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The Independent Institute
Contest Essay
Human Rights Inflation and Property Rights
Devaluation
By Philipp Bagus | Posted: Mon. October 13, 2008
Junior Faculty Winner. Second Prize ($5,000)
Abstract
Property rights are human rights grounded in human nature. In fact, all human rights can be
formulated as a variation of property rights. Nevertheless, many authors have advanced
alleged human rights that confront and violate property rights. In this paper, the differences
between property rights and these alleged rights, or pseudo human rights, are analyzed. The
differences regarding the concomitant political systems explain why there have been more
defenders of pseudo human rights than of property rights.
There is no such dichotomy as “human rights” versus “property rights.” No human
rights can exist without property rights.[1]
—Ayn Rand
The program of liberalism, therefore, if condensed into a single word, would have to
read: property... All the other demands of liberalism result from this fundamental
demand.[2]
—Ludwig von Mises
1. Introduction
We need not look very long to find unsettling news. Haitians scavenge for food in a garbage
dump in Port-au-Prince, a city that has witnessed recent food r iots. As food prices spiral, those
in places like Egypt, India, Malaysia, Senegal, and sub-Saharan Africa face similar unrest to
that of Haiti.[3] In addition to widespread hunger, violence has erupted in Tibet as Chinese
security forces attempt to subdue protests by Buddhist monks and other ethnic Tibetans.[4] In
Zimbabwe, police gather up election monitors and opposition members as the election process
continues in disarray.[5] In Dafur, estimates suggest that as many as 300,000 people have died
as a result of the five-year conflict in the region, a situation that some have labeled as
genocide.[6] Though recent news is not new news, hunger, stifling of dissent, military conflict,and claims of genocide are characteristic of the times, often invoking calls to respect and
enforce human rights.
Over the last 60 years, human rights have become the moral currency of our times, as efforts
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are made to address social injustices. Such efforts are reflected in the positing and stipulating
of human rights. In fact, the number of human rights treaties in international law over the last 60
years has substantially increased. Marking the beginning of this expansion, the Declaration of
Human Rights (1948) has been followed by the European Convention on Human Rights (1950),
the International Covenant on Civil and Political Rights (1966), the International Covenant on
Economic, Social and Cultural Rights (1966), and the British Human Rights Act (1998) among
others. This growing industry of human rights is also evidenced by the number of alleged
human rights discussed in academic discourse. Human rights language permeates a vast array
of social life and is found in discussions of health care, education, wages, welfare, culture, and
the environment. In fact, Nickel (2006) has described this as a “human rights inflation.”
The continuously expanding list of human rights is especially alarming from a classical liberal
perspective as represented by Smith (1776), Bastiat (1850), Mises (1927) and Hayek (1960), in
that it causes a devaluing of important human rights. More precisely, these more recent human
rights deal mainly with social welfare, entailing positive duties for the government, requiring its
expansion. These more recent human rights stand in contrast to individual liberty and
progressively undermine property rights and freedom.
This paper has two goals. The first is to examine the relationship between property rights and
human rights. Starting from a Lockean natural law perspective, I investigate which human rights
can be considered natural rights. I find that only property rights, and rights derivable from them,
are natural rights. Subsequently, the unbridgeable differences between property rights and
what I call pseudo human rights, i.e. alleged human rights that are not natural rights, will be
analyzed.
The paper’s second goal is to investigate why property rights have found fewer intellectualchampions than pseudo human rights. I will show that the reason lies in the abysmal
differences between the two types of rights. A capitalist society is grounded in property rights
while pseudo human rights are a vehicle to promote socialist ideals. Consequently, I explore the
reasons why intellectuals tend to be socialists and therefore why property rights have rarely
found staunch defenders while the defense of expansive human rights continues to be en
vogue among intellectuals.
2. Property Rights as (Natural) Human Rights
According to natural law theorists, what is just and unjust does not depend on human
arbitrariness but is objective. Natural law theorists argue further that the norms of justice are
grounded in human nature and can be found by human reason. One of the most important
modern natural law theorists, John Locke, developed his natural law theory in his famous Two
Treatises on Government , inspiring American revolutionaries and the Declaration of
Independence. John Locke (1824, ch. II, § 6) maintains that
The state of nature has a law of nature to govern it, which obliges every one: and reason, which
is that law, teaches all mankind, who will but consult it, that being all equal and independent, noone ought to harm another in his life, health, liberty, or possessions.
The r ight to life, health, liberty or possessions is a central point for classical liberal
and libertarian political philosophy and is closely connected to property rights.[7]
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Property rights can be deduced from two basic twin axioms (Rothbard, 1982): the
axiom of self-ownership and the homesteading principle. The self-evident principle
of self-ownership (Machan 2002) signifies that every human being has the absolute
jurisdiction over his own body.[8] The principle of self-ownership points to the
homesteading principle, also known as first-use-first-own or finder-keeper principle.
