Wednesday, February 20, 2013

Private Property Takings in China

Today in Law & Economics I will go over the economic incentives of the government taking private property.  Here in the US, the 5th Amendment of the US Constitution states that “…nor shall private property be taken for public use, without just compensation.”

Here is a recent article from The Wall Street Journal about the Chinese government taking private property for private use without just compensation - which is exactly opposite of the US Constitution. As you read through this article you can see how this policy will lead to overall economic inefficiency.  From the US legal perspective, the infringement of property rights is not new in China, as reported by The New York Times in 2010.

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