ECON 337 Lecture Notes - Lecture 14: Caveat Emptor, Eminent Domain, Primogeniture
Document Summary
The basic ideas on property rights of the british colonial era remained in the new country. There had been only small changes relative to the pre-revolution period (e. g. abolition of primogeniture and perpetual entailment). Common law was responsive to business"s needs. Common law dictates that a neighbor cannot interfere with the enjoyment of another neighbor"s property. congestion, etc. Economic growth (commercialization) creates negative externalities smoke, noise, Strict imposition of ancient lights would have inhibited growth especially in cities and so courts did not impose these laws for the sake of economic development. This is an example of how common law contributed to growth and development of early america. States could seize property in the case of non-payment of taxes which ensured the state a tax base upon which it could borrow. This allowed states to develop redistributive policies that were useful for economic growth such as the public provision of education.
