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FOR THE BIRDS, AND MOSTLY THE CHILDREN TOO

Word.

via wikipedia, for thought: Rent-Seeking

The word “rent” in this sense is not directly equivalent to its usual use meaning a payment on a lease, but rather stems from Adam Smith’s division of incomes into profit, wage, and rent.

If “buying” a favorable regulatory environment is cheaper than building more efficient production, a firm will choose the former option, reaping incomes entirely unrelated to any contribution to total wealth or well-being.

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Filed under: Enterprise & Economies, GLOSSARY

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