Title: What Is Rent-Seeking Behavior?
Headings: What Is Rent-Seeking Behavior?
What Is Rent-Seeking Behavior?
Content: Rent-seeking is a normal impulse. Much of what we do in wealth management is rent-seeking. Many of our clients have already produced all their income. After that, we practice tax management and look for ways to reduce government-legislated rent-seeking. Tax planning doesn't add value to society as a whole, but it can be personally profitable. In cases like tax planning, not to participate in rent-seeking when doing so would clearly benefit you is just a needless personal sacrifice. However, even if we exploit such an opportunity, we should still oppose the legislation that establishes these incentives in the first place. Such legislation is prevalent in our government. Any efforts to subsidize or bail out struggling businesses are rent-seeking. When some banks take excessive risks to gain excessive returns, they are risking that the returns will be worth the hazards involved.