As Locke (1824, Ch. V, § 27) writes famously on mixing one’s labor with natural
resources:
Every man has a property in his own person . . . The labor of his body and the work of his
hands we may say are properly his. Whatsoever then he removes out of the state that nature
hath provided, and left it in, he hath mixed his labour with, and joined to it something that is his
own, and thereby makes it his property.
Kirzner (1974) renders this more accurately, that our entrepreneurial actions make
us the rightful owner of our findings. When we discover an unowned resource and
form a use for it, we are the rightful owners. We have used our entrepreneurial
capacities to create an economic means. Parting from the self-ownership andhomesteading principles it is then a small step to deduce the rights to one’s
production and the right to exchange one’s property. As we are owners of ourselves
and especially of our own minds, everything that we do with our homesteaded
resources without harming the property of others is just. Consequently, whatever we
produce with our resources and mind is ours. Furthermore, we can transfer or
exchange our property and enter into contract with other people freely. Property
rights also answer the question of when the use force in society is justified. Force is
justified in order to defend one’s property and any initiation of an attack on anyone’s
property is unjustifiable.
I have thus shown that property rights are natural rights stemming from natural law theory. In
fact, property rights form a core element of natural law. However, property rights are not only
natural rights, they are also and foremost human rights. Property rights are human rights for
two main reasons. First, property rights can be found by human reason and are implied in
human nature. Second, property rights only accrue to human beings. Every human being owns
these rights by virtue of his human nature (Machan 1997). Things, in contrast, cannot possess
a property right.
After demonstrating that property rights are human rights, I now take on the more difficult task
of analyzing Murray N. Rothbard´s (1977; 1998) bold claim that human rights are dependent on
property rights. In other words, no human rights exist which cannot be formulated in terms of
property rights. From this point of view, property rights are a cardinal restraint for what may
else be considered a human right. While doing so, I formulate human rights in terms of property
rights and define a means of sorting human rights from pseudo human rights.
3. Human Rights Contained in Property Rights Vs. Pseudo Human Rights
Rothbard (1998) claims that any right can be summarized or formulated as a variant of property
rights. Following Rothbard, I will now use a property rights approach to sort through the mass of
alleged human rights in order to distinguish human rights from pseudo human rights.
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The Universal Declaration of Human Rights (1948) alone provides a list of over two-dozen
human rights. These rights can be grouped into six families (Nickel 2006): security rights, due
process rights, liberty rights, political rights, equality rights, and social (or “welfare”) rights. The
first five groups are commonly called first-generation rights. Social rights are called second-
generation rights. More recently, a third group encompassing collective or group rights has
been added. In the following section, the legitimacy of these alleged human rights will be
analyzed individually.
3.1. First-Generation Rights
The first set of first-generation human rights concerns security rights which protect against
crimes like murder, torture and rape. As human rights are commonly seen as restraints on
governments, security rights protect against infringement of the government on the lives of its
own citizens. Clearly, security rights are implied in property rights, namely to the principle of
self-ownership. Yet, these rights not only restrain governments from the use of unjustified force,
they restrain the use of unjustified force by individuals. If I own my body, no one has the right todo harm to my body without my consent.
The second set of first-generation human rights concerns due process rights, which protect
against unfair trials. Due process rights are also entailed in property rights. Property rights imply
that an innocent person cannot be arrested arbitrarily nor punished by an arbitrary trial. Any
use of force against innocent persons violates the self-ownership principle.
However, due process rights do not obligate the person whose property rights are violated to
go through a burdensome trial.[9] For instance, applying natural rights theory, if someone
steals my car and I happen to see it one day in a street, I have the right to take it back
immediately. The criminal does not have a right to force me to go through a burdensome trial.
In spite of this right to self-defense it is probable that in a libertarian society people would
almost universally make use of due process. There is, after all, a higher risk of error and costly
restitution of that error without due process (Rothbard 1998). Without due process we might
just not have found the criminal but an innocent person. Moreover, we can expect a stronger or
even violent resistance of the accused person when we do not make use of due process.
The third set of first-generation human rights encompasses the so-called liberty rights which
protect freedom of belief, expression, and association. These rights are to a great extent
included in property rights as well. As each is the owner of one’s own mind, he is free to believe
whatever he wants. Moreover, each individual has the right to express his beliefs with his own
property. Anyone can speak on his own property or use his means to produce or buy media in
order to express his opinion. One could, for instance, rent a hall or a yard and speak to an
audience, buy air-time on radio and television, acquire and blog on an internet domain or print
his opinions in acquired space in newspapers, pamphlets, and books.
All the freedom contained in liberty rights is necessarily limited by property rights and
inseparable from them. As Rothbard (1977, 238-39) states regarding the right to free speech:
...He has the right only on his own property or on the property of someone who has
agreed, as a gift or in a rental contract, to allow him on / the premises. In fact, then
there is no such thing as a separate “right to free speech;” there is only a man’s
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property right: the right to do as he wills with his own or to make voluntary
agreements with other property owners. (Italics in the original)
The same is true for the right of association. There is no separate right of association but only
the possibility to use one’s own property to form with others voluntarily associations, clubs,
groups or parties.
