Rent-seeking through subcontracting

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Stephanie Bustcakes

Stephanie Bustcakes

J. Clay Rowling
kiwifarms.net
Joined
Jun 23, 2016
A homeowner pays you to mow their lawn for $50. You then find some who is willing to mow the lawn for $30. You get $20 for doing nothing. Are you a shrewd, clever sigma because you found a way to get free money while everyone got what they wanted and agreed to, or are you a parasite who contributes nothing to society and are no better than being on welfare?
 
you are a Jew for doing this but it's really not that much of an issue and more power to you if you can farm money this way.
 
The homeowner is a parasite with a cushy nepotistic corporate/government job where they do nothing and can afford not to find the cheapest lawn mower or do it themselves.
 
If the guy cutting the yard speaks English, your arb works until he and the homeowner run into each other and have a chat.

If he doesn't, you're collecting $20 for the "service" of being able to communicate with the customer (until Paco gets deported). Either way, this market inefficiency is likely to fix itself.
 
What color is everyone involved?
 
Buy cheap, sell expensive - that's the principle of all business transactions. Doesn't matter if it's merchandise or labor.
If it's ethical depends on the context. If you can ask for $50 because you have a reputation of being a professional and reliable worker and then you hire some stranger to do the work without your supervision, only coming later to collect the money - then it's unethical because the owner can reasonably expect that you will be the one doing the job. If there are no such conditions and the owner just expects the job to be done, I think it is ethical and you are being paid for being an intermediary and organizing the work.
You should also take full responsibility if your subcontractor botches the work, and you should repair or pay for damages in such case.
 
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