Title: What is rent-seeking? Definition and meaning - Market Business News
Headings: What is rent-seeking? Definition and meaning
What is rent-seeking? Definition and meaning
Rent-seeking behaviors of lobbying
Rent-seeking licensing rackets
Rent-seeking in government
Video – Rent-Seeking – Definition and Meaning

Content: Rent-seeking comes in many forms, including barriers to entry like onerous licenses, having to belong to a particular trade union in order to work in a trade, imposing tariffs, and corruption in government. In all cases, no additional wealth for the nation, sector or society is created. Sometimes, requiring a license is necessary and makes sense. For example, doctors are not allowed to practice if they don’t have a license – that is to protect the well being of patients. Pilots are not allowed to fly passenger planes unless they have a special license – that is to protect the lives of the passengers. In such cases, license requirements make sense – the reasons are obvious. However, there are some markets in the world where an onerous, special license is required if you want to be a florist, taxi drive, or even an interior decorator. Clearly, in those cases, the license requirements are simply barriers to entry – they have nothing to do with protecting the consumer. They are there simply to protect the existing competitors and give them an unfair and uncompetitive advantage. License requirements are often examples of rent-seeking behaviors.