It is very dangerous to believe that government is the source of all rent seeking. Yes, it is true, the government can be used to seek rents. In fact, in the current environment, it is the number one way to seek rents. The danger comes in refusing to understand the critical role government plays in maintaining a market free from rent seeking activities.
Take banking. You must be operating under the assumption that regulations on banking have increased. That is not the case. I am old enough to remember attending a town meeting in regards to rather the community would approve a new bank. Sure, I was a kid tagging along with my father. But it happened. The town had one bank, and another bank could not locate there without government approval. It was not regulation, but deregulation that spurred the rent seeking among the banks.
I'm not sure I understand what you're saying here. Wouldn't protectionist regulation be the example of rent-seeking?
Look, a market free from regulation can only be free from rent seeking if it meets certain criteria. Barriers to entry, lack of substitution, inelastic demand, collusion, market segmentation, vertical integration---all those "problems" can spring up in a market free from regulation and all of them can be used to extort "rents".
Those problems thrive on *regulation. It's their bread and butter.
I can make this easy. A market is free when everyone seeks additional profits by producing more pie. But as soon as some yahoos start figuring out ways to expand profits by getting more of the pie that is already there, by taking it from someone else without improving quality or lowering costs, then the market is no longer "free".
Nonsense. By your reasoning, anyone who convinces someone to give them their money for something you don't believe 'produces more pie', is guilty of making the market unfree. (Is the purchaser also guilty?). It sounds like maybe you're leaning on the old saw that capitalists don't produce anything. But you sound smarter than that.

*For clarity's sake, and before you go there, let me define what I mean by regulation: laws that don't explicitly protect individual rights - laws that mandate conformity in the name of the social good. On the other hand, laws that do protect our rights, that ban theft, fraud and coercion, are fundamental to a free society, and market.
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