I am also confused by the way economic theorists use the word “rent. “ Am I correct in thinking it refers not simply to literal tenant landlord payments but rather to any net value gained from the mere fact of ownership.
In: Economics
It’s easy to be confused by this because there are three different uses of words going on here.
The first is the familiar usage of “rent”.
The second is “economic rents”, explained very well by /u/Twin_Spoons.
However this is not quite the same as “rentier capital” which is generally used to mean exactly what you think, value gained merely from owning assets. I think this is by definition an “economic rent” but it’s a more narrow term and is generally used in a pejorative sense – it’s typically associated with Marxist or other left-wing criticisms of an economy or group.
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