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.

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  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 >>
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