Is is becoming common for those reporting on the proposed bullet train between Dallas and Houston to claim that it is a conflict between the free market and property rights. For example, the website KERA in north Texas states that the project is “creating heated conversation about the free market vs. private property rights.” Curbed.com states that the train “represents the collision of two things Texans hold dear: private property rights and an unrestrained free market.”
These claims demonstrate a profound lack of understanding regarding the free market and property rights. A free market requires property rights in order to function; property rights require a free market in order to be protected. Not surprisingly, neither of the articles mentioned above attempt to explain the nature of the alleged collision–no rational explanation is possible.
A free market is one in which individuals can create and trade material values as they judge best. Property rights protect our freedom to create, use, keep, trade, and dispose of material values. A free market and property rights are inseparable.
Texas Central, the private company behind the bullet train, is seeking to use eminent domain to acquire the land needed for the project. But eminent domain would not be legal in a truly free market because it is a violation of property rights. Eminent domain forces owners to sell their property, regardless of their own judgment and desires.
In a truly free market, interactions between individuals (and businesses) requires the voluntary cooperation of each party involved. Individuals are free to engage in or abstain from interactions with others. But Texas Central, through the use of eminent domain, seeks to nullify the decisions of property owners. To call this an “unrestrained free market” is a gross misrepresentation and intellectually dishonest.
If someone broke into your house and stole your property, no rational person would equate the theft with an “unrestrained free market.” When property is taken from its rightful owner without his consent, that action is theft. This is true whether the property is taken by a burglar or a railroad company using eminent domain.
The bullet train raises many important issues. But we will not make good decisions if the discussion is filled with misrepresentations.