Monday, June 26, 2017
Rent Seeking bx crowding out trad production
Rent-seeking behavior is crowding out classical economic productivity. Ask yourself this: do you know anyone who produces goods or services that are not subsidized or derived from government spending/entitlements? Is your highest ambition to escape global labor arbitrage by sheltering in a government mandated make-work program that pays in excess of actual market demands? If government underwrites universal survival absent requirements to produce tangible economic value then the value of merely surviving drops to zero. The insidious growth of this strategy of rent-seeking and flight from real economic productivity is resulting in a decline in population fitness both intellectual and physical. It may be that rent seeking strategies are pursued for lack of better alternatives despite being sub-optimal in their own right. In such cases (and Arkansas is probably one of them) macro economic policy (Keynesian), misallocation of resources, and crony capitalism bear the responsibility for biopolitical failure.
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