Quotes About Rent-seeking

Economists have a name for these activities: they call them rent seeking, getting income not as a reward to creating wealth but by grabbing a larger share of the wealth that would otherwise have been produced without their effort. (We'll give a fuller definition of the concept of rent seeking

The key is to somehow find a way of tackling rent-seeking, crony capitalism, and corruption - legal and illegal - and build fairer, more equal society without compromising innovation or entrepreneurship.

Individual nations have offered their own contributions to income inequality - financial deregulation and upper-bracket tax cuts in the United States; insider privatization in Russia; rent-seeking in regulated industries in India and Mexico.

Corporations do not pay taxes, they collect them, passing the burden to consumers as a cost of production. And corporate taxation is a feast of rent-seeking - a cornucopia of credits, exemptions and other subsidies conferred by the political class on favored, and grateful, corporations.

Broadly shared progress can be achieved with policies that are designed specifically to benefit consumers and workers. And such policies need not even include redistributive taxation, which many workers oppose. Rather, they can focus on ways to encourage competition and discourage rent-seeking.

A lot of my book, 'The Price of Inequality,' is about why there has been an increase in rent-seeking.

The permutations of rent-seeking are as many as the administrative state is vast. Rent-seeking is the activity of attempting to increase one's income without increasing the quantity or quality of the goods or services offered to customers. It is the attempt to manipulate public power for private advantage—to get government to improve your economic circumstances by conferring a benefit on you or a handicap on your competitors.

At this point, the Grumpy Economist becomes the Incredulous Economist: "If the central problem is rent-seeking, abuse of the power of the state to deliver economic goods to the wealthy and politically powerful, how in the world is more government the answer?

Further, in countries where wealth comes from rent-seeking, political patronage, or regulatory capture (which, I remind the reader, is how the powerful and the insiders use regulation to scam the public, or red tape to slow down competition), wealth is seen as zero-sum.*2

You can tell people who come from countries with rent seeking; they think that business is zero-sum: wealth is money taken from others.

Neoliberal enzymes aim to sedate the industrial host into believing that the financial sector is part of the real economy, not external to it and extractive. That is the first myth. Modern national income and GDP accounting formats treat tollbooth systems and other rent seeking as "output.