Rentier Capitalism

Created: 2022-12-21
Status: #soil
Last Edited: 2022-12-21
Topic: capitalism economics society politics equality inequality

Economic rent is an income from the ownership of assets, such as land, resources, or intellectual property, that exceeds the costs for acquiring and maintaining those assets. This form of capitalism has been described as “cronyism on steroids” due to its tendency to concentrate wealth in the hands of a few individuals or corporations. This type of system is often accompanied by high levels of inequality and limited economic mobility. The term "rentier" originates from the French word for landlord.

In rentier capitalism, economic rent can be generated through various means, including natural resources (e.g., oil or minerals), intellectual property (e.g., patents or trademarks), land ownership (e.g., real estate) or finance (e.g., stock market speculation). Rentier capitalists can also gain wealth through government subsidies and tax breaks not available to average citizens.

Rentier capitalists benefit from rising asset prices and can use their resources to influence government policies that protect their interests or create new opportunities for themselves at others’ expense. This form of capitalism has been criticised for its lack of transparency, unequal access to power, and inherent unfairness in rewarding those who already have wealth over those who do not.