Michael Lind: Private Sector Parasitestags: Michael Lind, Salon, capitalism, Economy, rentiers
Michael Lind is the author of Land of Promise: An Economic History of the United States and co-founder of the New America Foundation.
You don’t have to be a Tea Party conservative to believe that the economy is threatened when there are too many “takers” and not enough “makers.” The “takers” who threaten the dynamism and fairness of industrial capitalism the most in the twenty-first century are not the welfare-dependent poor—the villains of Tea Party propaganda—but the rent-extracting, unproductive rich.
The term “rent” in this context refers to more than payments to your landlords. As Mike Konczal and many others have argued, profits should be distinguished from rents. “Profits” from the sale of goods or services in a free market are different from “rents” extracted from the public by monopolists in various kinds. Unlike profits, rents tend to be based on recurrent fees rather than sales to ever-changing consumers. While productive capitalists — “industrialists,” to use the old-fashioned term — need to be active and entrepreneurial in order to keep ahead of the competition, “rentiers” (the term for people whose income comes from rents, rather than profits) can enjoy a perpetual stream of income even if they are completely passive.
Rents come in as many kinds as there are rentier interests. Land or apartment or rental-house rents flow to landlords. Royalty payments for energy or mineral extraction flow to landowners. Interest payments on loans flow to bankers and other lenders. Royalty payments on patents and copyrights flow to inventors. Professions and guilds and unions can also extract rents from the rest of society, by creating artificial labor cartels to raise wages or professional fees. Tolls are rents paid to the owners of necessary transportation and communications infrastructure. Last but not least, taxes are rents paid to territorial governments for essential public services, including military and police protection....
comments powered by Disqus
- Rare silent Native American movie of 1920s attracting a lot of interest
- It happened in Idaho and was the largest massacre of Indians in US history, but where exactly did it take place?
- Junípero Serra’s Missions Destroyed Entire Native Cultures. And Now He’s Going to Be a Saint.
- Isis destruction of Palmyra's Temple of Bel revealed in satellite images
- McKinley's lost his mountain. Should we still remember his presidency?
- Japanese historian upends the familiar narrative of WW 2 by taking a bottom up approach, focusing on fascism from the grassroots
- Holocaust-denying historian David Irving organises 'disgusting' £2,000-a-head holiday tours of former concentration camps and Hitler's HQ so people can 'make up their own mind about the truth'
- 72 history professors sign letter urging removal of Jefferson Davis statue from Kentucky Capitol
- 10 Years After Katrina, the Enduring Value of the Hurricane Digital Memory Bank
- Historian author Antony Beevor says his new World War 2 book may anger Americans