http://devinhelton.com/2013/04/14/rent-seeking-economy/
In a healthy society, people acquire wealth by making stuff people want.
Yeoman farmers till plots to provide for their nutritional wants. Laborers
assemble motorcycles for consumers who pay money because they find the motor
bikes valuable. Social workers are employed by a philanthropic organization
and earn a salary by furthering the official goals of the organization.
Artisans craft furniture and buildings that others value and wish to buy.
A society structured as the above has two great benefits. First, incentives
are aligned to produce more output. A person can only acquire wealth by
producing wealth. Thus the production of wealth is encouraged, as man's
natural greed is channeled towards productive ends. Second, humans are
innately goal seeking creatures. It makes us fundamentally happy to strive
towards a goal — whether that goal be winning a football game, learning a
new song on the piano, leveling up in Warcraft, or producing a product that
people want.
In a dysfunctional society, people acquire wealth via corruption,
rent-seeking, and theft. Perhaps they steal it at the point of a sword.
Perhaps they acquire wealth through outright corruption. Perhaps they
acquire wealth through holding a position in a completely dysfunctional
management structure that requires internal politicking and Kabuki make work
rather than actual performance.
I don't agree with everything in this article, but there are some excellent
quotable sections.
Via Edward Morbius.
Cheers,
*** Xanni ***
