Saturday, June 27, 2009

Reverse Rent-Seeking: FedEx

Rent-seeking is what GE does: get Congress to write laws which force people to spend money on YOUR products, and yours alone. (It works just as well with regulators, of course.)

Then there's 'reverse rent-seeking,' which is getting Congress (or a regulator) to minimize YOUR expenses, and yours alone.

That's exactly what FedEx is doing, folks. Facts supplied by Muth, and HT McCain.


Brown Bailout said...

Dad29: You are incorrect in your analysis. UPS chose a business model when they entered the air package delivery business that was different than the one that FedEx Express operates under, with full knowledge that they would be covered under different labor laws. Now, UPS wants Congress to force FedEx Express to change it's business model to the one that UPS chose under the guise of "levelling the playing field".

IF UPS regrets their strategic decision, they should seek to undo it, but to go to Congress and try to force their mistake on their competitor is outrageous. To learn more, go to

Dad29 said...


Wasn't it FedEx who bought REA to facilitate their "railroad" status?