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The implications in law are that the best a judge for the economy is to minimize transaction costs, such as bureaucracy. Court decisions that impose additional procedural obligations, such as ''Goldberg v. Kelly'' (1969), can only detract from overall wealth and efficient economic behavior. The Coase theorem implicitly holds that much of the legal attempts to improve the economy are illusory, because there is no way to improve over the combination of clear legal entitlements and no government interference.
The implications in law are that the best a judge for the economy is to minimize transaction costs, such as bureaucracy. Court decisions that impose additional procedural obligations, such as ''Goldberg v. Kelly'' (1969), can only detract from overall wealth and efficient economic behavior. The Coase theorem implicitly holds that much of the legal attempts to improve the economy are illusory, because there is no way to improve over the combination of clear legal entitlements and no government interference.
The implications in economics are that virtually all government regulations create inefficiencies and decrease optimal economic activity. Socialism is a mistake, and communism is an even bigger mistake. The gap between rich and poor is a meaningless statistic.
The implications in economics are that governments must intervene to lower transaction costs where feasible.
The implications in politics or philosophy are that, in a free society, it is almost irrelevant who has wealth and who does not with respect to economic activity. Useful or desired economic activity will occur regardless of who owns property or wealth. A list of the wealthiest individuals (Forbes 500) is meaningless, as wealth will flow to efficient activity regardless of who controls the money.
The implications in politics or philosophy are that, in a free society, it is almost irrelevant who has wealth and who does not with respect to economic activity. Useful or desired economic activity will occur regardless of who owns property or wealth. A list of the wealthiest individuals (Forbes 500) is meaningless, as wealth will flow to efficient activity regardless of who controls the money.