ABSTRACT
Chapter 2 introduces the concept of rent and gives some perspective on the origin of the term. It argues that rents are prevalent in the economy and can be received by all workers and firms. Rent seeking is defined as wasting resources trying to capture rents. This definition is intentionally broad as it allows for an analysis of rent seeking outside the public sector and deserves more attention from economists. It concludes by suggesting that rent seeking is in line with the goals of capitalism for the individual but contradicts the goals of capitalism for society. The tension between the individual behaving exactly as they should and the costs to society suggest that the structure of the economy needs fixing.