The right of association is related to the r ight to assembly, which brings us to the fourth set of first-generation of human rights, which concerns political rights. Political rights protect freedoms
to participate in politics and assemblies, vote, protest, and communicate. Rightly understood,
political rights can also be inferred from property rights. Everyone may use his property to
protest, assemble, and speak freely. For example, I can call for a demonstration in my yard or I
can buy ads in a newspaper to express my political views. I can use my car to drive to the ballot
box, make an x with my pencil and cast the vote. Or I can participate in government by using
my property. A different assessment arises when it comes to the actions of government itself.
For instance, people can use their property to vote on the question of whether an individual’s
house and land should be expropriated to build a new highway. The vote in favor of theexpropriation itself does not violate property rights. Only at that moment the government
expropriates the property, does it violate property rights. For each person has the complete
authority over the use of her own property. Similarly, participation in a government itself is
legitimate. Participation only becomes illegitimate in the moment when the government violates
property rights.[10]
Before turning to second-generation human rights, we can state that property rights do imply
many of the first-generation human rights, like security of life, freedom of association, and
freedom of speech. In fact, these rights are not separable from property rights. Furthermore,when property rights are infringed upon, these human rights disappear along with them. For
instance, when TV channels are licensed or state owned, the freedom of speech is inhibited as
opinion in the TV is controlled. The same happen when newspapers are licensed or owned by
the government. As Mises (2006, 33) points out “free press can only exist where there is private
control of the means of production.” The same curtailment of human rights occurs when private
property is violated to the extent that demonstrations, assemblies, or the formation of certain
groups are forbidden. Moreover, by prohibiting the use of private property for certain spiritual
meetings, religious rights are violated.
3.2. Second-Generation Rights
Whereas first-generation human rights are mainly negative rights, i.e., rights to be left alone,
second generation rights are mainly positive in that they generally obligate governments to
provide for the socio-economic welfare of others.[11] In this sense, these second-generation
rights are sometimes called welfare rights. I will now look at some of these socio-economic or
second-generation r ights in detail. First, I quote two articles of the Universal Declaration of
Human Rights to provide an impression of the nature of second-generation rights. Then, I
proceed to present and critique the main argument in for why welfare rights should be
considered human rights.
Article 25 (1) of the Universal Declaration of Human Rights states that
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Everyone has the right to a standard of living adequate for the health and well-being
of himself and of his family, including food, clothing, housing, and medical care and
necessary social services, and the r ight to security in the event of unemployment,
sickness, disability, widowhood, old age or other lack of livelihood in circumstances
beyond his control.
Article 26 (1) reads:
Everyone has the right to education. Education shall be free, at least in the
elementary and fundamental stages. Elementary education shall be compulsory.
Technical and professional education shall be made generally available and higher
education shall be equally accessible to all on the basis of merit.
Three main kinds of arguments are brought forward in favor of the alleged human social right to
a minimum adequate standard of living, health care, social services, or education. The first kind
of argument is egalitarian (Singh 2001). Although various egalitarian arguments differ in their
account of equality, these arguments use equality as a norm to justify the claims of welfare
rights. For example, James Sterba (2001, 325) takes an egalitarian approach when he
maintains that there is a positive right, or “liberty not to be interfered with in taking the surplus
resources of the rich what is required to meet one’s basic needs.” He continues (326) asking:
“Isn’t it clearly unreasonable to require the poor to sacrifice the liberty to meet their basic needs
so that the rich can have the liberty to meet their luxury demands?”
A second line of reasoning promotes human dignity as the norm for justifying the redistribution
of resources. For example, Schachter (1983) and Otto (1997) regard human dignity – a term
widespread in human rights treatises - as a foundation for human rights. According to this
rationale, human dignity or the intrinsic worth of human beings demands, that everyone be
provided an adequate means of subsistence or an opportunity to work. Human dignity would
also imply, for instance, that every one gets a basic education and a minimum of “distributive
justice”.
The third argument made in favor of social rights is based in T. H. Marshall’s influential work:
Citizenship and Social Class: And other Essays (1950). Marshall argues that the possession of
civil, political and social rights is a principal element of citizenship. If one element were missing,
citizenship would be incomplete. Similarly, Beetham (1995) argues that social rights are a
necessary condition of human agency. In this tradition, social rights are seen as a precondition
of first generation rights. Swan (2001) argues that education is a precondition for liberty and
political choice. Likewise, Almquist (2005) maintains a right of suitable cultural equipment[12] as
precondition for cultural participation and other individual rights.
The central critique to all three lines of arguments is that to a large extent, second-generation
rights violate property rights, i.e., real human rights. Second-generation rights require providing
a service to those who cannot afford that service. If no one is willing to voluntarily finance these
services, second-generation rights imply the use of coercion in order to provide such services.
In such cases, second-generation rights violate property rights, as it is impossible to honor bothof them at the same time.
It should be added, that property rights are not prima facie rights that can be restricted or
balanced at discretion against some important goal, be it equality, “dignity,” or citizenship.
