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REICH the New Property YLJ 1967

REICH the New Property YLJ 1967

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The Yale Law Journal Company, Inc.
The New PropertyAuthor(s): Charles A. ReichSource:
The Yale Law Journal,
Vol. 73, No. 5 (Apr., 1964), pp. 733-787Published by: The Yale Law Journal Company, Inc.Stable URL:
Accessed: 01/10/2009 06:25
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available athttp://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unlessyou have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and youmay use content in the JSTOR archive only for your personal, non-commercial use.Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained athttp://www.jstor.org/action/showPublisher?publisherCode=ylj.Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printedpage of such transmission.JSTOR is a not-for-profit organization founded in 1995 to build trusted digital archives for scholarship. We work with thescholarly community to preserve their work and the materials they rely upon, and to build a common research platform thatpromotes the discovery and use of these resources. For more information about JSTOR, please contact support@jstor.org.
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THEYALELAWJOURNAL
VOLUME3 APRIL 1964NUMBER5
THE NEWPROPERTY
CHARLESA.REICH*
THE
institution calledpropertyguardsthe troubledboundarybetweenin-dividual man and the state. It is not theonlyguardian;manyotherinstitutions,laws,andpracticesserve as well.Butinasocietythatchieflyvaluesmaterialwell-being,thepowerto control aparticularportionof thatwell-beingistheveryfoundationofindividuality.Oneofthemostimportant developmentsintheUnitedStatesduringthepastdecade has beentheemergenceofgovernmentasamajorsource ofwealth.Government isagigantic syphon.It drawsinrevenueandpower,andpoursforth wealth:money,benefits,services,contracts,franchises,andlicenses. Government hasalwayshadthis function.But whileinearlytimesit wasminor,today'sdistributionoflargessisonavast,imperialscale.Thevaluablesdispensedbygovernmenttakemanyforms,buttheyall shareone characteristic.Theyaresteadilytakingtheplaceoftraditional formsofwealth-formswhichare heldasprivate property.Socialinsurancesubsti-tutes forsavings;agovernmentcontractreplacesa businessman'scustomersandgoodwill.The wealthofmore and moreAmericansdepends uponarela-tionshiptogovernment. Increasingly,Americansliveongovernmentlargess-allocatedby governmentonitsownterms,andheldbyrecipientssubjecttoconditions whichexpress"thepublicinterest."Thegrowthofgovernmentlargess, accompaniedbya distinctivesystemoflaw,ishavingprofoundconsequences.It affectstheunderpinningsof in-dividualismandindependence.Itinfluences theworkingsoftheBill ofRights.Ithasanimpacton thepowerofprivateinterests,intheirrelation to eachother and togovernment.Itishelpingto createa newsociety.This article isanattempttoexplorethesechanges.Itbeginswith anex-aminationofthe nature ofgovernmentlargess.Second,it reviews thesystemoflaw,substantive andprocedural,thathasemerged.Third,it examines someoftheconsequences,to theindividual,toprivateinterests,and tosociety.Fourth,it considers the functionsofpropertyand theirrelationshipto "thepublicinterest."Finally,itturns to thefuture of individualisminthe newsocietythatiscoming.Theobjectistopresentan overview-awayoflookingatmanyseeminglyunrelatedproblems. Inevitably,such an effort mustbeincompleteandtentative. Butit islong pasttime thatwebeganlookingatthe transformationtaking placearoundus.
*Associate ProfessorofLaw,YaleUniversity.
 
THE YALELAWJOURNAL
I.
THELARGESS OFGOVERNMENT
A.TheFormsofGovernment-CreatedWealthThevaluableswhichderivefromrelationshipstogovernmentareofmanykinds. Someprimarilyconcernindividuals;othersflowtobusinessesandorganizations.Some are obvious formsofwealth,such asdirectpaymentsofmoney,whileothers,likelicensesandfranchises,areindirectlyvaluable.Incomeandbenefits.Foralargenumber ofpeople,governmentisadirectsource ofincomealthoughtheyhold nopublic job.Theireligibilityarisesfromlegalstatus.Examplesare SocialSecuritybenefits,unemploymentcom-pensation,aid todependentchildren,veteransbenefits,andthe wholeschemeofstateandlocal welfare.Theserepresentaprincipalsource ofincome toasubstantialsegmentofthecommunity.Totalfederal,state,and localsocialwelfareexpendituresin1961were almostfifty-eightbilliondollars.lJobs. Morethanninemillionpersonsreceive incomefrompublicfundsbecausetheyaredirectlyemployedbyfederal, state,or localgovernment.2Thesize ofthepubliclyemployedworkingforce hasincreasedsteadilysincethefoundingof theUnitedStates,and seemslikelytokeeponincreasing.Ifthethree to fourmillionpersonsemployedindefenseindustries,3whichexistmainlyongovernmentfunds,areadded totheninemilliondirectly employed,itmaybeestimated that fifteen totwenty percentof the laborforcereceivesitsprimaryincome fromgovernment.4Occupationallicenses.Licenses arerequiredbeforeonemay engageinmanykinds ofwork,frompracticingmedicinetoguidinghuntersthroughthewoods.5Evenoccupationswhichrequirelittleeducation ortraining,likethat oflongshoremen,oftenaresubjectto strictlicensing.6Suchlicenses,whicharedispensedby government,makeitpossiblefortheirholders tore-ceive what isordinarilytheir chiefsource ofincome.
1.U.S.DEP'TOFCOMMERCE,TATISTICAL BSTRACTOFTHEUNITEDSTATES283,
Table374(1963).2.Id.at435,Table567.
3. In1961 twasestimatedhatupto7,500,000mericanswereemployed ydefense.
This is10%of theentirelaborforce,andsupportsbetween19,500,000and22,500,000people.Four millioncomprisethenon-governmentalworkingforce,and3,500,000work
directlyfor theDefenseDepartment.Itspayrollis more thantwice thepayrolloftheentire automobilendustry.N.Y.Times,May21,1961,p. 48,col.1.4.The totalnumber oftheemployedcivilian laborforce in,March,1963wasesti-
mated to be67,148,000.U.S.
DEP'T
OFCOMMERCE,p.cit.supranote1,at219,table286.5.Seegenerally GELLHORN,NDIVIDUALREEDOMNDGOVERNMENTALESTRAINTS105-51(1956);COUNCILOFSTATEGOVERNMENTS,CCUPATIONALICENSINGLEGISLATION
IN THESTATES
(1952).Typicalstatutesare:WYO.
STAT.
ANN.tit.23,?55(1957)
(guides);CAL.BUS.& PROF.CODE?5615-81(landscapearchitects),6500-6625(bar-bers);PA. STAT.ANN.tit.63,??281.1-81.32(pawnbrokers),471-79.20(funeraldirec-tors) (1959).SeealsoNote,Entrance andDisciplinaryRequirementsforOccupationalLicensesin
California,14STAN. L.REV.533(1962).6.N.J.STAT.ANN.,WaterfrontCommissionAct,tit.32,ch.23,??19-24(steve-
dores),??27-28(longshoremen)(1953).SeeN.Y.Times,April 10, 1962,p.86,cols. 7-8.
734[Vol.73:733

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