MAKING CONSUMERS WORSE OFF
“[. . .
economic] rents make the economy less efficient, because they move it
away from the ideal of perfect competition, and they make consumers worse off. So from the
perspective of the economy as a whole, rent-seeking is a waste of time and
energy. As [Joseph] Stiglitz puts it, the economy
suffers when
“ ‘more efforts go into “rent seeking” — getting a larger slice of the country’s economic pie—than into enlarging the size of the pie.’ ”
“ ‘more efforts go into “rent seeking” — getting a larger slice of the country’s economic pie—than into enlarging the size of the pie.’ ”
James Surowiecki, “Why the Rich Are So Much Richer,” in the New
York Review, September 24, 2015, pp: 32-36.
