4 ms·

That had to be one of the most half-baked articles Ive seen out of "The Economist," and Ive read their stuff on and off for years. They identify the symptoms co

That had to be one of the most half-baked articles Ive seen out of "The Economist," and Ive read their stuff on and off for years. They identify the symptoms correctly, and then spend 1000 words misleading you on the cause, so they can sell you "The Fix." Here's the real problems: 1. Rent-seeking behavior by the land-owning generation, seeking to retire and live off rental income and a reverse mortgage, instead of building generational wealth. 2. Rent-seeking behavior by local councils and cities, all but demanding bribes and kickbacks; they hold up permitting for building anything beyond single-family dwelling. 3. Rent-seeking behavior by the majority holders of capital - the banks. Because a majority of properties are subject to mortgage, this has allowed for massive speculation, in funny money, on limited amounts of real property. This drives up prices. 4. Rent-seeking behavior by all levels of government. Property taxes are the most efficient means of destroying wealth. To be brief, the rents are too damn high! Theres no law you can write that will fix these issues, either. It will bloat and overheat until it collapses like a cake in the oven.

perl4ever 7y ago
The phrase "rent seeking" is a technical term with a meaning. How can the government be accused of it? When private entities engage in rent seeking, they are manipulating the government for profit. And when private entities do things that do not involve manipulating the government, then how can it be rent seeking? Rent seeking does not mean literally, simply, "seeking rent". I know people like to say the meaning of words change, but you have to be talking about the same thing as other people using the same word.
- beatgammit 7y ago
  As far as I understand it, rent seeking means increasing your share of existing wealth without creating any in the process. Raising rent generally on physical properties is one way of doing that, as is mucking about with government to get tax dollars and whatnot coming your way. As I see it, governments themselves are often rent seeking operations. By increasing taxes, they increase their share of the wealth of the nation, and depending on how that money is used, it could very well be considered rent seeking. Usually the term is used for business sectors interacting with government to get those tax dollars, but I don't think that's the only valid use.
  - perl4ever 7y ago
    In order for a concept to be meaningful, it has to have things that fall within and outside of it. If the normal functioning of the government is rent seeking, then everything is rent seeking. If everything is rent seeking, then the term doesn't distinguish anything in reality from anything else. You can't have a discussion about rent seeking without the context that there is such a thing as legitimate government that functions in such a way as to provide public goods.
- deleted 7y ago
  [deleted]

perl4ever 7y ago

The phrase "rent seeking" is a technical term with a meaning. How can the government be accused of it? When private entities engage in rent seeking, they are manipulating the government for profit. And when private entities do things that do not involve manipulating the government, then how can it be rent seeking? Rent seeking does not mean literally, simply, "seeking rent". I know people like to say the meaning of words change, but you have to be talking about the same thing as other people using the same word.

beatgammit 7y ago
As far as I understand it, rent seeking means increasing your share of existing wealth without creating any in the process. Raising rent generally on physical properties is one way of doing that, as is mucking about with government to get tax dollars and whatnot coming your way. As I see it, governments themselves are often rent seeking operations. By increasing taxes, they increase their share of the wealth of the nation, and depending on how that money is used, it could very well be considered rent seeking. Usually the term is used for business sectors interacting with government to get those tax dollars, but I don't think that's the only valid use.
- perl4ever 7y ago
  In order for a concept to be meaningful, it has to have things that fall within and outside of it. If the normal functioning of the government is rent seeking, then everything is rent seeking. If everything is rent seeking, then the term doesn't distinguish anything in reality from anything else. You can't have a discussion about rent seeking without the context that there is such a thing as legitimate government that functions in such a way as to provide public goods.
deleted 7y ago
[deleted]