Bitcoin Songsheet Rent Seeking – Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides

Rent seeking is the real virus.

The virus spreads from person-to-person through the central bank-backed fiat monetary system and grows like a cancer through regulation. Rent seekers think they are providing some value somewhere, but can’t identify how, because they aren’t providing any. They are able to extract a tax from various transactions, consuming resources without producing. They are a cancer ruining civilization, infecting governments, corporations and everything in between.

What’s making rent-seeking thrive? How do we rid ourselves of this plague?

Easy Money

The problem of rent seeking comes from incentives, and fiat money is what creates them. Fiat money is like consuming candy and sugary soft drinks. They incentivize the wrong bacteria to thrive in our mouths, creating cavities.

Similarly, fiat money creates the right conditions for rent-seeking jobs. There are many such jobs, like government-funded think-tank jobs, compliance personnel at various companies and of course, in banking.

There’s a lot to like about such jobs as they’re generally pretty easy as there’s little to no competition. They also pay well and there are no fickle customers to satisfy. The only people that need to be satisfied are the people in charge, and as long as you stay within their good graces, your job is secured.