4 ms·

Not a very good article, but I agree with the idea that rent-seeking should be discouraged and we need to fight against it. As an entrepreneur/self-employed pe

by socrates1998 8y ago

Not a very good article, but I agree with the idea that rent-seeking should be discouraged and we need to fight against it. As an entrepreneur/self-employed person who 100% does not have any special relationships in government and relies almost solely on referrals, it is very frustrating to see people "create" wealth because they have special relationships with government officials. In my industry, education, it's pretty rampant. Textbook deals are particularly horrendous. Even on the local level it can be pretty bad. At a local charter school near me, a math teacher working at the same school is the number one recommended math tutor for students in HIS program. While they are not allowed to be his current students, he has a very parasitic relationship with them. He charges a very local high rate ($100+ per hour) to students that he has taught math to. It just blows my mind how corrupt this is. I have heard him bragging about making thousands of dollars a month and more than doubling his school salary from students in a math/science program that he is an administrator/teacher for. And this is at a very competitive math and science charter school who routinely sends people to the top math and science colleges in the country. I mean, I get it, people want to make money, but this type of behavior is just disgusting.

TAForObvReasons 8y ago
> As an entrepreneur/self-employed person who 100% does not have any special relationships in government and relies almost solely on referrals, it is very frustrating to see people "create" wealth because they have special relationships with government officials. So you "create wealth" based on your special relationships to other people (who end up helping you by giving referrals and other assistance) and believe that is ok, but you don't find it acceptable when others do the same? The only difference, it would seem, is that the other people have deeper relationships to people in government than you.
- EvanAnderson 8y ago
  Government officials need to be impartial. Their personal relationships shouldn't come to bear in the decisions they make to spend public money.
  - bena 8y ago
    Or even to who gets expedited through certain processes. I've seen that as well. Someone who worked in government and moved into the private sector who then used his government contacts to help along his contracting business. Ironically, he was a "small government Republican", when his entire livelihood was dependent on the government and corruption.
- socrates1998 8y ago
  Government officials represent ALL citizens and are supposed to get the best deal for the taxpayer. They are not spending their own money. They are spending my money and all other citizens money. If you looked at the deals that textbook companies get, you would realize that they sure as hell aren't negotiated well (or at all honestly). These deals are done at expensive dinners and trips paid for by the textbook companies. Or the companies donate to candidates campaigns, then the elected officials make sure these companies get the textbook deals, regardless of value or quality. Government officials have an obligation to the citizens to be impartial to prevent this type of corruption. My customers only represent themselves and their money. They are free to do whatever they want with it.
  - ryanx435 8y ago
    From an outsiders perspective, this seems like a false distinction that you are using to rationalize your failure to get government contracts.
    - tathougies 8y ago
      From an outsiders perspective, this seems like corruption.
    - jdietrich 8y ago
      If a private company squanders money through corrupt contracts, I have options. I can choose to withdraw my support for what they're doing and punish the company financially by selling their stock. I can short their stock, tell everyone "this company is wasting money on corrupt contracts" and profit from the market reaction. I can choose to buy products and services from a more efficient company that isn't dumping money to their cronies. I can set up my own company and compete with them. If the government squanders money through corrupt practices, I have no opt-out. I can say "I'm not paying my taxes until you fix this corruption problem", but men with guns will lock me in a cage. If a sufficiently large proportion of the electorate support or ignore that corrupt government, they can just take money from my paycheck and give it to their cronies with impunity. Corporate corruption is bad, but it is fundamentally different to government corruption.
- danbolt 8y ago
  I think it’s a bit different when the “other people” are subsidized by taxpayer money. I think the parent commenter would be certainly fine with other people doing the same, provided they’re not massaging government officials with luxuries.
kazinator 8y ago
Tutoring isn't rent-seeking. It is not in any way analogous to charging money for some commons that would otherwise be free (like the toll-chain-across-the-river example). If the parents feel that $100 is excessive, they can find another tutor. That teacher doesn't have a monopoly on mathematics. > And this is at a very competitive math and science charter school who routinely sends people to the top math and science colleges in the country. So that tutor helps do the job, and the rich parents find the rate acceptable.
- nostromo 8y ago
  It's not rent seeking, it's a conflict of interest. Paying teachers and administrators for services creates a conflict of interest when it's time to grade papers, recommend students for advanced courses, or graduate students.
  - gaius 8y ago
    It's not rent seeking, it's a conflict of interest. Like giving away needlessly complicated software and charging for support
    - ak39 8y ago
      Such as? (Genuinely curious)
      - deleted 8y ago
        [deleted]
      - patrickg_zill 8y ago
        SAP. Oracle's applications. Some of what IBM sells. Etc
        ak39 8y ago
        SAP, Oracle or IBM software is hardly give away. They will cost you an arm and a leg to get and then the rest of your body for maintaining them. I thought gaius may be referring to free or open source software?

