Saturday, November 21, 2020

The Coase Theorem in One Image (And then the Walter Block response)

Of course, as Dr. Walter Block would surely point out, if the guy getting paid to leave is on the property of the other, therein exists a fundamental problem for the Coase Theorem, it ignores initial respect for private property.

After writing the above sentence, I decided to email Dr. Block, the preeminent Austrian school critic of the Coase Theorem to actually get his thoughts on the tweet.

This is his response:

Dear Bob:

On property rights, Coase’s main “contribution” to economic science, he is worse than the commies. At least the latter has a  theory of property rights: they belonged to the proletariat. For Coase, they shift like a weather vane, depending upon a judges arbitrary opinion of interpersonal comparisons of utility.

Best regards,


Walter E. Block, Ph.D.

Harold E. Wirth Eminent Scholar Endowed Chair and Professor of Economics      

Loyola University New Orleans


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