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A good way to frame this behavior that makes clear why it is revolting: http://en.wikipedia.org/wiki/Rent-seeking http://en.wikipedia.org/wiki/Rent-seeking The

A good way to frame this behavior that makes clear why it is revolting: http://en.wikipedia.org/wiki/Rent-seeking http://en.wikipedia.org/wiki/Rent-seeking The economic concept of rent is where a firm in an advantageous position uses that position to extract wealth without doing anything productive. Much of the divisiveness between the two dominant U.S. political parties can be explained in these terms: The Left thinks that corporate privilege enables rent-seeking behavior (e.g. finance), while the Right thinks that government privilege enables rent-seeking behavior (e.g. regulatory capture, public sector unions). It may seem like all economic activity is rent-seeking, and this is true to an extent -- everyone wants to sit back and let prior work bring in income today. Competition is what checks rent-seeking -- such behavior often goes hand-in-hand with a monopoly position, which is why you see it where there is heavy government involvement (e.g. patents, public sector services). What I would like to see is the calling-out of rent-seeking behavior from both sides. This is the way forward to a more united, wholesome, just economic / political system.

yummyfajitas 16y ago
...everyone wants to sit back and let prior work bring in income today This isn't rent seeking. This is simply enjoying rents from value creation. Rent seeking is when actively seek out rents by engaging in unproductive/harmful activities in order to continue receiving rents. For example, getting a patent to prevent others from building similar works is rent seeking [1]. Or forming a union to prevent others from undercutting you is rent seeking. Similarly, creating regulatory requirements that crush small players (e.g., Walmart's attempts to raise the minimum wage, Phillip Morris attempts to increase tobacco regulation) is also rent seeking. [1] Of course, patents might still be beneficial if the rents extracted are smaller than the value created which would not otherwise be created in the absence of patents.
scrod 16y ago
>What I would like to see is the calling-out of rent-seeking behavior from both sides. Oh yes, certainly. We should ensure fairness to the fullest extent by making workers fight just as hard for their wages as the largest multinational corporations do for profit. Really, who do they think they are, shamelessly organizing themselves to guarantee access to medical care, education, basic living necessities? Thank goodness for our discerning even-handedness.

yummyfajitas 16y ago

...everyone wants to sit back and let prior work bring in income today This isn't rent seeking. This is simply enjoying rents from value creation. Rent seeking is when actively seek out rents by engaging in unproductive/harmful activities in order to continue receiving rents. For example, getting a patent to prevent others from building similar works is rent seeking [1]. Or forming a union to prevent others from undercutting you is rent seeking. Similarly, creating regulatory requirements that crush small players (e.g., Walmart's attempts to raise the minimum wage, Phillip Morris attempts to increase tobacco regulation) is also rent seeking. [1] Of course, patents might still be beneficial if the rents extracted are smaller than the value created which would not otherwise be created in the absence of patents.

scrod 16y ago

>What I would like to see is the calling-out of rent-seeking behavior from both sides. Oh yes, certainly. We should ensure fairness to the fullest extent by making workers fight just as hard for their wages as the largest multinational corporations do for profit. Really, who do they think they are, shamelessly organizing themselves to guarantee access to medical care, education, basic living necessities? Thank goodness for our discerning even-handedness.