Title: What Is Rent-Seeking Behavior?
Headings: What Is Rent-Seeking Behavior?
What Is Rent-Seeking Behavior?
Content: This situation can create a downward spiral because the rewards of rent-seeking are often constant, whereas the surpluses available in a market economy are more variable. When the economy is poor, the burden of fixed rent-seeking costs on producers drives surpluses even lower. This makes rent-seeking relatively more attractive, which in turn further burdens those who try to remain productive. Much rent-seeking is redistributing the surplus of one group of the middle class to another group of the middle class via the government. Although there might be great incentives for one group to seek another's surplus, there is no added value for society as a whole. 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.