Rent-seeking is when resources are used, let’s say the government, to reap economic gains without having to contribute to society or creation of wealth. This is mostly seen through lobbying the government for subsidies. It basically is a way to earn “income”. The downside to rent-seeking is that it can be seen as corruptive, as those who impose their legal authority to gain benefits from those paying the “rent”. Overall, it can be determined that rent-seeking behaviors really do not benefit the economy and in all reality cost the economy more! The lesson here is not to go cheaper, but to be more efficient in operations.
