One possible issue is I did not address 'rent seeking,' per se. My view on rent seeking is that it is up to the regulators of an economy to minimize and distribute it, and up to economists to provide the best theory for doing so. Since basically everyone tries to do it all the time, to address it as original cause would seem not to be a properly economic issue. However, if the problem is some institutional structure which permits some small slice of society to damage the rest of society with their rent seeking, then that institutional structure is what you want to address.
Anyway, if you disagree with this post, please comment. If you agree, feel free to comment, also. And then you might want to help spread the word. END EDIT.
- First, we need to break away from competitive marginal productivity theories of factor returns and model mechanisms which generate rents with consequences for wealth inequality.
- Second, we need to focus on the interaction between income from physical and financial capital and income from human capital in determining snapshot inequality, but also in determining the intergenerational transmission of inequality.
- Third, we need to further develop normative theories of equity which can address mechanisms of inequality transmission from generation to generation.”