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Property rights are natural rights. They restrain the justifiable use of force in society. Their
infringement would violate the self-ownership or the homesteading principle and as such stand
against human nature. These violations are unjustifiable independent of any noble goals sought
to be achieved by them. In addition to this central critique, every one of the three arguments is
also susceptible to complementary criticisms.
The egalitarian argument fails, as it requires coercion to make men equal. As Erich von
Kühnelt-Leddihn (1952) has cogently pointed out, there is always a dichotomy between equalityand liberty. Sterba's (2001) argument that the poor have the right to violate the liberty of the
rich in order to satisfy their basic needs, shows the conflict between liberty and equality most
clearly. In order to argue for his goal of a more equal distribution of resources, Sterba
presupposes that there is no such thing as absolute property rights. Moreover, as a general
critique to egalitarian approaches, Rothbard (1974; 1995) points out that there is no scientific
argument that all men should be equal. Why should all men be equal? Naturally, humans have
different characteristics; everyone is unique. These natural differences obviously imply a
varying use of resources. Even efforts to create a more equal distribution of resources would
not be successful in creating more equality. Nor would it be successful in remaining that way as
human beings will continue to use the redistributed resources according to their own
inclinations and talents.
The dignity argument resembles to some extent natural right philosophy by using reason to
determine the intrinsic worth of a human being. Yet, the argument fails because it implicitly
demands that private property rights be violated in order to secure, for instance, free education
for everyone. In addition, the argumentation is problematic as no clear definition of human
dignity is provided. In respect to this reasoning, one wonders above all: Would it not be against
human dignity to violate property rights?
The argument that social rights are a precondition of other rights also fails as in order to secure
citizenship state intervention is advised. The state is to provide public education, cultural
equipment, regulate working conditions and payments. Beside the implication of coercion,
social rights are no precondition for human rights. There is no need for universal free education
or health care to enjoy property rights. I must not even be literate to enjoy the property in my
body or possessions. The only condition is that no one violates my property. On the contrary,
universal free education requires the violation of property rights.
3.3. Third-Generation Rights
Even though the list of second-generation rights already seems to be quite long, a new
category of human rights has been promoted. In a response to the argument that human rights
are too individualistic (Campbell 2004), collective or group rights have been suggested. Among
these are the rights to peace (Jones 2006), to a safe and healthy environment (Nickel 1993),
the right to development (Rich 1988) or the right to national self-determination (Seel 2001).
Third-generation rights are susceptible to the same central criticism as second-generationrights. Their application requires the violation of property rights. Moreover, third-generation
rights are rights of groups. Yet groups cannot have rights, only individuals have rights. Of
course, individuals have the right to use their property to form groups or acquire joint ownership
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of resources. However, it is simply impossible to establish an independent right of collective or
group ownership from natural law. This attempt would require that parts of persons are
collectively owned by a group, which would in turn violate the principle of self-ownership.
Consequently, there is no group right to peace. Only individuals have the right that their
property and persons not be attacked. Yet, property rights address these environmental
concerns implicitly. No one has the right to pollute someone else’s property.
Similarly, just as a group right to peace does not exist, neither does a collective right to a safeand healthy environment exist. Only individuals have the right that their property not be polluted
and destroyed. Furthermore, a right to clean water or an access to wilderness (Swan 2001)
would be a welfare right and like second-generation rights, would violate private property rights.
A right to development does not exist either. Every person has the right to develop his own
property and capacities. Yet a nation has no right to foreign aid from another nation based on a
right to development. Lastly, the right to national self-determination is a fictitious right, as well,
because collective entities cannot own rights. Some concession must be made, however,
regarding self-determination. First, individuals have the right not to be exploited by a nationalmajority. Second, every individual owns a natural right to self-determination and can join with
others to disassociate themselves from a state.
4. Differences Between Property Rights and Pseudo Human Rights
In this section I investigate the differences between property rights, i.e., human rights, and
pseudo human rights. These differences will give more weight to my assertion that property
rights and pseudo human rights are irreconcilable. Such dissimilarities concern conceptual
clarity, universality, coherency, specificity, rule of law, finiteness, response to conflicts, and
nature, as well as their influence on governments, moral space, and economic prosperity.
First, the divergence between property rights and pseudo human rights is noted in terms of
conceptual clarity. The definition of property rights is clear and precise: A property right gives
the exclusive authority of the use of the property. Pseudo human rights, however, are
ambiguous and vague. For instance, the alleged right for free basic education neither defines
what counts as education nor the quantity and quality of the education that every human
allegedly has a right to. Moreover, what is considered basic education and health care might
change. During the passing of time outstanding historical events or new scientific theories might
be included in the canon of basic education. Likewise, with the introduction of new drugs or
more effective medical treatment, health care alters as well.
The next difference lies in the universality of human rights. Property rights are universal rights.
They lie in human nature and are applicable to any human society. In fact, they are feasible in
any country at any time if people just abstain from the violation of property rights. Yet pseudo
human rights are not universal for two main reasons. First, they are not natural rights and as
such dependent on legal enactment and the provision of the state. Second, as Cranston (1973)
has shown, socio-economic rights are not possessed by virtue of being human but by virtue of being a member of a certain society. If a society is poor, there might not be enough resources
to provide basic free education or health care to everyone.
