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Why do states love to promote rent seeking behavior? They ban Tesla and promote cabs, ISPs, etc. This is especially silly in a State that is trying to have a si

• yock 12y ago
  Why do states love to promote rent seeking behavior? Because they receive the rent. Rather, the individuals in government receive the rent.
• A1kmm 12y ago
  Usually states make laws in good faith to solve real or perceived problems like unsafe taxis and unfit drivers. Then those who get through the process lobby to raise the barriers higher to protect their 'investment' in the process and reduce competition. Lobbyists are experts at regulatory capture; they might have previously had a government job and by close friends with regulators / legislators, they might fund the campaigns of those in power, and they are willing to spend real money - far more than the other side usually - to tell their side of the story. Uber is a single company that is most likely globally bigger than most of the taxi cartels - so when they are on the outside trying to get in, they are the first time there has been significant lobbying for less regulation.
• baddox 12y ago
  > Why do states love to promote rent seeking behavior? Because a "state" is really just a group of individuals with significantly more power than the average individual, and the easiest way for them to benefit themselves is to use that power to promote rent seeking behavior. I would be surprised if they didn't promote rent seeking behavior.