Law And Economics

Law and Economics A Tract Book Essay By Anthony J. Fejfar, B.A., J.D., Esq., Coif © Copyright 2007 by Anthony J. Fejfar Some Law and Economic theorists argue that the purpose of law is to promote economic efficiency.

I argue that economic efficiency is simply another word for the

idea of Utility, and that Utility should be broadly defined as “maximization of Value.” The whole purpose of an economy is to produce goods and services by maximizing Value. Value represents both tangible and intangible goods and services.\ I argue that for a rational person, one’s highest value, that which has the greatest utility, is one’s own autonomy and rational self interest. Additionally, it is rational to choose liberty as a value where reciprocally one values not only one’s own autonomy and rational self interest, but also the autonomy and rational self interest of others as long as it does not conflict with my own. This reciprocal notion of liberty is accomplished through the notion of equality before the law. Thus, I argue that law which produce equality before the law are in fact economically efficient as long as they are reasonable. If the market produces authentic liberty without legal regulation, then the law should not bar that liberty from taking place. Therefore, it makes sense that the First Amendment right of Freedom of Speech is largely unregulated because the “market” of free speech produces liberty. On the other hand, it makes sense that criminal laws prevent theft, whether corporate or

otherwise, because this denies one equality before the law, and of course denies one’s liberty to use his or her property as he or she chooses.