Entitlement theory is a theory of distributive justice and private property created by Robert Nozick in his book Anarchy, State, and Utopia. The theory is Nozick's attempt to describe "justice in holdings" (Nozick 1974:150)—or what can be said about and done with the property people own when viewed from a principle of justice.
Nozick's entitlement theory comprises 3 main principles:
Nozick believes that if the world were wholly just, only the first two principles would be needed, as "the following inductive definition would exhaustively cover the subject of justice in holdings":
Thus, entitlement theory would imply "a distribution is just if everyone is entitled to the holdings they possess under the distribution" (Nozick 1974:151). Unfortunately, not everyone follows these rules: "some people steal from others, or defraud them, or enslave them, seizing their product and preventing them from living as they choose, or forcibly exclude others from competing in exchanges" (Nozick 1974:152). Thus the third principle of rectification is needed.
Entitlement theory is based on John Locke's ideas. Under entitlement theory, people are represented as ends in themselves and equals, as Kant claimed, though different people may own (i.e. be entitled to) different amounts of property. Nozick's ideas create a strong system of private property and a free-market economy. The only just transaction is a voluntary one. Taxation of the rich to support full robust social programs for the poor are unjust because the state is acquiring money by force instead of through a voluntary transaction. However, Nozick's ideas can endorse the creation of a minimal social program for the poor. Every person in the state of nature can achieve a certain level of welfare according to their own abilities. This level of welfare, while not equal, must be maintained via the Lockean Proviso. Given the justice of acquisition condition and the Lockean Proviso, "It is conceivable that in the normal operation of the economy, a private property regime might at some times, for some people, fail to provide access to this level of welfare when left to itself. If so, then justice—as the libertarian understands it—demands that the state act to correct the distribution of welfare generated by the spontaneous play of market forces."