Posner "Wealth Maximization" Theory Of The Enlightenment Of Our Country

The law and economics are cross subjects between laws and economics. Bosner who proposed the Wealth Maximization Theory is treated as an outstanding scholar in the field of law and economics. As one of the most distinguished legal economists since 1970s, he not merely has deep ground on theoretical legal professional knowledge and also it is commendable that Bosner has significantly reach judicial practical experiences. The experience of work in the court made his theory not inane theory any more but rather reflected more about the law as it is in the real society. It can be concluded that the final objective for studying his theory is to guide practice of social justice on the ground that the economics established by Bosner is a fruit combining the research outcomes and practices. To be honest, the judicial construction in China has met kinds of challenges during these thirty years. Fortunately, the law and economics of Bosner provided us with a special economic analysis angle for the research on resolving judicial predicaments in the process of reform and opening for market-oriented economy.This article explores the theoretical sources of Bosner legal economics mainly through analyzing the Wealth Maximization Theory and completely understanding the essence of law and economics in order to discard the false and retain the truth during criticism and also so as to refine the excellent results which are beneficial for our current legal construction. Moreover, this article studies variety of preconditions which gave rise to the law and economic theory of Bosner from the initial sparkles of economic factors originated from the Utilitarian Theories of Law, then to the development of institutional economics creating the technical support institutionally for the development of law economic and ultimately to the emergence of the Neo-institutional Economics represented by Coase. Simultaneously, research paper pointed at the theory of Transaction-Cost innovationally to provide huge convenience for Bosner putting forward the Wealth Maximization Theory. This theory generally means that the rights can be entitled to the people who regarded these rights as the fondest rights as to minimize the transaction cost. Therefore, enabling resources application to attain the best effect is what this Wealth Maximization chases and it emphasizes that the laws should protect the pursuit of interest so as that the laws are beneficial to distribute social resources efficiently. The function of laws is to offer a systematic guarantee for achieving this best resource distribution and to make resources obtain the maximization of wealth benefit for the people who cherish the rights. The Wealth Maximization Theory of Bosner breaks the hedges of researches implemented by traditional jurists. He applied the cost-benefit measure which is a new view of economic analysis method to study legal problems. However, he merely argued the reasonability of Wealth Maximization Theory in the economic aspect so that this theory ignored the politics, sociology, history and so forth which exist in fact evolving the variety of legal value. This ignorance mentioned above is the reason why the criticism for this Bosner theory is inevitable. On the other side, the Wealth Maximization Theory has its inherent shortages and the crisis caused by facing real society. Nevertheless, it should be concerned that this weakness can not conceal the advantages and value of this maximization theory, especially the application of practice in concrete Legal system can identify more that Wealth Maximization Theory has its special existence value. Currently, our domestic legal construction is not perfect so that we should hold open mind and critically accept positive quality of the Wealth Maximization Theory of Bosner to have an expectation of absorbing essence of law and economics, which can bring inspirations for the legal construction of China under the circumstance of market-oriented economy.