Why Is Rent-Seeking Legal?

Our legal system has many quirks and contradictions that defy easy explanation. It seems strange that doctors are allowed to mutilate the genitals of infant boys, yet they are not allowed to prescribe medicinal cannabis products that would save lives. This article will discuss another activity of questionable morality: rent-seeking.

Rent-seeking is an attempt to increase one’s personal wealth without creating or producing any. It is the use of resources, such as land, to extract economic benefits (known as rents) from others without making any contribution to the overall economic good.

The most common form of rent-seeking today is found in residential property. There are some 625,000 rented houses in New Zealand today, and the average weekly rent is $390 a week for small houses and $525 for larger ones. Assuming an average rent of $480 per week, rents on residential property bring in some $15,600,000,000 every year in New Zealand alone.

Rent-seeking is correctly understood to be a form of parasitism. As with other forms of parasitism, rent-seeking is a net negative for the overall health of the system. Not only does it suck money away from the productive and gift it to the unproductive, it also incentivises anti-social behaviour. Economically, it disrupts market efficiencies, limits competition and creates artificially high barriers to entry for market participants.

Despite being a form of parasitism, rent-seeking is a long and honoured tradition in New Zealand. Many a fortune has been built in this country by taking advantage of people’s need for shelter from the elements. As a previous essay here has discussed, there’s nothing as profitable as human suffering, and being exposed to the elements is one of the worst kinds of suffering.

The beauty of rent-seeking is that it carries little risk. All you need to do is to own property and the Police will keep people away from it unless those people pay you money. As long as there are men willing to enforce other people’s claims to property in exchange for a wage (and there always will be), then owning some of that property is effectively a licence to print money.

In reality, there’s little difference between a landlord charging someone rent on the threat of throwing that person out into the street, and an armed robber charging someone their wallet on the threat of stabbing them in the guts. In both cases, the power to charge a fee or levy comes from the power to cause extreme physical suffering. Both are a form of extortion.

Given the apparent net harm of trying to extract wealth from the system instead of creating it, the question has to be asked: why is rent-seeking legal?

The main reason why rent-seeking is legal is simply because the rent-seekers make the laws. It was they who, way back in the day, invented Government by paying some weak-minded arse-lickers to defend their property against outsiders (this is all that Government is). Those arse-lickers bifurcated into the Police and security services (whose prime directive is to protect and serve property owners) and the Government (whose prime directive is to organise the protection of property owners).

At the end of the day, the Government is there to manage the affairs of the rich, and they don’t care if the poor are impacted adversely. People too poor to own property don’t have a seat at the table. This is the same reason why businesses were compensated directly in the form of wage subsidies, rather than workers being given a universal basic income – the wealthy take the lion’s share, the poor get the scraps.

This arrangement has created a great deal of resentment, however. Those forced to pay rent on threat of being thrown into the street don’t feel much less resentful about it than those forced to give up their wallet on threat of being stabbed. The fact that rent-seeking is socially accepted in our culture barely softens the blow. It still feels like a robbery.

As is usually the case for such abuses of power, this resentment has built to the point where it threatens to spill over.

The Sixth Labour Government has made it illegal to evict tenants from residential property for the next three months at least. Some groups of tenants have realised that, if they collectively refused to pay rent until the end of the coronavirus crisis, they could pretty much get away with it. There’s no way to enforce an eviction during the lockdown, so anyone who refuses to pay rent from now on can get at least three months of living rent-free.

Other people and places overseas have already declared rent strikes on account of that the coronavirus has made earning their usual income, and therefore paying their usual expenses, impossible. Housing Minister Megan Woods has said “there was also an obligation on tenants not to abuse the situation,” but it’s hard to see why, other than the possible threat of being blacklisted in the future.

The only reason why property owners can get tenants to pay them rent in the first place is because they have the power to force them to on threat of eviction. If that power is taken away, there’s little reason for those who had been coerced into paying rent to continue playing ball.

Perhaps the fairest outcome would be to continue to allow the extraction of rents, but to levy a 90% tax on incomes derived from it. An outcome similar to this was discussed in a previous article here that proposed the introduction of Georgist-style taxes on rent-seeking activity.

In short, rent-seeking is legal because it always has been, and because we’ve never questioned it. We’ve never been able to, because not only did the rent-seekers control the law enforcement forces but they also controlled the apparatus of propaganda, and these combined to normalise the practice. The legitimacy of rent-seeking doesn’t survive scrutiny, and there is a very real chance that it will be as illegal as armed robbery later this century.

