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Rent seeking describes an economic situation where existing wealth is taken without creating new wealth in exchange for it, such as offering a competitively pri
by missedthecue 5y ago
Rent seeking describes an economic situation where existing wealth is taken without creating new wealth in exchange for it, such as offering a competitively priced product or service. This is what happens when taxation occurs. It doesn't matter what the money is spent on after it is taken; that doesn't change that fact that rent seeking occurred.
If a monopoly company raises prices 50% and then gives all of the proceeds to Doctors Without Borders, or heck the government itself, it doesn't suddenly make it not rent seeking.
- mandmandam 5y ago> It doesn't matter what the money is spent on after it is taken; that doesn't change that fact that rent seeking occurred. It does matter. It matters a whole lot. Saying it doesn't reduces your argument to a purely semantic one; and a very stretched, very pointless argument it is.
- missedthecue 5y agoIt's not pointless. The point is that competition is healthy, whether it's in regard to the cost of milk or the cost of taxes. Monopolies are economically inefficient and make us poorer on net.