Friday, April 3, 2015

Freedom to Exclude

And you didn't have to stoop so low
Have your friends collect your records
And then change your number
I guess I don't need that though
Now you're just somebody that I used to know
--Gotye

The right to discriminate can also be called freedom to exclude. The 'reason' (skin color, religious beliefs, non-paying customer, etc) doesn't matter. Assigning a judge to determine 'right' or 'wrong' reasons for exclusion plainly leads to problems.

Discrimination and exclusion are central to property rights. Ownership must include the ability to exclude others from using property. If owners cannot exclude others from using the property, then they do not own it.

Lessening the negative effects of discrimination involves reducing barriers to entry in industries that discriminate--so that entrepreneurs can exploit the stupid discrimination decisions of others. This means cutting, not increasing, regulations and interventions that discourage competition and protect franchises of operators that discriminate in unwise ways.

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