The coherency of property rights and incoherency of pseudo human rights is another main
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distinction between them. Property rights are coherent and pose no self-contradictions. For
example, the right of free speech on one’s own property does not interfere with the right of
using one’s property to call for an assembly. Quite to the contrary, pseudo human rights are not
only in conflict with property rights but also with each other. Pseudo human rights stand in
conflict with each other because there is always a limited amount of resources available to
satisfy these rights (Nickel 2006). For example, the right to health care interferes with the right
to free education and with the right to security in the event of unemployment. Logically, the
resources the government dedicates to health care cannot be dedicated to competing pseudo
human rights.
Another dissimilarity between property rights and pseudo human rights lies in their specificity.
Property rights are general and abstract, implying general rules of conduct as, for instance: it is
never allowed to steal or murder. These rules imply an absence of interference that is difficult to
visualize. Pseudo property rights, however, are not abstract notions. They are specific to a
situation and are subsequently more visible than property rights. Gordon (1998) actually
advocates that human rights should be directly related to concrete life activities. This difference
makes pseudo human rights more visualizable than property rights. The alleged right to free
basic education or a right to clean water is more visualizable than the abstractness of property
rights.
A related distinction is the rule of law in the Hayekian (1944) sense implied in property rights
and their absence under pseudo human rights. Property rights minimize the discretion left to
government. Property rights entail rules of conduct that are the same for everyone independent
of the specific circumstances. In other words, they point to general rules or formal law.
Consequently, property rights imply equality before the law. In contrast, pseudo human rights
imply certain redistribution from the rich to those who cannot afford the alleged rights. Someonehas to provide a service to those who cannot afford the right. Therefore, pseudo human rights
demand an unequal treatment before the law. Some are taxed in order to pay for the welfare of
others. The interpretation of the particular situation and person gives the government
discretion. The specific circumstances of a person call for a different treatment. Individuals
make use of the coercive measures of the state to improve their welfare. The particular
legislation and vague definitions give room for discretion by the government and violates,
consequently, the rule of law. By violating the rule of law, the traditional sense of justice in the
population is perverted. As a consequence, corruption flourishes and the population no longer
follows universal rules but tries to gain advantages by demanding and interpreting pseudo
human rights.
Furthermore, as another distinction, property rights are few, determinate, and finite. Those
rights can be summarized in the principle of self-ownership and the homesteading principle.
These two principals are similar to a corset which limits the implicit rights in property rights.
Quite to the contrary, pseudo human rights are many, indeterminate and in fact expanding
(Stoilov 2001). We live in an age in which human rights inflation devaluates property rights. The
quantity of pseudo human rights is open and not bound by any principle. Anything that is just
important enough and lies in the alleged dignity of humans is deemed as a precondition for other rights or that which makes humans more equal can in principal be advocated as a human
right.
A further discrepancy lies in the manner in which property rights and pseudo human rights
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affect conflicts. Property rights minimize conflicts. By giving each individual exclusive authority
over his body and property, conflicts are reduced.[13] Moreover, pseudo human rights create
conflicts for several reasons. First, welfare rights create conflicts with property right owners.
Property owners who do not want to pay for the welfare rights of their fellow citizens will try to
avoid that infringement of their property. Second, conflicts can occur concerning the quantity
and quality of those services or resources a vaguely defined pseudo human right implies. Third,
conflicts arise between different pseudo human rights when not enough resources are available
to meet them all. Fourth, as pseudo human rights are an open sum, conflicts are possible about
the question of which new human rights are to be added. Everyone could make the claim to
have a certain pseudo human right and use it to justify initiating coercion on another person to
provide the right.
An additional difference lies in the type of rights that property rights and pseudo human rights
are. Property rights are negative and active rights. They are negative in the sense that they
require restraint from doing certain things (Machan 1997), i.e., the non-interference with the
property of other people. They are active rights in the sense that they imply the right to do
things (Almond 1993). Everyone has the right to do with his body and property what he wants
as long as he does not violate the property of another.
Quite to the contrary, pseudo human rights are positive and passive rights. They are positive
rights in the sense that they point to positive duties (Jones 2006). For instance, the alleged right
of free medical care implies the positive duties of others to provide these medical services.
Pseudo human rights are passive rights in the sense that they are rights to have things done to
the owner of the welfare right (Almond 1993). Thus, this owner is provided with an adequate
living standard and education.
Interestingly, this clear-cut distinction between property rights and pseudo human rights has
been disputed. Beetham (1995) tries to show that property rights are also positive or active
rights, as they require actions to protect them. Government provides the protection of property
rights in the same sense as it would provide welfare rights. As a response, it must first be
pointed out that property rights can in principal, and are in practice, protected without the help
of government. People can defend themselves, put walls around their property or hire private
security guards. Second, it is as Machan (1985, 36) distinctly notes, only the “enjoyment of a
right” that needs protection. Property rights exist prior to and independent of any defense.
