"The Not So Wild, Wild West: Property Rights on the Frontier" by Terry Anderson and Peter Hill challenges the conventional portrayal of the American West as a place of chaotic lawlessness. Instead, the book argues that the West was characterized by the development of robust systems of property rights and mutual cooperation among settlers, miners, ranchers, and farmers.
Anderson and Hill examine how individuals and communities in the American West established rules and institutions to manage resources, resolve disputes, and ensure mutual protection. The authors focus on various aspects of frontier life, including land claims, water rights, livestock management, and mining. They demonstrate that, contrary to popular belief, these systems were often orderly and effective, even in the absence of strong government presence.
The book delves into how property rights evolved in response to the specific needs and conditions of the West. It illustrates that property rights were not just imposed from the top-down by governments but often emerged organically from the bottom-up as settlers developed systems that reflected their needs and circumstances. In fact, the authors argue that in many instances, the introduction of formal government intervention actually undermined the effective systems of property rights and governance that had already been established organically by settlers and local communities. For example:
Mining Camps - In the early stages of mining rushes, miners created their own rules and regulations for claiming and working mines. These rules were effective in resolving disputes and were respected by the mining community. When the U.S. government later imposed its legal system and regulations, it often disregarded the established norms and systems that miners had developed. This imposition led to increased conflicts and legal disputes, undermining the efficiency of the previously self-regulated system.
Land Claims and Homesteading - Before formal government land policies were enforced, settlers in the West often established their own systems for claiming and distributing land, based on mutual recognition of claims and local needs. The implementation of the Homestead Act and other formal land policies did not always recognize these informal claims. The government’s one-size-fits-all approach to land distribution often led to confusion, conflict over land rights, and inefficiencies.
Water Rights - In the arid West, water was a critical resource, and settlers developed the doctrine of prior appropriation, which allocated water rights based on "first in time, first in right." Government involvement in water rights, often through bureaucratic allocation or regulatory frameworks, sometimes conflicted with the established local systems, leading to overuse, disputes, and reduced effectiveness in water management.
Livestock Management - Ranchers initially operated under an open range system with community-enforced norms for managing and identifying livestock, which worked effectively for that context. As the government began to implement fencing laws and encourage land enclosure, it disrupted the existing systems, leading to increased conflicts and a shift away from the cooperative practices that had been effective in the open range system.
Anderson and Hill’s examples in "The Not So Wild, Wild West" suggest that the imposition of government laws and regulations often disrupted well-functioning, organically developed systems of property rights and governance. The book argues for the effectiveness of bottom-up, locally developed institutions in managing resources and resolving disputes, especially in contrast to top-down government interventions. The authors highlight the importance of understanding and respecting local customs, practices, and institutions when formalizing property rights and governance systems. A view I whole heartedly endorse.
Anderson and Hill offer a refreshing and well-researched perspective that counters the stereotype of the American West as lawless and chaotic. Their argument that effective systems of property rights emerged organically on the frontier contributes significantly to the historical understanding of the American West.
The book excellently illustrates the crucial role of property rights in economic development. It aligns with Austrian Economics principles, emphasizing the importance of property rights in fostering market exchanges, reducing conflicts, and managing resources efficiently.
The authors provide a wealth of historical examples and case studies, making their arguments concrete and relatable. These examples effectively demonstrate how various forms of property rights evolved in different contexts.
One final story that I learned from the book and find fascinating. Yellowstone, established in 1872, was the first national park in the United States and is often cited as a successful example of government intervention in preserving natural beauty and resources. The official story states that it was created as a response to concerns that the area's natural wonders were at risk of being spoiled by private development.
Anderson and Hill however point out that it was lobbying by the rail titans at the time that led to its creation. These rail lines were increasingly concerned that an entrepreneur would homestead certainly high value pieces of land and begin charging admission to visit. This would reduce the incentive for individuals to visit Yellowstone for vacation and therefore lower the usage of the rail usage. While this makes intuitive sense, it is not a story I had ever heard before.
Background on the Authors:
Terry Anderson is known for his work in environmental economics and free-market environmentalism. He is a senior fellow at the Hoover Institution and the president of the Property and Environment Research Center (PERC). His work often explores how property rights and market mechanisms can solve environmental problems.
Peter Hill is also an economist. Hill has contributed significantly to the field of free-market environmentalism. He, along with Anderson, has been instrumental in developing the idea that property rights are essential for optimal resource use and environmental conservation.
"The Not So Wild, Wild West" by Anderson and Hill is a thought-provoking and informative read that offers a unique perspective on the history of the American West. Its detailed analysis of how property rights contributed to order and prosperity on the frontier makes it a valuable contribution to the study of economic history and property rights. The book is particularly insightful for those interested in understanding the role of property rights in economic development from an Austrian Economics viewpoint.