Property relations are rightfully considered the foundation of the economic system. Due to them, all transactions take place in any markets. At the same time, economic and legal property should be distinguished.
Property allows us to understand which of the people controls the factors of production, or, more simply, has economic power. This concept helps to determine exactly who receives the income and how much, and also to justify the relationship of the labor force with the instruments. For example, if property did not exist, then any worker could take the machine to his home.
Such relationships allow covering all aspects of economic activity. Ownership determines the nature of consumption and use of the product created in the production process, its distribution and exchange. The interests of different strata of the population largely depend on it. Everyone has their own interests regarding property objects, so conflicts often arise, some of which even turn into wars.
Relationship between legal and economic property
Accordingly, in order to avoid many problems, the property right must be legally secured, that is, it must be officially confirmed that a certain thing belongs to a certain person. Thus, the legal essence is manifested, the basis of which is the state. It manifests itself through the appropriation of any spiritual or material values.
Economic and legal property are interrelated elements of one system, which, although they can exist separately, are of practical importance only in symbiosis. A person may have rights to an object, but not possess it at all, or, on the contrary, have an object in his hands, but not have the right to use it.
Forms of ownership
Individual property is the ownership by an individual of any object (labor, real estate, means of production, clothing, and so on). Personal property refers to objects that are used to meet personal needs. If the main goal is to make a profit, then this form of ownership is called individual-personal.
There are also collective forms. For example, partnership property. Its essence lies in the unification of individuals and legal entities, as well as their factors of production for joint economic activities. Moreover, each person owns a certain share of the capital.
Shareholding or corporate ownership sets the rules of ownership for the share capital only. Its peculiarity lies in the symbiosis of collective and individual forms of ownership.
