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rent seeking =/= profit maximizing. government has this funny way of working better when the incentives of the leaders align with the living standards of the g

• notahacker 16y ago
  Given market imperfections, rent seeking behaviour is a logical consequence of any attempt to maximise yield. My point was that political favour in Singapore is entrenched, without the deadweight losses brought about by lobbying or changes in policy. It's not that the patronage of the Singaporean government doesn't introduce imbalance into the economy and society, it's simply that it's a stable imbalance and its monopolies are very well managed. I'm sure we can at least agree on the latter part of that sentence. I'm not convinced the incentives of Singapore's governing elite need to be particularly closely aligned with the living standards of the governed (at least not _now_ given the ruling party's almost impregnable position). Their achievement in raising the living standards is more a testament to their vision and industry than internal pressures. In general, rent seeking behaviour is at least as prevalent in less-democratic states, just less competitive and more likely to favour the already-rich