3 ms·
This is definitely not a good example of 'rent seeking'. 'Rent seeking' is real-estate. You buy a property, you seek 'rent' for the rights to access it. It's
by jariel 6y ago
This is definitely not a good example of 'rent seeking'.
'Rent seeking' is real-estate.
You buy a property, you seek 'rent' for the rights to access it.
It's that simple.
It's considered different than other economic activity because it's not productive in nature.
Edit:
1) From Investoopedia: "Economic rent is the income earned from utilization of resource ownership. Entities that own resources can lend them to earn interest rents, lease them to earn rental income, or they may utilize their resources in other income-producing ways."
2) Here is Carl Marx agreeing with literally Adam Smith "Adam Smith correctly defines rent as “the price paid for the use of land” ([O.U.P., Vol. I, p. 162; Garnier,] t, I, p. 299) - in 'Theories of Surplus Value'.
Renting out a plot of land is the easiest, simplest, most obvious example of rent-seeking.