• SCB@lemmy.world
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    1 year ago

    “Rent-seeking” as an economic concept is not when you collect rent, as a landlord does.

    • Aceticon@lemmy.world
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      1 year ago

      In Economics “rent-seeking” is seeking to receive a “rent”, but the concept of “rent” here is broader than merelly the kind of rent paid for a property (for example, when banks place themselves in the position to get a commission out of every small financial transaction out there, through “Touch To Pay” schemes, they are “rent-seeking”).

      So whilst not all rent-seekers are landlords (probably not even most rent-seekers), all landlords are rent-seekers, which is exactly how I handled those definitions in my post.

      Your post is like saying “‘Apple’ is not the same as ‘fruit’” when somebody else whilst talking about apples called them “fruit”.

      • SCB@lemmy.world
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        1 year ago

        Landlords aren’t necessarily rent-seekers (though some individuals conceivable could be) as economists use the term, and your lack of understanding of economic rent-seeking is something you can fix.

        Rent-seeking is a concept in economics that states that an individual or an entity seeks to increase their own wealth without creating any benefits or wealth to the society. Rent-seeking activities aim to obtain financial gains and benefits through the manipulation of the distribution of economic resource

        Providing a home is a benefit to the society.

        Credit processors (what you’re calling “banks”) provide a service to merchants. They are also not rent-seeking.