Stiglitz And The Rent Seeking Industry

Since investment banks seen themselves as being a top ranking market to any other field and that for those people who choose other career would seem to be less smart, which mainly destroys the amount for students entering other public sectors. This phenomenon has mainly created inequality to the society and is a chief cause of creating economics unbalanced development. For instance, in some fields such as agriculture, or customer service, there is a huge need of elite graduates. However, with the stereotype exists and the pressure from investment corporations, students who did not decide to enter the financial careers would be seen as less smart, even if they did not consider entering into this sector in the first place. even if they had not

The opportunities for “rent seeking” has widened the gap between the privileged and underprivileged and somehow reduces the economy efficiency by cutting down resources for people to use. Individuals are finding ways to balance and level up the society where everyone holds the same power and rights. However, achieving this process is very difficult. The primary cause is that the top one percent people holds much power but the majority holds less. Government policies are a major factor creating those problems. In Stiglitz’s essay, he points out why there is an imbalance between supply and demand of power, “[W]e have a political system that gives inordinate power to those at the top, and they have used that power not only to limit the extent of redistribution but also to shape the rules of the game in their favor, and to extract from the public what can only be called large “gifts” (396). These large “gifts” given by the government do not contribute to the market, but only adding inequality to the economy. More importantly, by using rent seeking, the government takes the money from the lower and gives it to the upper class. By adding up wealthy to the top class, the gap between upper and lower has gradually increase, and the power between different classes change in the contrary. This phenomenon can also be seen in Ho’s essay, where most of the time those large corporations from Wall Street hired

In the economic field, politics can sometimes damage an economic system, by creating monopoly between companies. Some small corporations might hence losing themselves when there is a competition between a large corporation. As a student, we might also lose our rights and opportunities when having an unfair competition with elite students. So in order to level up our authority and power, we have to seize every opportunity, and do the best we can. There is a saying that “In society they say everyone is equal, but in every corner there is inequality”. No nation in the world has yet achieved full equality for everyone, so when we face unequal treatments or inequality, we