Rentier capitalism
Rentier capitalism is a concept in Marxist and heterodox economics to refer to rent-seeking and exploitation by companies in capitalist systems.[1][2][3] The term was developed by austrian social-geograph Hans Bobek[4], describing an economic system that was widespread in antiquity and still widespread in the middle east, where productive investments are largely lacking, the highest possible share of income is skimmed off from ground-rents, leases and rents and thus in many developing countries, rentier capitalism is an obstacle to economic development. A rentier is someone who earns income from capital without working. This is generally done through ownership of assets that generate yield (cash generated by assets), such as rental properties, shares in dividend paying companies, or bonds that pay interest.[5]
This article is about Rentier capitalism. For other uses, see Rentier.Current usage[edit]
Current usage of the term 'rentier capitalism' describes the gaining of 'rentier' income from ownership or control of assets that generate economic rents rather than from capital or labour used for production in a free competitive market.[11] The term rentier state is mainly used not in its original meaning, as an imperialistic state thriving on labor of other countries and colonies, but as a state which derives all or a substantial portion of its national revenues from the rent of indigenous resources to external clients.
Guy Standing has claimed rentier capitalism has become predominant in capitalistic economies since the 1980s.[12] Brett Christophers of Uppsala University, Sweden has asserted that rentier capitalism has been the foundation of the United Kingdom's economic policy from the 1970s onwards.[13] With the return of high inflation to the United Kingdom in 2022, political economist William Davies surveys recent British economic events in light of rentier capitalism.[14]