by Maireid Sullivan
2012 - updated 2024
Work in progress

Introduction
Melbourne University anthropologist and geographer - specialising in 'political and legal anthropology, Indigenous agreements and engagement with the minerals industry, and Indigenous culture and art' - Professor Marcia Langton AO introduced me to the concept of "Rent Seeking" when she used the term to describe unregulated exploitation of Australian resources. Hence, my growing interest in the evolution of Classical Political Economic Theorem and the Law of Rent Theorem.

53rd Boyer lecture 2012.
Presented by Professor Marcia Langton (b. 1951-):
The Quiet Revolution: Indigenous People and the Resources Boom
... an investigation into the dependency of Aboriginal businesses and not-for-profit corporations on the resources industry, and their resultant vulnerability to economic downturns.

Agreements, Treaties & Negotiated Settlements is a multidisciplinary research project examining agreements with indigenous people, including native title, land access and resource extraction agreements and related issues.

Giving VOICE to "traditional" Indigenous issues, in response to the "VOICE" Referendum of October 2023, Bryan Kavanagh, retired Land Valuer at the Australian Taxation Office (ATO),stated:
"As a treaty between its first peoples and others, we the people of Australia acknowledge the forced dispossession of aboriginal people from country. Accordingly, we nearby declare the rent of land and natural resources to be the common wealth of Australia, the source of a universal citizen’s dividend, and that arbitrary imposts upon labour, thrift and industry shall be abolished for the welfare of all Australians. We further declare that commodification of land and natural resources clearly represents a violation of human rights. Accepting the earth to be common property, the birthright of all, this treaty is enacted to close the gap between Australia’s first peoples and its subsequent inhabitants.”
- In 2007, Bryan Kavanagh's study on the long-term effects of property bubbles was published: Unlocking the Riches of Oz: A Case Study of the Social and Economic Costs of Australian Real Estate Bubbles,
1972-2006 (2007). Download REPORT (pdf).

"There is a big discovery to be made, and this lies in an epochal change." – Bryan Kavanagh, Land Valuer (Ret.) Aust. Tax Office
(Follow his Blog)

Bryan Kavanagh spoke to the value of collecting Economic Rent instead of income and business taxes when I interviewed him on 18 April 2008:

Excerpts:
When it comes to economics, the reintegration of the theory of land valuation is essential. It’s the new frontier —just as we sent Voyager out to explore space.

We're at a turning point where the economy is not working for us. There is a big discovery to be made, and this lies in an epochal change—the rediscovery of Resource Rent: Shifting—transferring taxes to Resource Rent is going to open the way for a whole new development for humanity.

The implications for humanity are greater freedom, more time for relaxation, for family, more time for the arts, and far less government control of our lives. These ideas might sound mystical, but they are the sorts of solutions that could be delivered to us, once we pass through this new frontier.

It's not just land rents we want to capture. We want to capture licenses for electromagnetic spectrum, aircraft slots, all forms of forestry and mineral licenses, all resources. These would supplement our charges on land values, and add to the enormous Resource Rent pot, that is now 285 billion—more than our current [Australia 2008] level of tax revenue.

We've witnessed the progressive loss of a sense of community, and land rents represent community. If we collected Resource Rent, we'd get rid of poverty.

We have a widening gap between wealthy and poor because the wealthy are capturing Resource Rent.

We've got to rediscover the land tax system. This would open up enormous benefits. It would fund infrastructure, education, health, all of these areas that are crying out for funds, and this fund is sitting there, being grossly capitalized by individuals and causing us to ratchet up taxes to fund them. But if we decrease taxes, and capture more of the Resource Rent, we would be doing as nature intends us to do—using growing Resource Rent funds for public purposes.

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Rent Seeking - selected definitions

Wikipedia
"Rent-seeking is the act of growing one's existing wealth by manipulating the social or political environment without creating new wealth. Rent-seeking activities have negative effects on the rest of society."

Investopedia
"when an entity seeks to gain wealth without any reciprocal contribution of productivity."

Rent Seeking - explained and illustrated
What Is Rent Seeking in Economics, and What Are Some Examples?
By Christina Majaski, Dec. 03, 2021, Investopedia

KEY TAKEAWAYS

• Rent seeking is an economic concept that occurs when an entity seeks to gain wealth without any reciprocal contribution of productivity.

• “Rent” in rent seeking is based on the economic definition of the term, which is defined as economic wealth obtained through shrewd or potentially manipulative use of resources. A more colloquial way of describing this behavior is “privilege seeking.”

• An example of rent seeking is when a company lobbies the government for grants, subsidies, or tariff protection.

• Rent seeking comes in many forms from lobbying or donating funds.

• For example, if you donate money but write it off on your taxes, it could be considered a form of rent seeking.1

  References
  1. Forbes. “What Is Rent-Seeking Behavior?”
  2. Corporate Finance Institute. “Rent-Seeking.”

  >>> continue

  Table of Contents

  • What Is Rent Seeking?

  • How Does Rent Seeking Work?

  • Factors and Examples

  • Issues Involved

  • Is rent seeking illegal?

  • Why is rent seeking bad for the economy?

  • Are landlords rent seekers?

  • The Bottom Line
    

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