Rent Seeking: Taking Without Giving

Rent-seeking is a behavior that describes the tendency of people to seek profits without doing any real work. This reduces economic efficiency through the misallocation of resources. Rent-seeking also hinders the creation of wealth, reduces government revenue, increases income inequality, and potentially leads to national decline.

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Rent Seeking: Taking Without Giving

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COLLABORATORS
Script: Jonas Koblin and Jonas Jacquet
Artist: Pascal Gaggelli
Voice: Mithril
Coloring: Nalin
Editing: Peera Lertsukittipongsa
Head of Partnership Programme: Selina Bador
Production: Bianka
Proofreading: Susan
Sound Design: Miguel Ojeda

SOUNDTRACKS
Tarantella – Adieu Adieu

DIG DEEPER with these top videos, games and resources:
Private and Public Rent-Seeking (and Chilean Buses), listen to Russ Roberts and his guest Mikel Munger discuss rent seeking on econtalk
What is Rent Seeking – what Forbes Magazine explains it
Evonomics 101 — How we can prevent rent seeking
Another way of preventing rent-seeking and corruption – real life example

SOURCES
https://en.wikipedia.org/wiki/Rent-seeking
https://www.econlib.org/library/Enc/RentSeeking.html
https://www.investopedia.com/terms/r/rentseeking.asp

CLASSROOM EXERCISE
Role play with your students: If available, find a real life example of a company exhibiting rent-seeking behavior that was brought to the public eye and resolved recently. Split your class into company representatives, company employees and government officials or other key players in the case. Act out the case of how the officials are accusing the company of rent seeking behavior. But how should the company react? How does this affect the employees? What would your students do differently as compared to how the case was resolved in real life?

CHAPTERS
00:00 Intro to Rent Seeking
00:21 The classic example
01:07 Direct costs
01:19 Opportunity costs
01:35 Moral costs
03:49 Adam Smith’s definition
04:22 What do you think?
04:40 Ending