Third, and most importantly, property rights do not need active protection if they are respected.In contrast, pseudo human rights in order to be respected need an active intervention in order
to secure the provision of welfare goods and services.
These differences in the types of rights lead us directly to the divergent influences property
rights and pseudo human rights have upon government. As property rights are negative rights
they restrict the sphere of government. Pseudo human rights, however, give government the
authority and even the duty to provide the population with some services, be it clean water,
cultural equipment, fair wages, or medical care. Pseudo human rights, in this way, expand the
role of government in the economy requiring paternalistic and bureaucratic central agencies.
Another disparity between property rights and pseudo human rights can be found in their
effects on human responsibility. As Machan (1992) points out, property rights provide human
beings with a moral space. Inside their moral space as limited by their property rights, human
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beings can act morally and responsibly. This allows for and promotes courage, honesty,
generosity, and prudence. Pseudo human rights have the opposite effect. They restrict and
violate property rights, consequently restricting the possibility for moral action. Furthermore,
they promote irresponsible behavior with resources that are provided for by the government.
When people receive resources for free, they tend to waste those resources. When the
government guarantees the provision of these resources, the cost of wasting them will be
socialized.
This last difference leads us directly to the unlikely effects that private property rights and
pseudo human rights have upon wealth creation and economic growth. A system of well-
defined and defended private property rights fosters economic growth in several respects. First,
private property in the means of production makes economic calculation possible, as Mises
(1920) lucidly has shown. His argument is as ingenious as it is simple. If there is no private
property in the means of production there are no market prices of the means of production.
Without market prices of the means of production rational economic calculation becomes
impossible. No central planning agency could possibly command the information necessary to
coordinate a complex economy.
Second, private property rights foster economic growth because they provide incentives for
individual actors to create wealth and take care of their property. When property is privately
owned and not restricted by government, the owner of private property can fully participate in
the benefits that the property provides. A property owner bears the costs of their actions, when
their property or wealth decreases in value. Consequently, the property owner has the incentive
to take care of his property, to prevent waste, and to put it into the most value-productive uses
as determined by the consumers on the free market.
Third, secure property rights enhance incentives to save and accumulate capital, which
enhance productivity and lead to higher economic growth. In addition, secure property rights
create incentives to acquire greater skills in production for the market and earning profits. When
property rights are respected the economy grows thereby raising the standard of living. The
increased standard of living makes the fulfillment of the goals set by second-generation rights
more probable. A higher standard of living gives people the opportunity to provide for health
care, basic education, etc.. Moreover, charity tends to increase with increasing wealth thereby
providing the means for basic needs of the poor without the violation of property rights.
In contrast, pseudo human rights inhibit economic growth. By infringing upon property rights,
they make economic calculation more difficult. By enlarging the role of government and the
burden of taxation they discourage the efficient use of resources. Moreover, in addition to the
higher tax burden they create legal insecurity. Pseudo human rights are not clearly defined, and
also are changeable and augmentable. Therefore, legal insecurity is the result of the inner
contradictions and conflicts that pseudo human rights face. As a consequence, savings and
capital accumulation are discouraged. Ironically, by curbing economic growth, pseudo human
rights make the fulfillment of their goals more difficult. There are fewer resources available than
with secure property rights and higher economic growth. Thus, satisfying basic needs is moredifficult and less resources available for charity purposes.
Lastly, property rights and pseudo human rights differ in their associated political system and
philosophy. The concomitant political system to property rights is capitalism (Machan 1992).
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The concomitant political value is liberty. Indeed, liberty is implied in property rights. In this
sense Hayek (1973, 107) states: “Law, liberty, and property are an inseparable trinity.” We find
this same conclusion in the quote by Ludwig von Mises at the beginning of this essay. The
political program of classical liberalism can be reduced to property rights.
Quite to the contrary, the concomitant political system to pseudo human rights is socialism. The
intervention of the state in human affairs in order to improve society is reflected in such positive
rights as universal health care or public education. In fact, Stoilov (2001) argues that the rise of the welfare state was accompanied by the development of social and economic rights
doctrines.
The differences between property rights and pseudo human rights discussed in this section are
summarized in the following table:
Differences: Property Rights
or Human Rights
Pseudo Human
Rights
Conceptual
Clarity
Clear and precise Vague and ambiguous
Universality Transhistorial Not universal
Coherency Coherent Contradictory
Specifity Abstract and
general
Specific and problem
oriented
Rule of Law Yes No
Quantity Few and finite Many and infinite
Conflict
Resolution
Minimize Create
Type of right Negative and
active
Positive and passive
Effects on
government
Restrict Expand
Moral Space Allow Close
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Wealth Creation Foster Inhibit and destroy
Basis of social
system
Capitalism Socialism
In sum, property rights (which are human rights) and pseudo human rights contain
unbridgeable differences and are mutually exclusive. In fact, pseudo human rights destroy the
concept of rights by violating property rights and perverting the traditional meaning of justice. If
pseudo human rights and property rights are artificially set on an equal basis something similar
to the logic implied in Gresham´s Law occurs. Artificially overvalued rights, i.e. the pseudo
rights, crowd out the undervalued rights, i.e. property rights. Progressively, property rights are
neglected and violated. The inflating pseudo human rights take prevalence in society. In this
sense, Hayek (1976, 105), regards the Universal Declaration of Human Rights as “an
irresponsible game with the concept of ´right´ which could result only in destroying the respect
for it.”
