Government Policies Fuel Rent-Seeking Behavior, Impacting Societal Welfare
The article discusses how governments and laws can create opportunities for people to make excessive profits, known as rent. Regulations on property ownership play a big role in this. When these opportunities are made available, people can start extracting or seeking these profits. Changing policies can either make new profit opportunities or change how existing ones are shared out. These changes then affect people's eagerness to chase after these profits. Some ways of making profits may be harmful, so limiting them could be a good idea. This research suggests that regulations are needed to control certain unfair profit-making practices.