Eric Crampton: The return of the rent-seeking society

A long queue of people form a circle.

Each has a coin purse slung over a shoulder.

Each has a pocketknife, slitting the purse of the person ahead of them to steal some coins.

That many coins fall to the ground is tragic, but unavoidable.

Everyone could do better if they all put away their knives, but none will want to be first to try it.

Solving the social dilemma of the rent-seeking society requires everyone to throw their knives away at the same time. Everyone must trust that the person behind them is keeping their part of the bargain.

Point of Order: Aucklanders fund expansion of the screen industry

Aucklanders will be chuffed to learn the film studios they own as ratepayers are to be given a share of the millions of dollars the government is eager to pour into the film industry.

Mind you, they mightn’t be so chuffed to learn they will be financing the expansion  of the studios as taxpayers and as ratepayers.