Whatever Happened to Justice Ch 14

The system of liberty encompasses both legal and economic aspects. Common law represents the legal side, while free markets represent the economic side.

A system where individuals are free to produce and sell goods and services without excessive government intervention.

The driving force behind a free market; individuals are motivated to produce goods and services that are in demand because they seek to earn money. This serves as a natural mechanism for producing what people need and want.

The invisible hand, an idea conceptualized by Adam Smith, refers to the self-regulating effect of the free market. It demonstrates that individuals pursuing their own self-interest, like earning money, unintentionally benefit society by producing goods and services that are in demand.

Common law, a system of jurisprudence developed through judicial precedents, is viewed as a method for uncovering the natural laws that govern human civilization. These natural laws are considered fundamental principles that underpin human behavior and societal order.

The way people interact in a free market reflects the needs and desires of society. The system acts as a natural feedback loop: businesses respond to consumer demand, and consumers influence what gets produced.

Human society, like any ecosystem, operates based on certain laws or principles. These principles are not subjective opinions but objective truths that govern human behavior and the consequences of our actions.

An economy is a complex, dynamic, and interconnected system that is like a biological ecosystem: it functions through interactions between individuals and groups, with consequences extending beyond the initial action. Like a forest or a reef, these systems are fragile and susceptible to harm from external forces.

Government intervention in an economy, even with good intentions, can have unintended consequences. The harm might not be directly seen at the point of intervention but can manifest in other areas of the system.

The concept that laws should limit the consequences of harmful actions to the individual responsible, preventing their spread and protecting the system.

The study of law should precede the study of economics. This is because economic phenomena are symptoms caused by underlying legal systems.

The tendency to forget or neglect the connection between law and economics can lead to a flawed understanding of the economic system.

Government-controlled currency systems, such as legal tender laws, can have negative consequences on an economy, leading to economic instability and hardship.

The fundamental laws of economics should be respected, as they mirror natural laws of the universe. Obeying these laws leads to prosperity, while violating them results in negative consequences.

Government intervention, particularly through excessive regulation, does not create wealth or add to a nation's capital; it instead forces resources into artificial channels, potentially hindering natural economic growth.