Nevertheless, the concept is a prevailing element in the Marxist ideology. It doesn't matter that someone came up with it before Marx. Now, I am not certain, but I don't think we actually have "feudal lords" in America. I've been up and down all kinds of rivers across America and I've never encountered a chain or someone seeking to charge me for passage. I don't think this is as big of a problem as you make it out to be.
No offense intended, but you really don't know what you're talking about, especially if you're using the river example as your rebuttal. The example illustrates the point, it doesn't describe the totality of the activity.
When a nurse can perform a procedure but she's prohibited by law and a doctor must be called, then that physician is rent-seeking. The AMA has used the legal system to prevent you from receiving a medical service from a nurse. The physician charges you MORE than the nurse and his expertise isn't applied in the transaction, so he gains free money and provides no added value over the nurse.
When you are prohibited from opening a barbershop because you don't have a barber college license, then barbers have used the legal system to cut off competition. Barbers are rentseeking.
When a draftsman is prohibited by law from designing a 4 story apartment building because only architects are permitted by law to design multistory residential units, then architects have used the legal system to enrich themselves at the expense of draftsman and clients.
We're actually seeing this battle play out prominently with the rise of Uber, the ride sharing service. Taxi companies have used the legal system to shut out competitors and thus drive up fares. They're screaming bloody murder that non-licensed people are offering taxi services. The difference in price between what Uber charges and what a Yellow Cab charges is "rent" - there is no value provided which justifies that additional charge.
And so on.
The stakes get much larger the higher up we go.
The entertainment industry keeps pushing efforts to extend copyright terms and then extend them again and again, to the point where we're approaching unlimited terms. Copyright was initially only for 16 years plus a renewal of 16 years. The industry enriches itself every time they manage to extend the term of copyright. They're not producing any value with the extension, they're just sucking wealth from the economy and not returning anything of value.
Now there are all kinds of capitalists. For the past 10 years, in light of the 'no jobs' economy we're in, I have made my living by finding good deals on various things and reselling them at a profit. I'm not making any contribution to the productivity, just capitalizing on a situation... am I a "rent seeker?"
That's not rent-seeking, that's arbitrage, you're buying low in one market and selling high in another market. You provide value by acting as an intermediary. See, the fact that you don't know what rent-seeking is should open your eyes to the fact that you shouldn't be throwing out charges of Marxism. You're not using the law to grant yourself an advantage, am I right?
But "corporate America" is not some monolithic universal entity that always behaves the same in any situation. It's unfair to stereotype ALL corporations this way.
I'm not doing that. You're not talking to some brain-dead lefty here. The fact that I'm not a lefty doesn't mean I have to be a blind cheerleader for those who exploit the system to their advantage and my disadvantage. When people use their influence to rewrite the laws so that the laws benefit them and harm me, and harm society, then they don't get the benefit of being free-riders on the value provided by Capitalists. Buying influence is not part of the rules of the Capitalist Game. When someone buys influence they're in a sense loading the dice and marking the cards. Screw that, they need to be taken down.
I am as opposed as anyone to cheating and dishonesty. To me, this falls in the category of illegal corruption, and if you know of a way to implement a law that will render illegal corruption obsolete, I am all ears. The fact is, outside the Utopian Universe, there are people who will cheat and exploit the system through corruption and illegal activity, and we need a strong system of adjudication to deal with that. I'm all for enforcing the laws to the fullest extent.
Rent-seeking is NOT illegal. That's the whole point. When the AMA influences government to prevent a nurse from treating your cut finger (for example) and requires a physician to do what a nurse is capable of doing, then this is entirely legal. When Disney sues you for copyright infringement for use of a character that Walt Disney drew in 1932 then Disney has proper legal rights to sue you because the copyright on Mickey Mouse is still in effect because Disney helped extend copyrights just before Mickey Mouse would have entered the public domain allowing your to create derivative works without the permission of Disney.
Well I don't believe investment brokers are not subject to US tax codes. Capital gains rates are designed to encourage risk-taking investment of capital, and I am okay with that. We also have various measures with respect to what many call "loopholes" in our tax code, but these are all measures that were debated and passed into law by our representatives.
[MENTION=37315]jasonnfree[/MENTION] gets it. I didn't use the term "carried interest" because not a lot of people understand what it means, but he's talking about the same thing I've explained above. You giving me a civics 101 lesson is not required, trust me. I appreciate it, but I know this stuff already.
Again... I have no tolerance for cheaters and rule breakers. If it's illegal, I want them punished.
There's nothing illegal about carried interest. Now what are you going to do? You're defending this with your broad defense of capitalism. Carried interest is the result of rent-seeking activity and it IS rent-seeking, it exists only because of legislation. The US Treasury forgoes revenue it would have raised from treating that income as earned income instead of capital gains and that shifts the burden onto everyone else. These hedge fund guys get to save money on taxes and we all have to pay marginally more to make up for the forgone revenue. All legal. All economically inefficient as hell.
You'll notice that my entire argument is focused on economic efficiency and not on economic distribution and "fairness" of outcomes.