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There's a good reason that "rent-seeking" is one of the biggest insults you can hurl at a business model.
by kibwen 2y ago
There's a good reason that "rent-seeking" is one of the biggest insults you can hurl at a business model.
- robertlagrant 2y agoYes, because it's trying to make your business as legally necessary as a tax. It's to do with regulation, not renting things.
- kibwen 2y agoNo, it's to do with being a useless middleman who extracts wealth without serving any productive economic purpose. Regulation isn't required in the slightest.
- robertlagrant 2y agoHow do you do that without laws to keep your useless business' product/service in business?
- kibwen 2y agoMarkets naturally tend towards monopoly. The idea that monopolistic incumbents are always disrupted in laissez-faire markets is incorrect; incumbents have plenty of non-regulatory levers to keep themselves on top once they stay on top: kickbacks to suppliers and distributors, industrial espionage/sabotage, slanderous ad campaigns, cornering the markets for inputs, forming cartels with monopolistic producers of complementary products, poaching key employees, etc. If you think the government is the only barrier to competition, you haven't given this enough thought.