stealing from one another.

Finally, in the spring of 1623, Governor Bradford and the others ``begane to thinke how they might raise as much corne as they could, and obtaine a better crop than they had done, that they might not still thus languish in misery,'' according to Bradford's History.

Old-World Baggage

One of the traditions the Pilgrims had brought with them from England was a practice known as ``farming in common.'' Everything they produced was put into a common pool; the harvest was rationed among them according to need. [EE: sounds pretty Marxist to me]

They had thought ``that the taking away of property, and bringing in community into a common wealth, would make them happy and flourishing,'' Bradford recounts.

They were wrong. ``For this community (so far as it was) was found to breed much confusion and discontent, and retard much imployment that would have been to their benefite and comforte,'' Bradford writes.

Young, able-bodied men resented working for others without compensation. They thought it an ``injuestice'' to receive the same allotment of food and clothing as those who didn't pull their weight. What they lacked were proper incentives.

A New Way

After the Pilgrims had endured near-starvation for three winters, Bradford decided to experiment when it came time to plant in the spring of 1623. He set aside a plot of land for each family, that ``they should set corne every man for his owne perticuler, and in that regard trust to themselves.''

The results were nothing short of miraculous.

Bradford writes: ``This had very good success; for it made all hands very industrious, so as much more corne was planted than other waise would have bene by any means the Govr or any other could use, and saved him a great deall of trouble, and gave far better content.''

The women now went willingly into the field, carrying their young children on their backs. Those who previously claimed they were too old or ill to work embraced the idea of private property and enjoyed the fruits of their labor, eventually producing enough to trade their excess corn for furs and other desired commodities.



Category: Economics Posted on Tuesday, November 20, 2007 at 12:04am
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KipEsquire (mail) (www):
I'm going to engage in a bit of anti-capitalism and steal this for my blog. =)
11.20.2007 6:18am
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