How The Rule Of Law Promotes Prosperity

The term “rule of law” is often used in political and economic contexts, but seldom explained. 

The “rule of law” is another way of saying that laws, as they are written, are applied equally to everyone. 

If you break a law, it doesn’t matter how wealthy, connected, or powerful you are: you face the consequences. 

When followed, the rule of law leads to a more just and prosperous society. 

Civil disputes are more likely to be resolved peacefully. 

And in business, people are more willing to enter into contracts if they have a high degree of confidence that those contracts will be honored – or that they will be compensated appropriately if they’re broken. 

The rule of law in politics can be seen around the world when there are peaceful transitions of power following election. 

It even governs behavior between countries as well, as in the case of World Trade Organization disputes or mutually agreed upon free trade agreements. 

And while it can be tempting to bend the rule of law in specific instances that seem especially unjust, the benefits to society are maximized when we follow the law as it is written