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Privatizing natural monopolies. The classic productive capitalist wants to found a company to provide a new, socially useful good or service and make money by sales. In contrast, the classic parasitic rentier wants to bribe the state legislature into privatizing and selling state roads so that he or she can make money without effort or innovation every time somebody drives and pays a toll. Not only progressives but mainstream conservatives used to agree that natural monopolies, such as many infrastructure services—water, electricity, transportation — should be either publicly owned or publicly regulated utilities. Today, however, some plutocrats, seeking guaranteed, recurrent streams of money for little or no effort, fund politicians and ideologues who favor privatizing or deregulating infrastructure and public utilities and cutting or voucherizing Social Security and
Anti-inflationary macroeconomic policy. The rentier class overlaps largely with the creditor class, much of whose wealth is in the form of debts that must be repaid by governments, businesses and individuals. In all times and places, the creditor elite has lived in fear that its wealth may be reduced by inflation, which permits the debtors to repay their debts in currency, which is nominally the same but in reality of ever-dwindling value.
Moderate inflation is the friend of governments with high debt loads, allowing them to pay down debts more easily without hurting the economy by raising taxes too much or cutting spending too much. Most businesses can live with moderate inflation, as long as they pass on price increases in inputs to their customers. Nor is moderate inflation a threat to the working-class majorities in the U.S. and similar industrial democracies, as long as wages and social insurance, like Social Security, are adjusted for inflation. (Only an affluent minority of Americans have substantial private retirement savings that could be harmed by inflation.)
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