Title: What is rent? Definition and some examples - Market Business News
Headings: What is rent? Definition and meaning
What is rent? Definition and meaning
Economic rent – another example
What is land?
Two farmers
What is rent-seeking
Closed-shop systems
The wealth pie does not grow
Government corruption and rent-seeking
Video – What is economic rent?

Content: What is rent-seeking
In public-choice theory and economics, rent-seeking refers to trying to increase one’s share of existing current wealth without creating any new wealth. If you use the resources of an individual, company or any organization to obtain economic gain from others – to make yourself richer – but do not reciprocate any benefits to society through wealth creation, you are rent-seeking. When a company lobbies the government for grants, tariff protection, or loan subsidies, it is rent-seeking. None of these things create any benefit for society. The company does not create any extra wealth. It becomes richer, but the taxpayer has to pay for it. If you are CEO of a company and you succeed in obtaining subsidies or getting legislation passed that restricts competition and makes it harder for newcomers to enter the market – barriers to entry – you have managed to increase your share of existing wealth without increasing the size of that total wealth; you have been rent-seeking. Moreover, you have earned income without actually creating or producing anything at all. You have not put any of your capital at risk either.