• PugJesus
    link
    fedilink
    89 months ago

    Adam Smith, Father of Capitalism: “Death to landlords”

    • @CancerMancer
      link
      English
      99 months ago

      When even the capitalists can see that rentseeking is bad for the economy, I’m not sure why we have to fight over it all the time. Classic case of zealots not reading their own literature I guess.

      • @[email protected]
        link
        fedilink
        English
        39 months ago

        Rent seeking in classical economics is about monopolists abusing their market position. I’m sure there are some monopolistic landlords but doubt it’s the average case.

        • @[email protected]
          link
          fedilink
          English
          89 months ago

          The rent of the land, therefore, considered as the price paid for the use of the land, is naturally a monopoly price. It is not at all proportioned to what the landlord may have laid out upon the improvement of the land, or to what he can afford to take; but to what the farmer can afford to give.

          I’m not sure even Adam Smith of all people agrees with you

          • @[email protected]
            link
            fedilink
            English
            59 months ago

            Good quote thanks. I suppose he refers to the specific plot of land being rented. Still, I’m just telling what I learned in my economics a-level.

        • @CancerMancer
          link
          English
          59 months ago

          A monopoly is not necessary, just enough influence to affect policy. The biggest landlords are some of the most abusive and manipulative, and engage in much lobbying. Their collusion is part of why housing costs so much, and the government refusing to investigate it is due to their lobbying. Literal rentseeking lol, but yes I’m aware the word isn’t usually so straightforward.

          I like this definition:

          Rentseeking is an economic concept that occurs when an entity seeks to gain added wealth without any reciprocal contribution of productivity.