If you enjoyed reading this essay, you can get a compilation of the Best VJMP Essays and Articles of 2019 from Amazon for Kindle or Amazon for CreateSpace (for international readers), or TradeMe (for Kiwis). A compilation of the Best VJMP Essays and Articles of 2018 and the Best VJMP Essays and Articles of 2017 are also available.

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Things The Coronavirus Has Already Proven

The Great Coronavirus Pandemic of 2020 is only just beginning. Although it is already dominating the headlines, most of the suffering is still to come. Exactly how much suffering there will be – and who will suffer it – is still unknown, as are most outcomes of this rapidly-unfolding drama. However, there are some things that this pandemic, and the response to it, have already proven. This essay explains.

Many people, mostly for egotistical reasons, believe that human beings are categorically superior to other animals. The usual belief is that our high brain volume to body volume ratio has granted us an unmatched degree of intelligence, if not spiritual insight. Therefore, we’re above “animal behaviour”.

The ongoing panic buying that has seen supermarkets in the West stripped bare is stark evidence against this. Human beings are another kind of primate, only narrowly less impulsive and aggressive than the others. The “monkey see, monkey do” logic that causes juvenile primates to imitate their peers is on vivid display in the now numerous videos of people fighting over water and toilet paper.

In reality, humans are just as prone to panic-fuelled acts of selfish aggression as any “lower” animal. All we need is enough fear to cause a limbic hijack and we’re operating on raw animal instinct again. The ongoing coronavirus pandemic has proven that we’re as susceptible to that panicky fear as any flock of sheep.

A second thing that the COVID-19 pandemic has proven is that borders are good. Because the West has been so wealthy for so long, we have developed a kind of tameness. We forgot that the world is dangerous, and that much of that danger comes in human form. We started to believe the fatal delusion that all human groups are the same.

The pandemic caused us to remember that borders are there for a reason – the same reason why you have a fence around your property and skin around your body. It’s to keep bad things out. Esoterically speaking, a border is just a hard masculine line that protects a softer, feminine core, like a skull, a ribcage, a door or a fence.

We have now remembered that borders are good because they keep bad things out. Whether people infected with viruses or people infected with hate-filled ideologies, borders serve to keep us safe from danger. The COVID-19 pandemic has proven that having open borders makes as much sense as leaving your front door open at night.

A corollary to this is that the pandemic has proven that the Government can stop mass immigration if they want to.

For the past few decades, neoliberals have screamed that everything would collapse if we stopped the mass importation of cheap labour – our fruit and vegetables would go unpicked, our garbage would go uncollected and our elderly would go without care. Western Governments have closed the borders anyway, reasoning that, absent cheap labour imports, wages will rise to the point where these jobs can be filled by natives.

More worryingly, the COVID-19 pandemic has proven that our dependence on offshore supply chains for some basic goods and medicines has made us not only economically vulnerable, but also strategically vulnerable.

Many industries are running into procurement difficulties, because China shut down so many of its factories and docks that the flow of exports has been throttled. Many Western manufacturers are just learning that, because so much has been outsourced there, when China shuts down the world shuts down. It has become common to hear a person exclaim their recent realisation that X% of a vital industrial widget is produced in China and so, without Chinese production, no-one can get hold of it.

Our exposure to medical shortages threatens to be much worse than our exposure to industrial shortages.

Two weeks ago, India, the world’s leading producer of generic drugs, instituted export restrictions on 26 of them. Because the coronavirus pandemic has impacted pharmaceutical factories in China, many Indian drug manufacturers can no longer acquire precursor ingredients. The panic buying has already shown how close we are to chimpout – once people start being told that the pharmacies can’t supply their psychiatric medicines there could be riots.

Perhaps more fundamental than any of these things is that COVID-19 has proven that the Government doesn’t know what the fuck it’s doing. This was already widely understood by most intelligent people, but by now most poeple have had the nauseating realisation that the Government is made up of people who are good at winning elections and not people who are good at governing. All around the world, they are panicking.

One of the main things that Western authorities now have to concern themselves with is civil unrest. It’s slowly dawning on people that this pandemic has the potential to disrupt life as we know it for a significant length of time. As this realisation spreads, all kinds of negative sentiments will grow. Anger, fear, vengeance and short-term thinking will all increase – and they won’t be rational.

