Rent Seeking Is Government/Business Collusion Benefiting Special Interests And Hurting The General Interest
First, watch this short video https://www.youtube.com/watch?v=95pyLE_ZsDg Mostly summarized from article: Rent Seeking, David R. Henderson, econlib.org People are said to be rent seeking when they try to obtain benefits from the government to give them special privileges, especially to help increase their or their organization’s income. They typically do so by getting a tax break, subsidy, regulation, or import protection for a good they produce. … Companies seek tax breaks from state governments when building a new factory. Companies get subsidies from government for politically favored products such as those for creating solar energy. Licensed electricians and doctors lobby to keep regulations in place that restrict competition from unlicensed electricians and doctors. Steel producers seek tariffs and quota restrictions on imports of steel. … Rent-seeking expenditures cause overall economy inefficiency. For example, a steel firm spends $1 million lobbying for restrictions on steel imports, seeking a revenue gain of $2 million. The revenue gain of $2 million is reduced by the $1 million in lobbying costs resulting in a net gain of $1 million. Such an expenditure is rational from the narrow viewpoint of the firm that spends it. But the overall economy is $1 million poorer because of the rent seeking lobbying costs. … Another term for rent seeking is crony capitalism. Rent seeking costs are similar to advertising costs, they both are subtracted from revenues they create. Differences are -rent seeking tends to reduce competition -advertising tends to increase competition -the rent seeker’s money goes to government, enlarging government including bureaucracy created to oversee the rent seeker after it receives the favor -the advertiser’s money goes to advertising businesses, enlarging the economy … Rent-seeking -protects established businesses from competition creating monopoly profits -enriches politicians and their supporters -reduces the size of the economy -increases the size of government The most common and most economy-damaging form of rent-seeking is industries lobbying government to limit imports. … …
Picture 240805 Cooling off after exercise, weight at 165 pounds. Got to 160 pounds five years ago and have been bouncing between 157 and 168 since. Common sense ways to lose and keep off weight are eat right and light and get lots of exercise. Main exercise is walking, do 1~2 miles most days. Over career worked as a salesman in the steelmaking, fasteners, and auto manufacturing industries, lots of travel in U.S., Canada, Mexico, and Japan. Over the years have visited every U.S. city with a major league, MLB, NFL, NBA, NHL, sports team except Sacramento, have gotten as close as Travis Air Force Base. Often traveled on Sundays, much time on the road so could not eat right and get enough exercise so got heavy, up to 200 lbs. Was on commission and made enough to retire early, eat right and light, get enough exercise, and now spending most time reading and writing. Our Wick branch goes back to the brother of owner of Wick House in Morristown New Jersey and on back to Staines England. Have
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