Content deleted Content added
WP:UNDUE to put a Marxist thesis front-and-center |
No edit summary |
||
Line 5:
Compare: {{oed | rent-seeking}} – "'''rent-seeking''' n. ''Economics''[:] the fact or process of seeking to gain larger profits by manipulating public policy or economic conditions, esp. by means of securing beneficial subsidies or tariffs, making a product artificially scarce, etc. [...]"
</ref>
Rent-seeking activities have negative effects on the rest of society. They result in reduced [[economic efficiency]] through [[allocation of resources|misallocation of resources]], reduced [[wealth creation]], lost [[government revenue]], heightened [[income inequality]],<ref>{{cite web |url= https://www.imf.org/external/pubs/ft/wp/2001/wp0115.pdf |title= Rent-seeking and Endogenous Income Inequality |author= IMF |access-date= 30 April 2014}}</ref><ref name="Deaton2023"/> risk of growing political bribery, decreased [[public trust]] in institutions and potential national decline.
Successful [[regulatory capture|capture of regulatory agencies]] (if any) to gain a [[coercive monopoly]] can result in advantages for rent-seekers in a [[market (economics)|market]] while imposing disadvantages on their uncorrupt competitors. This is one of many possible forms of rent-seeking behavior.
| |||