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What role does private property play in a market economy?

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Private property is one of the most fundamental concepts in a market economy. Without it the entire concept of a market fails. It goes like this. The basic assumption is that almost everything in the world is owned or controlled by someone. read more

Private property rights are important to economic development because: Recognized private property rights provide the legal certainty necessary for individuals to commit resources to ventures. The threat of confiscation, by either private individuals or public officials, undermines confidence in market activity and limits investment possibilities. read more

Yet many countries impose regulations that weaken property rights on the mere whiff of an external cost. Regulation affects economic activity because it interferes with private property rights. It does so by attempting to modify, supplant, or replace market outcomes with outcomes mandated by government. read more

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