As I was driving home I realized something that I had seen all this time but never understood its importance. All along the street lights there are banners advertising restaurants set up by the local merchants association. I got to thinking, is this rent seeking? Think about it, the local marketing group asks the city council to let it provide them with ads in alliance with the merchants all for the good of “giving back” to the community or “to do their civic duty” and the ad revenue is channeled into city revenues through increased tax revenues resulting from increased customers -A total example of rent seeking or just paranoia?
When I arrived at home I switched on the “travel channel” and saw that mexico has strict laws against just anyone making their own tequila. This obviously gives juan cuervo total monopoly over the production of that drink. But it also allows them to produce using backwards means -barrels, manual laborers, in extremely hot conditions, etc (when all of this could be done by machine!). This in turn affects mexican culture -tequila is not a get-drunk-quick drink but rather a mark of culture and sophistication to be imbibed gradually and with moderation.
Anyone else notice weird things that they suspect is rent seeking? the truth is out there…