| > Rent-seeking is derided behavior by basically everyone who isn't rent-seeking. Rent-seeking is something specific. If we can't get that right we're not going to get far into the discussion. Not all rents are the same. Hotels rent rooms. But they are not the same as rent seeking. If you're not creating new wealth/value add, and instead exploit rents by mere virtue of owning, then it is rent-seeking. If you're adding value, like providing a service or other additions, then no it's not rent seeking. The 98 year old lady? Probably rent seeking. The couple doing AirBnB? Probably not. Why? AirBnBs, like hotels, tend to provide a genuine service that adds value. The listings are in a competitive market, where people need to improve the living spaces in order for them to get rented out. This doesn't take into account the various hospitality businesses that have emerged in various rural communities because of AirBnB. It's an entire industry. That is Hotels/Hospitality businesses are NOT rent seeking just because they rent out rooms or provide services on land they own. Who is Rent-Seeking? The people preventing new housing/infrastructure from being built are the ones rent-seeking. They artificially manipulate market conditions by restricting supply, driving up land value, and thereby generate unearned income. Income that isn't from productive improvements on land but from mere ownership of land. That unearned income on land is rent-seeking behavior. |