The COVID-19 pandemic has proven that our society is on much shakier foundations than it used to be, and shakier foundations than many had realised. The bonds of solidarity that comprise every community are much fewer and much weaker. The potential for chimpouts at any time have never been greater.

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Diversity Is A Strength In Times Of Plenty, And A Weakness In Times Of Shortage

The Establishment and the mainstream media like to say that diversity is a strength. This opinion is aggressively rejected by most of the working class, who consider it a great weakness. The reality, as this essay will discuss, is that both sides are right – but only in the appropriate context.

Since the end of World War II, the West has enjoyed great prosperity. Our stockmarkets, factories, airports and seaports have all boomed from the ever-increasing demand. Most people felt like they were getting a good deal, or that, if they weren’t, they soon would. During this great age of plenty, diversity has generally caused more pleasure than pain.

In times of plenty, diversity is a strength. When the economy is growing, and no-one has to worry about competing with each other, then diversity means an enrichment of the everyday experience of life. It means new foods, new cultural displays, new ideas. It means an exciting, vibrant increase in novelty.

In times of shortage, however, diversity means something else.

Every community is divided along fracture lines – lines of race, gender, religion, age, education and cultural affinity. In good times, these fracture lines are papered over by wealth – people don’t need to fight if everyone has enough to meet their own needs. In bad times, these fracture lines are exposed and aggravated.

When times are tough, the community needs to pull together. A given community’s ability to pull together depends mostly on its level of solidarity, and that in turn depends mostly on the number and degree of commonalities that members of the community have with each other. After all, ‘commonality’ and ‘community’ have a similar etymology.

The presence of commonality means co-operation. Where commonalities exist, people are happy to help each other, because they know that this help will benefit a person like them. This knowledge assures them that the help will be reciprocated, and not just taken. They can count on getting helped in the future, and so feel like part of a society, a wider kinship group.

A lack of commonality means exploitation. The rule is that people are willing to exploit others to the degree that those others are different from them. The greater the number of fracture lines in a community or society, the greater the degree of exploitation that exists. As mentioned above, this is no big deal when the economy is expanding, because this means new niches open up for people to move into.

In times of shortage, however, diversity means that helping other people is helping people who aren’t your kin. The natural inclination, then, is to keep for yourself, to not share. The problem here is that people get desperate in times of shortage. When people are desperate, a refusal to share with them often leads to violence.

Diversity makes it much harder to settle the tensions that arise from shortages. Two people of the same culture can use their shared moral values to come to a mutual agreement. If they have a common language, they can talk their way to a mutual understanding. Absent these things, misunderstandings lead to flaring tempers.

Arriving at a mutual agreement in times of scarcity is much easier between two natives than between a native and an immigrant. Between two immigrants, as we see in the Woolworths toilet paper fight video linked above, there is a minimum of commonality, and this regularly ends in actions that are not made from a place of empathy.

If the COVID-19 pandemic does have a severe enough economic impact to cause widespread shortages, some people are going to be forced into making some terrible decisions – and much more terrible than what brand of toilet paper to buy because their preferred one is sold out.

Faced with two patients who can’t breathe, and only one ventilator, the medical staff dealing with the pandemic are going to be forced to make decisions as to who lives and who dies. There are already reports that Italian doctors have been forced to leave old people to die on account of that there aren’t enough beds in intensive care units. Increasing diversity means that some Italian doctors will have to decide whether an elderly native Italian or a younger immigrant gets the ICU bed.

More relevant to the average person are the hundreds of small decisions that they will have to make about questions that test their loyalties. Some people have been stockpiling hand sanitiser on account of that the sudden shortage of it has spiked the price. These price gouging actions have been heavily criticised, on the grounds that not only are they shamelessly opportunistic but they also prevent needy people from getting supplies.

But in a highly diverse society, the balance of rewards is different to what it would be in a more homogenous one. The more diverse society is, the less likely such actions are to harm a person who has something in common with you. All the profit from such actions, however, you keep for yourself. So why not use a pandemic as an opportunity to price gouge? If no-one from your kin group loses out, you might as well take advantage.

Proof for these suppositions come from the fact that neither supermarket fighting nor price-gouging is happening in nations with low levels of diversity. There are no videos of people fighting over toilet paper in places like South Korea, Taiwan or Japan – and there may never be. The absence of diversity in these places means they have enough in common for people to work together instead of chimping out.