5. The Defenders of Property Rights and Defenders of Pseudo Human Rights
In this section I will investigate why there have been fewer intellectual defenders of property
rights than defenders of pseudo human rights. There are several reasons for this discrepancy.
First, it is much easier to inspire people with practical and visualizable concepts than with
abstract concepts. Property rights are abstract concepts with many implications. They
guarantee the absence of an action, namely the interference with one’s property. Contrary to
property rights, pseudo human rights are more problem-specific and visualizable. Moreover,the goals that pseudo human rights aim at are an adequate living standard for all, or a clean
environment, are perceived as noble and practical. Pseudo human rights seem to provide a
solution to many burdensome problems of mankind by carrying normative weight for the use of
force.
Second, as we have seen, property rights are the “keystone” of capitalism (DiLorenzo 2004).
Property rights are correctly associated with exchange, trade, and the market economy.
Pseudo human rights, in contrast, are associated with solidarity and the welfare state. They
provide a justification of interventions into society. Logically, defenders of capitalism defendproperty rights and defenders of statism defend pseudo human rights.
Traditionally, there have been few defenders of capitalism and liberty. Lord Acton (1907, ch. 1)
observes that “[a]t all times sincere friends of freedom have been rare, and its triumphs have
been due to minorities...” Indeed, the “hegemony of the Left” over the universities is
overwhelming (Feser 2004). Consequently, the answer to our question is straightforward: As
there have been few friends of liberty among intellectuals there have been also few defenders
of property rights. However, we still have not really answered the question why there have been
fewer defenders of property rights than defenders of pseudo human rights. We just have
moved it to another level. We are now faced with the intriguing question of why the majority of
intellectuals have socialist leanings, making them advocates of pseudo human rights.
Even if we assume best intentions, like protecting people through welfare rights, it is important
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to look at the incentive structure with which intellectuals are confronted. Many intellectuals
receive part or all of their income from the government (Klein 2006). Many intellectuals are
working in the education sector, which is highly regulated and subsidized, if not outright
nationalized, by the government. By subsidizing intellectuals their number increases above the
number that would prevail on a free market. Owing their job to the government, many
intellectuals - consciously or not - tend to justify government interventions. These government
interventions are, in fact, in many cases justified by pseudo human rights. Moreover, as many
intellectuals are part of the government apparatus, they indirectly profit from the application of
interventions such as those implied in pseudo human rights. With pseudo human rights, the
power of the state increases and many intellectuals form part of the state organization.
A second reason is brought forward in Hayek's seminal 1949 article “The Intellectuals and
Socialism.” Hayek argues that many intelligent libertarians do not go into academia or other
intellectual jobs but instead go into business. Therefore, left-leaning intellectuals are over-
represented in academia.
A third reason denotes human vanity. Everyone likes to feel important. As do most people,intellectuals want to think they do something useful or important. Therefore, intellectuals hired
or subsidized by the state favor social engineering. They think they can fine-tune society and
call for the state in helping them in this noble task. Incidentally, one way to improve society in
the eyes of intellectuals is by fulfilling pseudo human rights. As their quantity, quality, and
extension are vague, someone is needed in order to decide on these delicate questions. This is
where the importance of the intellectuals enters. They help to answer these questions and also
provide justifications for these rights.
A fourth reason, is the hatred that many intellectuals nourish against capitalism. There areseveral reasons for this hatred. One is the myth of a falling standard of living during the
industrial revolution.[14] Another cause of the resentment is, as Mises (2006) notes, caused by
frustrated ambitions. Many intellectuals, even though they regard themselves as better
educated, earn much less than many entrepreneurs. They envy[15] the success of the
entrepreneurs and managers that earn more than they do. Subsequently, they look for a
scapegoat for their failure and find it in capitalism. As a result, they resent the system, which
allows uneducated entrepreneurs to earn much more than the well-educated and highly
intelligent intellectuals. Related to Mises´argument is Nozick´s (1986) explanation of the
opposition of intellectuals to capitalism. Nozick maintains that intellectuals have been successfulin their school years and rewarded by the central school authority while they have failed socially
in a spontaneous market environment. Consequently, they tend to favor a central organization
to the market economy.
A fifth reason is that many intellectuals do not understand the market economy (Hayek 1949).
As they do not understand it, they see the market economy as something suspicious that must
be controlled and channeled into controllable lines by pseudo human rights. They do not grasp
the importance of the rule of law and property rights for civilization. They are also unaware of
the consequences that the alternatives to capitalism entail. Moreover, they do not know thedetrimental effects interventionism has on wealth creation. Nor do they comprehend what
adverse effects pseudo human rights have on society.
