Property from A Libertarian Perspective

Property is a central economic institution of any society, and private property is the central institution of a free society - David Friedman.

Libertarianism is all about freedom, and when we look deeper, libertarians support property ownership and believe that real freedom lies in acquiring it. However, there is a conflict between the two.

Libertarian Vision on Property

It is important to understand that from a libertarian vision when individuals set out to acquire property, they are essentially limiting freedom; although property enhances freedom, acquiring it can limit freedom. When we look at it from the perspective of Hobbes, unchecked liberty leads to chaos, as everyone is free to do anything, including harming others. True peace and prosperity require individuals to surrender some of this unrestricted liberty to respect the property rights of others, which, although limiting freedom in some ways, ultimately brings significant moral and freedom-enhancing benefits.

One such example of limiting freedom is seen in the recent ruling of Kerala High Court, which said that when a property is kept not for trade but for investment purposes gets sold, the gain which will be falling under it will come under the head ‘Capital Gains’ and such a transaction will only be taxable under the capital gain and not for the adventure of trade. This significantly curbs the freedom of individuals in the taxation sphere relating to property rights. Hence giving rise to a conflict.

Conclusion

When it comes to property and libertarianism, libertarians believe in having freedom to acquire property ownership and exercising rather than having any kind of restrain on it.