When people compete for grants, subsidies, and other government handouts, economists see a phenomenon called rent seeking. The “rent” is the money being offered. When government gives money away, the people who compete for it incur costs—sometimes more money will be spent in total trying to compete for a grant than the amount of money being given away. These costs are rarely considered in policymaking, but perhaps they should be. One major cost of rent seeking, as Prof. Michael Munger points out, may be that the government awards money to organizations with the best lobbyists, not necessarily those providing the best services.
- Next story The Most Insane News Story You’ll See Today !!!
- Previous story MUST SEE VIDEO – Anderson Cooper Confronted about the use of Green Screens
Today's Top Stories
- BullionDirect.com Suspends Operations!
- Martin Armstrong: There Is No Hope Of Stopping The Crisis In Europe, Economic Depression Is Most Likely Going To Spread After October 1, 2015
- MATT DAMON on U.S. SCHOOL SYSTEM – Public Schools Are Rapidly Turning into Indoctrination Centers
- No more fireworks, grilling and fun: Obama Planning to Change 4th of July Celebrations FOREVER, using the EPA.
- Chinese banker “The government must rescue the market, not with empty words, but with real silver and gold,”
- September 28th 2015 The Event Horizon: Another Dead NASA Scientist, ‘SEVENTY FOUR’ Scientists dead in 2 years!
- Drone captures thousands of ‘NO’ protesters flooding Syntagma Square in Athens
- The US Government Does Not Want The People Of The Us Thinking About Independence Day, When The People Wanted Their Independence From A Tyrannical Government.
- Nomi Prins: In A World Of Artificial Liquidity – Cash Is King And You’d Better Have Some Stashed Out Of The System
- Greek Anarchists Beat Up And Kick Out Riot Police
- July 4: US military & police: Impose martial law on all Americans, or arrest .01% criminal psychopath ‘leaders.’ Your call
- Watch: The Stupidity Of Some Americans Is Absolutely Mind-Boggling