Private Property

“We're all pilgrims on the same journey-but some pilgrims have better road maps.”- Nelson DeMille

When the stock market fell last year there were many who blamed the evils of capitalism. Somehow people keep falling into the trap of thinking that socialism is "good" for people and private property capitalism is "bad". Yet history shows repeatedly that the reverse is true. For example, The Volokh Conspiracy has a Thanksgiving article entitled How Private Property Saved the Pilgrims.

"The Pilgrims nearly starved to death because of collectivism and eventually saved themselves by adopting a system of private property. Economist Benjamin Powell tells the story here:"

In 1620 the Plymouth Plantation was founded with a system of communal property rights. Food and supplies were held in common and then distributed based on equality and need as determined by Plantation officials. People received the same rations whether or not they contributed to producing the food, and residents were forbidden from producing their own food. Governor William Bradford, in his 1647 history, Of Plymouth Plantation, wrote that this system was found to breed much confusion and discontent and retard much employment that would have been to their benefit and comfort. The problem was that young men, that were most able and fit for labour,did repine that they should spend their time and strength to work for other men’s wives and children without any recompense. Because of the poor incentives, little food was produced.

Faced with potential starvation in the spring of 1623, the colony decided to implement a new economic system. Every family was assigned a private parcel of land. They could then keep all they grew for themselves, but now they alone were responsible for feeding themselves. While not a complete private property system, the move away from communal ownership had dramatic results.

This change, Bradford wrote, had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been. Giving people economic incentives changed their behavior. Once the new system of property rights was in place, the women now went willingly into the field, and took their little ones with them to set corn; which before would allege weakness and inability.

Once the Pilgrims in the Plymouth Plantation abandoned their communal economic system and adopted one with greater individual property rights, they never again faced the starvation and food shortages of the first three years. It was only after allowing greater property rights that they could feast without worrying that famine was just around the corner.

For a more detailed account, see this 1999 article by Tom Bethell.

Bottom Line

Russia experience a similar problem under the rule of Stalin. The collective farm fields were not producing enough food to feed the country. So families were given a small plot of land for their own use and these small plots kept the citizens alive.