Wealth and property rights save lives

The Free Press learned the wrong lesson from the earthquakes in Haiti and Chile. The devastating differences between these countries are not due to government enactment and enforcement of stricter building codes but rather to differences in wealth and property rights protection. Chile ranks in the top 30 percent of wealthy countries while Haiti lingers at the bottom of the list. Haitians barely afford basic shelter while Chileans can demand (and fund) buildings resistant to earthquakes. The Haitian government could regulate strict codes but who would be able to afford it?

Closely related to their ranks in wealth are their ranks in securing property rights. Only three countries provide less protection for property rights than Haiti. This means builders in Haiti have no incentive to invest in their property because at any time, it could be taken away. Who would invest in a building that could be taken away on a bureaucratic whim?

Strong property rights and wealth save more lives than government regulations devised by bureaucrats catering to special interests. Americans would be wise to keep this in mind whenever Congress is in session.

[Letter to the Editor - Detroit Free Press. Submitted 03/03/2010.]