In a Libertarian Society, Some People End up With Much More Wealth Than Others, Perhaps Just by Inheriting It, Essay Example

In libertarian society individual freedom is the basic value that undergoes all social relations, economic exchanges, as well as the political and government system. Libertarians believe that free market system and voluntary cooperation between people stands above the intimidation put forth by the state. They believe that the predominant concern of the state should not be to redistribute wealth, promote culture, or help small businesses, but merely the protection of individual rights and citizens, thus letting them pursue their own goals in a natural way. However, libertarian society implies completely free market economy, which has proven to be natural and effective throughout the history. Consequently, it brings up stronger property rights and smaller government, which may create certain inequality in terms of wealth distribution. In libertarian society the inheritance system is completely free of determination. However, libertarians argue that in case of individual’s death, if there is no bequest, ‘natural’ heirs do not necessarily inherit the property, for the rest of the society is also entitled to it. Therefore, it is unfair that some people work for their welfare and their family, and others simply take the money for granted.

Libertarians believe that small government will bring better results than a big government, for it will lead to greater wealth, less poverty, and more diverse society, which will make people happier in the end. Libertarian society implies that people have a right to possessions, including wealth, they have acquired by voluntary transfer from other individuals, who obviously had a right to those possessions. Moreover, people are entitled to possessions they have formed themselves, utilizing resources to which they had a preceding right or resources to which nobody else has a prior claim. It refers to the resources that were unused in the past and do not belong to anybody. Thus, under the libertarian system, lazy, incompetent individuals can easily receive wealth and belongings from legitimately wealthy people through voluntary transfer, like gift or inheritance. However, libertarians are strongly opposed to inheritance taxes. Consequently, if the libertarian inheritance system is implemented by society, then wealthy individuals would have would be able to give a sufficient amount of wealth to their lazy or incompetent offspring if that is their will. After the transfer is completed, these heirs can legitimately dispose the wealth. Usually, the offspring are rather lazy and only moderately competent, but they acquire wealth as a result of their personal connections with already wealthy individuals. On the other hand, hard-working and extremely competent people without such connections get rather modest wages if they are capable of finding paid employment. Thus, the wealth is distributed to those who did not deserve and earn it, creating an equality of outcome and a disincentive to productivity. This overthrows the need to work, for people work in order to ensure their families’ welfare, but one does not have to work if he can simply wait for inheritance.

All in all, it appears that under libertarian society and free market economy everyone will be granted more wealth and possessions. Taxation will be eliminated and people will fund their money on voluntary bases. However, under this system, lazy and incompetent people will be granted more wealth they did not work for and did not deserve. Thus, I think government should give a hand in wealth distribution and decide who needs welfare.

Works Cited

Erreygers, Guido, and Toon Vandevelde. Is Inheritance Legitimate?: Ethical and Economic Aspects of Wealth Transfers. Springer, 1997.

Smith, James. “Should Differences in Income and Wealth Matter?” Review of Social Economy 63 (2005).

Swan, George. The Quick, the Dead, and the Libertarian: An Essay on Some Libertarian Inheritance Theories. Libertarian Alliance, 1999.