Coase and Kelo: Omnious Parallels and a Reply to Lott on Rothbard on Coase
In its Kelo decision, the Supreme Court upheld Connecticut’s decision to use its eminent domain powers to take property from one set of private owners and give it to another set of private owners. The State defended this plan on the grounds that the former group of owners was using its property in a less efficient manner than would the latter. There are ominous parallels between this decision, which amounts to no more than thinly veiled theft, and the works of Ronald Coase and the “Law and Economics” movement spawned by his 1960 publication.