TAForObvReasons 8y ago

> As an entrepreneur/self-employed person who 100% does not have any special relationships in government and relies almost solely on referrals, it is very frustrating to see people "create" wealth because they have special relationships with government officials. So you "create wealth" based on your special relationships to other people (who end up helping you by giving referrals and other assistance) and believe that is ok, but you don't find it acceptable when others do the same? The only difference, it would seem, is that the other people have deeper relationships to people in government than you.

EvanAnderson 8y ago
Government officials need to be impartial. Their personal relationships shouldn't come to bear in the decisions they make to spend public money.
- bena 8y ago
  Or even to who gets expedited through certain processes. I've seen that as well. Someone who worked in government and moved into the private sector who then used his government contacts to help along his contracting business. Ironically, he was a "small government Republican", when his entire livelihood was dependent on the government and corruption.
socrates1998 8y ago
Government officials represent ALL citizens and are supposed to get the best deal for the taxpayer. They are not spending their own money. They are spending my money and all other citizens money. If you looked at the deals that textbook companies get, you would realize that they sure as hell aren't negotiated well (or at all honestly). These deals are done at expensive dinners and trips paid for by the textbook companies. Or the companies donate to candidates campaigns, then the elected officials make sure these companies get the textbook deals, regardless of value or quality. Government officials have an obligation to the citizens to be impartial to prevent this type of corruption. My customers only represent themselves and their money. They are free to do whatever they want with it.
- ryanx435 8y ago
  From an outsiders perspective, this seems like a false distinction that you are using to rationalize your failure to get government contracts.
  - tathougies 8y ago
    From an outsiders perspective, this seems like corruption.
  - jdietrich 8y ago
    If a private company squanders money through corrupt contracts, I have options. I can choose to withdraw my support for what they're doing and punish the company financially by selling their stock. I can short their stock, tell everyone "this company is wasting money on corrupt contracts" and profit from the market reaction. I can choose to buy products and services from a more efficient company that isn't dumping money to their cronies. I can set up my own company and compete with them. If the government squanders money through corrupt practices, I have no opt-out. I can say "I'm not paying my taxes until you fix this corruption problem", but men with guns will lock me in a cage. If a sufficiently large proportion of the electorate support or ignore that corrupt government, they can just take money from my paycheck and give it to their cronies with impunity. Corporate corruption is bad, but it is fundamentally different to government corruption.
danbolt 8y ago
I think it’s a bit different when the “other people” are subsidized by taxpayer money. I think the parent commenter would be certainly fine with other people doing the same, provided they’re not massaging government officials with luxuries.

kazinator 8y ago

Tutoring isn't rent-seeking. It is not in any way analogous to charging money for some commons that would otherwise be free (like the toll-chain-across-the-river example). If the parents feel that $100 is excessive, they can find another tutor. That teacher doesn't have a monopoly on mathematics. > And this is at a very competitive math and science charter school who routinely sends people to the top math and science colleges in the country. So that tutor helps do the job, and the rich parents find the rate acceptable.

nostromo 8y ago
It's not rent seeking, it's a conflict of interest. Paying teachers and administrators for services creates a conflict of interest when it's time to grade papers, recommend students for advanced courses, or graduate students.
- gaius 8y ago
  It's not rent seeking, it's a conflict of interest. Like giving away needlessly complicated software and charging for support
  - ak39 8y ago
    Such as? (Genuinely curious)
    - deleted 8y ago
      [deleted]
    - patrickg_zill 8y ago
      SAP. Oracle's applications. Some of what IBM sells. Etc
      - ak39 8y ago
        SAP, Oracle or IBM software is hardly give away. They will cost you an arm and a leg to get and then the rest of your body for maintaining them. I thought gaius may be referring to free or open source software?