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American society - Research Paper Example

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Rent seeking is a behavior by firms to seek only to make maximum profit without benefiting any other stakeholder such as the customers, the employees or even the society in general. Banks in America have been seen to apply this in the past. The rent seeking behavior has been…
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American society
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American society

Download file to see previous pages... According to Klunover1, rent seeking is a practice in which a party seeks to gain economic gain from others without himself adding value to those from whom he has gained the economic gain. The party in this case can be an individual, or an organization. The organization can be a for-profit firm or a nonprofit firm such as Nongovernmental Organizations, lobbyist groups or even regulatory authorities. In America, financial institutions, and especially banks and mortgage providers have been in the frontline of rent seeking, which has left poor individuals at a marginalized situation. The American economy has for so many years enjoyed high productivity levels compared to other economies. It can be argued that this is what led to the success of the American economy in the past. However, this has not remained the same over the years. Rent seeking behavior has been seen by some of the biggest players in the economy, that is, the American financial institutions. This behavior has left the American public (over 99% of Americans) at an economic disadvantage. Rent seeking by American banks has a negative impact on the American economy and can be said to be the source of the economic inefficacies that have been witnessed in the past, especially the past economic recession in the USA.
The methodology that will be used for this paper is literature review. Scholarly works from different backgrounds will be consulted through their past work to identify how the rent seeking behavior has affected the American economy.
Social inequality has been discussed in a number of scholarly studies. From past literature, it becomes clear that social inequality has always been there since the civilization of man. Social inequality manifests itself as a stratification of the society where various strata of the society have varying degree of access to resources. Those who are at the tip of the social strata are able to access the best and the highest number of ...Download file to see next pagesRead More
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