Stamate Andreas,PhD Lecturer

BucharestUniversity of Economic Science

Department of International Business and Economics

A PRIVATE PROPERTY RIGHTS APPROACH ON THE SOCIAL ASPECTS OF A FREE MARKET ECONOMY

Faculty of International Business and Economics

Address: 6, Piata Romana, 1st district, 010374, Romania

Phone: +4.021.319.19.00

E-mail: andreas.stamate@rei.ase.ro

ABSTRACT.It is often presumed that a free market economy (by this meaning a system in which can be found exclusive private property rights on the means of production) fails at (always) providing social welfare. This is a no-turning point into discussion and it is also a point where the seeds of government intervention seep in. The criterion used for this type of presumptions is what we generally acknowledge as utilitarianism. However, utilitarianism is only one particular criterion from many others, or only one side of the coin. The present paper is focused on the other side of the coin, namely the private property rights criterion (as developed by Murray Rothbard and Hans Hermann Hoppe). Using this analytical and ethical tool, I will try to develop the social character of a free market economy. From the very beginning the paper will summarize the basic elements of free markets. After this, a short journey into the economic and ethical problems of the social welfare concept will prepare the reader for the section where I state the case for a social market economy from a purely private property rights approach.

Received: June, 2012

1st Revision: September, 2012

Accepted: December, 2012

JEL Classification:B53, D6, I3, P14

Keywords: free market economy, private property rights, social welfare, ethics