The “block economy” theory suggests that excessive private ownership of property can create obstacles to economic growth and prosperity. Private property rights can stifle progress and make it difficult to complete public works projects. The theory has sparked controversy and debate.
A block economy is so stifled by private property and private property rights that it ceases to use the resources at its disposal efficiently for the greater good of the population. The term was coined by author and professor Michael Heller, who wrote a book by that name, which was published in 2008. The book has been extensively reviewed and sparked much debate.
Heller’s controversial theory suggests that excessive private ownership of property can create insurmountable obstacles to economic growth and prosperity. Use the owners illustration as a gatekeeper. Because gatekeepers have the right to grant and restrict access, they hold great power and can encourage or discourage progress. As the number of gatekeepers increases, so does the difficulty of navigating through a block economy.
Of course, private property comes in many forms to create a block economy. Heller targets some of it, including real estate and intellectual property. In one case, he argues that intellectual property rights, through the use of patents, can stifle innovations in health care, thus creating a block economy, at least on a microscopic scale. Private property rights can stifle progress by making it more difficult to get public works projects, such as roads and, as Heller notes on the book leaflet, even footbridges, to finish.
Any book that attacks private property rights will be controversial. Some, especially conservatives, will see The Gridlock Economy as an attack on capitalism by an academic elitist. Private property rights are the hallmarks of a capitalist society. While it cannot be denied that much of what Heller proposes goes against the tenets of capitalism, arguing that his motivation for writing the book may be short-sighted. In one piece, Heller wrote about the idea for writing The Gridlock Economy as a result of the motivation he received after learning that a life-saving drug was having trouble getting it to market.
Heller points out that onerous regulation and excessive privatization both play a role in the economy of gridlock. In this, she argues, both liberals and conservatives can find a cause to cling to.
Protect your devices with Threat Protection by NordVPN
