Craig Richardson Longer Quotations

There are three effects of attenuating private property rights that ultimately change individuals' perceptions in a drastic way. First, there is the loss of trust in the government to enforce the law, which dramatically affects foreign investors' views of the country. Second, the loss of property titles dramatically limits the amount of borrowing and entrepreneurial activity by disrupting the banking sector. Individuals no longer can offer banks their property as collateral for a loan. Third, there is the loss in the incentive to pass along entrepreneurial knowledge, and work initiatives are sharply stymied as well, since one's investment is not retained.