Republished as “Legislation and Law in a Free Society,” Mises Daily (Feb. 25, 2010). See archived comments below.
For a more in depth treatment of these issues, see “A Libertarian Theory of Contract: Title Transfer, Binding Promises, and Inalienability,” in Legal Foundations of a Free Society (Houston, Texas: Papinian Press, 2023).
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From the Archives:
“Legislation and Law in a Free Society,” 45 The Freeman: Ideas on Liberty 561 (September 1995)
Legislation and Law in a Free Society
By N. Stephan Kinsella • September 1995 • Volume: 45 • Issue: 9
Mr. Kinsella practices law with Schnader, Harrison, Segal & Lewis in Philadelphia. This article is adapted from a longer essay forthcoming in the Journal of Libertarian Studies, which contains detailed references to the authors and works cited here.
Libertarians and classical liberals have long sought to explain what sorts of laws we should have in a free society. But we have often neglected the study of what sort of legal system is appropriate for developing a proper body of law.
Historically, in the common law of England, Roman law, and the Law Merchant, law was formed in large part in thousands of judicial decisions. In these so-called “decentralized law-finding systems,” the law evolved as judges, arbitrators, or other jurists discovered legal principles applicable to specific factual situations, building upon legal principles previously discovered, and statutes, or centralized law, played a relatively minor role. Today, however, statutes passed by the legislature are becoming the primary source of law, and law tends to be thought of as being identical to legislation. Yet legislation-based systems cannot be expected to develop law compatible with a free society.
Certainty, which includes clarity of and stability in the law, is necessary so that we are able to plan for the future. Often it is thought that certainty will be increased when the law is written and enunciated by a legislature, for example in the civil codes of modern civil-law systems.
As the late Italian legal theorist Bruno Leoni pointed out, however, there is much more certainty in a decentralized legal system than in a centralized, legislation-based system. When the legislature has the ability to change the law from day to day, we can never be sure what rules will apply tomorrow. By contrast, judicial decisions are much less able to reduce legal certainty than is legislation.
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