Sixth, the ideal at which socialists are aiming is more appealing than capitalism. The portrait of
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a socialist ideal with the brush strokes of pseudo human rights is more appealing and promising
than the realistic picture of a capitalistic society. Consequently, in the marketing of ideas,
defenders of socialism have been more successful.
Conclusion
Murray Rothbard makes the daring claim that all human rights can be formulated as a variationof property rights. This analysis affirms this claim. Property rights are natural rights resting on
the twin axioms of self-ownership and the homesteading principle.
Any human right can be deduced from property rights. In fact, there are no separate human
rights distinct from property rights. Instead, human rights are entailed in and limited by property
rights. Any alleged right that infringes property rights and jumps the boundaries set by them,
cannot be a human right. By violating property rights, the alleged right violates rights firmly
rooted in human nature. These alleged human rights that infringe on human rights are
therefore called pseudo human rights.
The distinction between property rights and pseudo human rights could not be greater.
Property rights are clearly defined, universal, coherent, abstract, general, limited, and stand for
the rule of law. They are negative and active rights that minimize conflicts, allow for moral
space, restrict government, and foster economic growth. In contrast, pseudo human rights are
vaguely defined, situation-dependent, contradictory, specific, open for augmentation, and
contrast with the rule of law. They are positive and passive rights that breed conflict, restrict
moral responsibility, expand the role of government, and inhibit economic growth.
With regard to these distinctions, we must ask why there have been more defenders of propertyrights than pseudo human rights. The solution lies in the concomitant political systems of these
rights. Property rights are the pillars of a capitalist society. Pseudo human rights promote
socialist measures. Socialism is still the dream of many intellectuals. As such, many intellectuals
use the language of human rights to give moral weight to social welfare goals. Indeed, pseudo
human rights give intellectuals a task to work upon. They must find justifications, refine
definitions, create additional rights, and quarrel about quantity and quality of pseudo human
rights. Consequently, pseudo human rights give intellectuals a role in society. Property rights, in
contrast, are less visualizable and less academically inspiring. They restrict government and
consequently the space for government-employed intellectuals. All this explains why
intellectuals tend to be defenders of pseudo human rights and why these kinds of human rights
are a growing industry. This inflation of the human rights concept is like a cancer in the flesh of
a capitalistic society devaluating its basis: property rights. Hopefully, this cancer can be treated
by a new inspiring liberal utopia as Hayek (1949) describes: “a liberal Utopia, . . . which seems
neither a mere defense of things as they are nor a diluted kind of socialism, but a truly liberal
radicalism.”
That being said, we are still confronted daily with disturbing images from around the world that
call for remedy. Though some might interpret a property-rights-based criterion for defininghuman rights as uncaring, we should be reminded that the distress we see in the news is
aggravated because property rights and human rights derived from them have not always been
secured. If anything, a free-market society that protects such rights will most likely flourish and
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have more to share with those less fortunate. A clear understanding of property rights simply
does not imply apathy about the plight of others. If anything, such an understanding is pre-
requisite for creating the appropriate social changes to address these misfortunes. Inflating the
moral currency of human rights to include advocacy of welfare rights can only add further
injustice to those situations in which changes are sought.
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Footnotes
[1] Rand, The Virtue of Selfishness, p. 91.
[2] Mises, Liberalism – In the Classical Tradition, p. 19.
[3] See Lacey (2008).
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[4] See Jacobs (2008).
[5] See Dugger (2008).
[6] See Charbonneau (2008). U.N. says Darfur dead may be 300,000 as Sudan denies.
[7] Property rights can be defined as the exclusive authority over an object. They imply a right
to use the object, to its services and the right to transfer it to other persons (Alchian, 2008).
[8] The alternative to self-ownership is slavery. Slavery, however, does not fulfill the
universalization test of an ethical theory. There would be different rules for different people, as
some people would be masters and others would be slaves. Therefore, slavery is unethical and
must be held as a violation of natural law.
[9] For a libertarian account of the natural law meaning of just punishment, see Rothbard
(1998).
[10] Government infringes on private property by regulations, expropriations, forced labor, or
taxation. Classical liberals maintain that taxation in order to fulfill government’s function of
protecting private property would be legitimate. Libertarian anarchists regard any taxation as a
violation of property rights.
[11] For the difference between positive and negative liberty see Berlin (1969).
[12] Almqvist defines cultural equipment as skills (e.g. how to write a motion), tools (e.g.
computer) and know-how (e.g. computer literacy).
[13] So called public property rights do not resolve conflicts very well. The existence of publicstreets, jobs or television lead to conflicts about their uses. Shall the streets be used by
immigrants or by a demonstration for animal rights? However, private property rights, which we
mean in this article as general property rights, solve those problems.
[14] For an analysis of this legend see Hayek (1963).
[15] See Schoeck (1987) for the importance of envy for the human race.
Philipp Bagus, is a professor at Rey Juan Carlos University. He is also a past winner of The
Sir John M. Templeton Fellowships Essay Contest .