Analysis Of Rent Seeking And The Making Of An Unequal Society

In Joseph E. Stiglitz's essay Rent Seeking and the Making of an Unequal Society, he talks about inequality and how drastic it has become. Inequality in society was made by the people that benefited from it. The inequality level in America isn't normal compared to other countries and even the past in America it is an unnatural inequality. This is very unusual even in a recession, the economy weakens and wages drop which causes the price of goods to drop. But now even with the wage drop, many firms are still making good money. Those in power that helped this inequality come about use their power to strengthen their own positions economically or politically. They also have made it seem like what the people want is unattainable or impossible to change or reach. By this, the government also changes the dynamics of wealth by taxing everyone but also offering free public school plus more. The government does this all discreet and small all to benefit the leaders of power.
The bankers have not made the aftermath of the 2008-2009 financial crisis about society but instead, they made it about their self-interests and left the rest of society to suffer. Financiers' self-interests turned disastrous because they weren't in line with the way the economy was headed. …show more content…
Rent seeking is common in countries with lots of natural resources. It is much easier to get rich because of the access to the natural resources by favorable means than by creating wealth. Rent seeking also has another side where government products are sold at above market prices something the drug companies have excelled at. But not all rent seeking uses the government for money. The private sector takes money from the people who are less informed and educated. The government doesn't do what it should with this it doesn't stop the activities or making them illegal it just gives the people at the top and the government more