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rent-seeking

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Financial Dictionary

Rent-Seeking

When a company, organization or individual uses their resources to obtain an economic gain from others without reciprocating any benefits back to society through wealth creation.

Investopedia Commentary

An example of rent-seeking is when a company lobbies the government for loan subsidies, grants or tariff protection. These activities don't create any benefit for society, they just redistribute resources from the taxpayers to the special-interest group.

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Economics Basics Tutorial

See also: Economy, Market Value Added, Protectionism, Tariff, Wealth Added Index - WAI

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