CREI Lecture 3

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CREI Lecture 3

• John Locke on Private Property

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Origin of Property
Natural Resources created by God for the
sustenance of human beings.
An individual is entitled to use a resource by
working on it
the good becoming his/her private property.
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Labour and private property
Each individual OWNS their own ability to work
Producing a good MIXES a persons labour with the
commonly owned natural resource
Thus that good becomes the private property of
the mixer
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Types of private property
Consumer goods can be privately owned by mixing
labour
Capital goods, especially land in Lockes era,
can become privately own by mixing labour
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Accumulation of land and wealth
Should anyone be allowed to own large amounts of
land/capital?
YES if they WORK enough
NO if the land /produce is WASTED
Waste is against natural law.
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Limits to accumulation
Should Government, revolution etc expropriate
excess wealth?
No this breaches natural rights
Solution is efficient GOODS MARKETS
Goods can be sold for other things which are not
wasted by wealthy individual and his family
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Natural and civil society
In a CIVIL society, goods sold for MONEY
Money doesnt naturally decay and so doesnt in
any simple sense WASTE
Along with money as defining civil society is
properly constituted GOVERNMENT
Prior to civil society, human beings were in a
NATURALsociety
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Money land and wealth
Money increases the possibility of large scale
accumulation of land and other wealth by a few
individuals
But money not used (hoarded) might still be
regarded as wasted
But with the existence of CAPITAL MARKETS even
this limitation is overcome
Money can be LENT to entrepreneurs who will
invest it, enhancing total output
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Investment and Accumulation
So accumulation can increase output, thus more
than enough and as good products
Land and capital owners receive legitimate
payment for their lending in the form of INTEREST
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What about the poor?
But the poor would lose by the increasingly
concentrated distribution of income and wealth
They might starve to death!
This would not be acceptable to Locke against
natural rights
But this doesnt mean there should be socialist
redistribution, this would breach rights of the
rich
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How the poor might benefit from accumulation of
private wealth
A poor person still owns his ability to work
supply of labour
Poor can be employed by rich to produce goods
from their land and capital demand for labour
With an efficient LABOUR MARKET the poor can sell
their labour power and make a living
By living abstemious lives they might even be
able to accumulate wealth themselves
Thus having no moral claim on the wealth of the
rich
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Lockes micro-economics

• So Locke asserts
• Individualism and choice are the essence of
  humanity
• Private property enables individuals to gain
  resources
• The markets product, labour and capital are
  vital to making the system work

But note also that Lockes ideas also see work as
central leading to more radical traditions
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Social implications of Lockes ideas
What about people who CANNOT sell their labour
power
Family main supporting institution
What of the role of women?
As a last resort, CHARITY should be used to
support the deserving poor
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Role of the state and politics
Function of the state to PROTECT PRIVATE PROPERTY
State arise through a SOCIAL CONTRACT
Democracy vital to this role to stop abuse of
state power, but should non-property-owners be
included?
Separation of various state powers, parliament,
law, civil service also vital
People entitled to overthrow state if contract is
breached by Government
But State is not allowed to re-distribute property
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