Tag Archives: rent extraction

Capitalism is an economic system that favor capital (ownership) over labor (people) and land (the environment) because capital formulation generates growth and "a rising tide lifts all boats" (trickle down). Socialism is an economic system that favors labor (people) and land (the environment) over capital (ownership) because the economic system is the life-support system of society and needs to be subjected to the comprehensive needs of society, which are social and political in addition...

What Dean is saying is to preempt extraction of economic rent before it occurs, instead of taxing it back afterward. A lot of rent extraction results from government policy that can be changed politically — if the public demands it strongly enough. Truthout Progressive taxes only go so far. Pre-tax income is the problem Dean Baker | Co-director of the Center for Economic and Policy Research in Washington, D.C

Report.Economic Policy InstituteIt’s not just monopoly and monopsony: How market power has affected American wages Josh Bivens, Lawrence Mishel, and John SchmittSee alsoFrom Poverty to PowerThe World Bank’s flagship report this year is on the future of work – here’s what the draft says Duncan Green, strategic adviser for Oxfam GB

Good article about economics, power and ethics, with which I would substantially agree as a philosopher.  However, Professor Ruccio passes over the economic aspect of power, which bestows the ability to extract economic rent.  Power results in asymmetries that vitiate perfect competition and generate imperfect markets. This allows for rent extraction. Rent goes to the powerful, that is, the owners of real and financial capital, to the disadvantage of those lacking power, basically...

… as the authors of the new report from the United Nations Conference on Trade and Development have explained, there is a growing concern that increasing market concentration in leading sectors of the global economy and the growing market and lobbying powers of dominant corporations are creating a new form of global rentier capitalism to the detriment of balanced and inclusive growth for the many. And they’re not just talking about financial rentier incomes, which has been the focus of...

Earlier this year, a Stigler Center paper by Luigi Zingales [Faculty Director of the Stigler Center and one of the editors of this blog] argued that market concentration can lead to a vicious circle, in which companies use market power to gain political power that in turn allows them to gain more market power, and vice versa. Zingales called this the “Medici vicious circle”: “Money is used to gain political power and political power is then used to make more money.”A new UN report shows...