The expenditure of resources in order to bring about an uncompensated transfer of goods or services from another person or persons to one’s self as the result of a “favorable” decision on some public policy….Examples of rent-seeking behavior would include all of the various ways by which individuals or groups lobby government for taxing, spending and regulatory policies that confer financial benefits or other special advantages upon them at the expense of the taxpayers or of consumers or of other groups or individuals with which the beneficiaries may be in economic competition.
In public choice theory, rent-seeking is an attempt to obtain economic rent, (i.e., the portion of income paid to a factor of production in excess of that which is needed to keep it employed in its current use), by manipulating the social or political environment in which economic activities occur, rather than by creating new wealth. One example is spending money on political lobbying in order to be given a share of wealth that has already been created.
And while the first blast at Rent-Seeking Walmart’s new stores has petered out, it is an EXCELLENT, encapsulated example of Rent-Seeking by those waving the Union Label. There are those in DC that will do anything to keep out the Big Box stores, especially Walmart. The Unionistas claim that Walmart doesn’t pay it workers well enough (er, then why do they work there? but that’s for another post). So, the Biz-Haters and the Unions wanted to have a “living wage” restriction placed upon Walmart via the Large Retailer Accountability Act that would have put their entry level labor costs 25% over the competition:
The bill would require retailers with corporate sales of $1 billion or more and operating District stores of at least 75,000 square feet to pay their employees a “living wage” — no less than $12.50 an hour in combined wages and benefits. The proposal includes an exception for employers who collectively bargain with their employees, and existing employers have four years to come into compliance under the law.
Notice the store size (only Big Boxers). Notice the corporate sales limit (er, Walmart is WELL north of that). OK, that would be fair – if a town has decided what it’s “look and feel” is to be, so be it. But notice the “Rent-Seeking”:





