Without property rights, human flourishing is impossible. Without property rights, starvation and misery are the inevitable results. Consider Venezuela as a stark example.
In the 1990s, Venezuela was the wealthiest country in Latin America. Today, millions are starving, electricity and water are rationed, and the nation’s hospitals lack basic supplies. Inflation is nearly 2,000 percent and unemployment is close to 25 percent. The spiral into chaos and misery was precipitated by the abrogation of property rights.
In 1999, socialist Hugo Chavez was elected president. He nationalized much of the nation’s agricultural businesses (including all farmland), most major oil projects, much of the banking industry, the nation’s largest steel mill, the nation’s largest telecommunications company, the nation’s largest power producer, and many other companies. In short, the government simply seized a large part of the nation’s economic production.
Stripped of their property, the Venezuelan people no longer have the means to produce the values that they want and need. If the government can’t or won’t supply basic needs, they lack the means to produce those values themselves. Instead, they depend on the sale of oil and a massive welfare system.
What was once a wealthy and flourishing country has descended to third-world status.
While Venezuela is a rare example of regression, it is hardly the only example of what happens to human flourishing when property rights are violated. The contrast between North Korea and South Korea provides another stark example.
It is not a mere coincidence that human flourishing and respect for property rights go hand in hand. Property rights recognize and protect the social conditions necessary for humans to produce the values that life requires. They recognize and protect the freedom of individuals to take that actions that they believe will enhance their lives. Without that freedom, flourishing is impossible for both individuals and for a nation.