Rent-Seeking

DEFINITION of 'Rent-Seeking'

When a company, organization or individual uses their resources to obtain an economic gain from others without reciprocating any benefits back to society through wealth creation.

BREAKING DOWN 'Rent-Seeking'

An example of rent-seeking is when a company lobbies the government for loan subsidies, grants or tariff protection. These activities don't create any benefit for society, they just redistribute resources from the taxpayers to the special-interest group.

RELATED TERMS
  1. Economy

    Economy is the large set of inter-related economic production ...
  2. Tariff

    A tax imposed on imported goods and services. Tariffs are used ...
  3. Market Value Added - MVA

    A calculation that shows the difference between the market value ...
  4. Wealth Added Index - WAI

    A metric designed by Stern Stewart & Co consulting firm that ...
  5. Protectionism

    Government actions and policies that restrict or restrain international ...
  6. Tight Monetary Policy

    A course of action undertaken by the Federal Reserve to constrict ...
Related Articles
  1. Economics

    Economics Basics

    Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
  2. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  3. Economics

    The Importance Of Inflation And GDP

    Learn the underlying theories behind these concepts and what they can mean for your portfolio.
  4. Economics

    Cashing In On Macroeconomic Trends

    Learn to identify the things that may impact your investments down the road.
  5. Forex Education

    Forex: Identifying Trending And Range-Bound Currencies

    Gain a trading edge by learning how macroeconomic forces play out differently for various pairs in the forex market.
  6. Investing News

    How Interest Rates Can Go Negative

    Central banks from Europe to Japan have implemented a negative interest rate policy (NIRP) in order to stimulate economic growth.
  7. Economics

    The Delicate Dance of Inflation and GDP

    Investors must understand inflation and gross domestic product, or GDP, well enough to make decisions without becoming buried in data.
  8. Economics

    Industries That Thrive On Recession

    Recessions are not equally hard on everyone. In fact, there are some industries that even flourish amid the adversity.
  9. Investing News

    Tufts Economists: TPP Will Reduce U.S. GDP

    According to economists at Tufts University, the TPP agreement will destroy half a million jobs in the U.S. by 2025.
  10. Forex

    The Consumer Price Index

    Find out how this economic measure can help you make key financial decisions.
RELATED FAQS
  1. What regulations exist to protect infant industries?

    There are far more protections of once-infant and now-dominant industries in the United States than regulations designed ... Read Full Answer >>
  2. What are the major laws (acts) regulating financial institutions that were created ...

    Presidents George W. Bush and Barack Obama, in conjunction with Congress, signed into law several major legislative responses ... Read Full Answer >>
  3. What are the advantages of a limited government in connection with a capitalist economy?

    Economic markets are efficient to the extent that the effects of transactions are clearly understood and the prices of goods ... Read Full Answer >>
  4. How can data assist operations management in increasing efficiency?

    Pork barrel politics affect the economy in several ways. Pork barrel spending occurs when the government earmarks funds to ... Read Full Answer >>
  5. Where did the phrase "pork barrel" come from?

    Use of the phrase "pork barrel" dates back to 1863 and was initially used in reference to any money that a government spent ... Read Full Answer >>
  6. What causes politicians or governments to begin "pork barrel" spending?

    Pork barrel spending occurs when the government taxes the general population to hand out concentrated benefits to special ... Read Full Answer >>
  7. How is comparative advantage used as a justification for free trade policies?

    The theory of comparative advantage suggests that total economic welfare in all countries is improved when countries focus ... Read Full Answer >>
  8. Does cash-on-delivery aid produce better results than a loan?

    Very little empirical evidence has been collected that can be used to directly compare the results of cash on delivery, or ... Read Full Answer >>
Hot Definitions
  1. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  2. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  3. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  4. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  5. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
Trading Center