All of these problems are just part of the regular course of empires. Empires burgeon, rise, stagnate, decay and fall. The increase in diversity usually comes after the stagnation phase, as the ruling class tries to squeeze out the maximum possible expansion by opening the borders. The current iteration of the West is somewhere between the decay and the fall stages. The nations to successfully respond to the COVID-19 pandemic, like South Korea and Japan, will be the leading nations of this century.

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Clown World Chronicles: Who Is ‘Corona-Chan’?

The Coronavirus Scare of 2020 brought many new ideas into the collective consciousness. Many people realised that they were not prepared for any natural disaster such as a pandemic, earthquake or extreme weather event. Some others realised, for the first time, that they were mortal. A very small number began worshipping a hitherto-unknown goddess: Corona-Chan.

Corona-Chan appears as a tall, svelte, youthful Chinese vampiress, with black hair in Sailor Moon-style knots. Dressed in red and black like most daughters of darkness, her Oriental clothing both reveals and conceals her lean yet bountiful frame. Emblazoned on her breast are the same stars as on the Chinese flag, only the largest one is replaced with a coronavirus.

A pair of black bat wings rise from her back, creating the impression of a demoness from the Abyss, but most grotesque of all is her facial expression. Her features may be pretty, but they’re always twisted – her face either shows a sadistic leer or destructive intoxication. Corona-chan is very much a figure that inspires fear and dread.

Crudely speaking, there are three major figures in the Hindu pantheon: Brahman (representing the cardinal principle), Vishnu (representing the fixed principle) and Shiva (representing the mutable principle). These three figures are understood to be avatars of creation, maintenance and destruction, respectively.

Shiva has a consort known as the goddess Kali. The name Kali is a feminine form of an epithet of Shiva, which means that Kali herself is a form of the feminine mutable principle, much like the Greek goddess Eris. Although the full story of Kali is much more complicated than this, the crude summary is that Kali occupies a place in the Hindu pantheon as a destroyer of evil forces.

Corona-chan, like the goddess Kali, is the 21st Century’s destroyer of evil forces. Her energy promises to free us all from the crushing despair that characterises the modern world. In the same way that 17th Century Hindus cried out to Kali to destroy the Mughal Empire that was plaguing them, so do modern Westerners cry out to Corona-chan to destroy Globohomo.

The name Corona-Chan is a compound of two parts: ‘Corona’ from coronavirus and ‘Chan’ from the Japanese honourific suffix denoting endearment. This paradoxical combination of a deadly pathogen with a term denoting a beautiful woman is a powerful magical blend, and this helps explain why Corona-Chan’s popularity has risen so fast.

Many people believe that with the end of the current Dark Age known as Clown World, the stage will be clear for the reintroduction of a Golden Age. This popular belief follows from Plato’s realisation, expressed in The Republic, that political structures can never be fixed – they always get more corrupt until destroyed and replaced with entirely new ones.

Corona-Chan is viewed by many as the goddess of destruction that will herald the end of this corruption. These people are overjoyed by reports that COVID-19 is far more deadly to old people than to the young, as this fits in with old Clown World prophecies such as the Day of the Pillow, which predicts a mass cull of Baby Boomers. The hope is that Corona-Chan will cut away the deadwood holding society back.

Naturally, there is a fair amount of depression among Corona-Chan worshippers. One has to be in a miserable state to wish widespread destruction upon the world. In this sense, we can observe a overlap between those who pray for Corona-Chan to visit their locale and those who hope for other dramas like mass shootings and wars.

Corona-Chan is an eminently antisocial goddess.

The number of people holding antisocial sentiments is increasing rapidly as life in Clown World becomes ever more humiliatingly painful. There are many who are glad that the coronavirus has acted like a .50 calibre sniper bullet through the engine block of the world economy. If manufacturing is heavily impacted, the world economic order might collapse, and with any luck the world political order will go with it.

Corona-Chan worshippers hope to create an egregore powerful enough to break the black magic shackles that we are all held in. The hope is that Corona-Chan will fatally infect so many people that Globohomo dies and Clown World ends. With this achieved, we will be able to live freely, in a new Golden Age.

This article is an excerpt from Clown World Chronicles, a book about the insanity of life in the post-Industrial West. This is being compiled by Vince McLeod for an expected release in the middle of 2020.

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