Tag Archives: rentier capitalism

Rentier Capitalism

The Financial Times  (on Wednesday, 18th September) carried an article by Martin Wolf “ Why rigged capitalism is damaging Liberal Democracy “ .He writes “Economies are not delivering for most citizens because of weak competition, feeble productivity growth and tax loopholes”

Guy Standing in his 2016 book “The corruption of capitalism” explained how capitalism has been corrupted as the security of the many has been weakened to strengthen the position of those who hold the bulk of society’s wealth. He wrote, “we have a rigged system that leaves those without much property with few rights”. He borrows from John Maynard Keynes’ critique of the rentier class — broadly, those who live on income from property, including patents and copyright, and investments. And like Keynes, he wants to see the end of the rentier on the grounds that the system they have created is both inefficient and grossly unfair. Those at the bottom Standing calls the precariat — the workers most exposed to the insecurity typical of this era of rentier capitalism driven by globalisation.

The unfairness of housing policy in the UK, one of the more egregious examples of the power of the rentier, is highlighted as are labour conditions in the era of apps, where data are used to monitor and control a workforce with little by way of employment rights. Standing writes that “the precariat’s vulnerability today is everyone’s tomorrow.”

Wolf asks the question “Why is the economy not delivering?” The answer lies, he says, with the rise of rentier capitalism. In this case “rent” means rewards over and above those required to induce the desired supply of goods, services, land or labour. “Rentier capitalism” means an economy in which market and political power allows privileged individuals and businesses to extract a great deal of such rent from everybody else.

Posted in News | Also tagged and | 3 Comments
Advert



Recent Comments

  • User AvatarMack 26th Feb - 2:24am
    There are some good ideas here, but I think that joining them together is probably important to seriously tackle this issue. Building more houses, regardless...
  • User AvatarYousuf Farah 26th Feb - 1:53am
    What you allude to in your article as a way to preserve the union whilst keeping dialogue with the SNP, is untenable. It would make...
  • User AvatarManfarang 26th Feb - 1:39am
    With the British economy failing under Johnson the number of British people seeking employment overseas is set to increase.
  • User AvatarDavid Evans 26th Feb - 1:01am
    But what is Unique to the Lib Dems about building more houses? Every party is in favour of it - the Conservatives because it will...
  • User AvatarPaul Holmes 26th Feb - 12:22am
    @TCO But private sector housing is more expensive. So a Council Tenant who is being financially hit by the Bedroom Tax is, according to you,...
  • User AvatarBen Rattigan 25th Feb - 11:15pm
    I cannot agree with this. Why? Mission Creep That's what happened with Labour plans and why I switched from Labour to LibDem. Govts can't help...