From P2P Foundation
Jump to navigation Jump to search

From the fallible Wikipedia: Renting is an agreement where a payment is made for the temporary use of a good or property owned by another person or company. Economic rent is the difference between what a factor of production is paid and how much it would need to be paid to remain in its current use. Pure economic profit is the increase in wealth that an investor has from making an investment, taking into consideration all costs associated with that investment including the opportunity cost of capital. Accounting profit is the difference between price and the costs of bringing to market whatever it is that is accounted as an enterprise (whether by harvest, extraction, manufacture, or purchase) in terms of the component costs of delivered goods and/or services and any operating or other expenses. (emphasis added)

By arbitrary, but somewhat commonly accepted definitions, the term Rent is sometimes used to denote the real Costs of sharing Physical Sources, and may or may not include Economic Rent - while Economic Rent is purely Price Above Cost.

I think Pasquinelli, Matteo is equating Profit with Economic Rent, even though he [mis]uses the term rent in his text. Sigh.

I wonder if we could define the term Rent on this wiki as the recurring payment of real costs, and use Economic Rent when speaking of that form of Profit? Otherwise, what will we call such a thing? Tax claims to have a very similar purpose to (the non-Profit (At Cost) part of Rent), though that word tends to invoke even worse feelings (and rightly so, considering the misallocation and general failure of a system that punishes improvements while rewarding speculation...). -- Ownut