Posner's Wealth Maximization "theory

The economic analysis of law is a field that law meets with economics. As a leading scholar in the society of economic analysis, Richard Posner carried out a theory called "wealth maximum" by the inspiration of "Coase theorem". The theory tries to prove that if the law can produce profits to the maximum with the lowest cost, then it will be the desirable legal system. With this idea, Posner analyzed different legal phenomena and restructure law. The basic values of legal world were replaced by the efficiency value. The "wealth maximum "theory was criticized just for ruining the traditional legal ideas. Dr .Posner rationalize "wealth maximum" in different ways so as to prevent this theory from being criticized. His theory which has rationality as well as flaws reflect his pragmatism, liberalism and utilitarism, and it is the land where the efficiency value grows in. If we exaggerate the role of "wealth maximum", a series of negative results maybe show up. These negative results include the inclination of social Darwinism , the disappearance of law or the fade of law's divinity, and the inefficiency of market mechanism. So we should observe this theory objectively, accept the theory's creativities and point out its shortcomings, make good use of its advantages while removing its undesirable effect. To realize the coexistence of efficiency value and the justice value,the writer attempt to revise the "wealth maximum " theory.