Microeconomics Question from Walter E. Williams:Edit
Evaluate the following: The way to get people to keep future generations in mind as they make current decision concerning the use of scarce natural resources is to allow them to hold private property rights over these resources which they can transfer. How would your answer differ if transfer rights were denied?
Property rights give entitlement to future profits, encouraging the owners to preserve the resource providing the wealth. Future incomes can be expressed through present value calculations, and then transferred. (EX: Home sale prices reflect the PV of rents in the future that would be paid to acquire a similar space.) If transfer of property rights is denied, it would provide an incentive for current owners to reap all possible profit from the existing resources as soon as possible, leaving nothing for the future, as the future has no value.
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