rentiers

A rentier is an individual or entity that derives income from owning assets that generate passive income, rather than from active labor or business operations. This income is typically derived from rents on property, dividends from stocks, interest from bonds, or royalties from intellectual property. The term "rentier" emphasizes the passive nature of the income stream, as opposed to earned income from employment.

Historically, the rentier class has been associated with wealth and social status, often living off the income generated by inherited or accumulated assets. This can create a distinction between those who work for their income and those who live off the returns from their capital. The economic role of rentiers can be viewed in different ways. Some argue they are essential for investment and economic growth, providing capital for businesses and development. Others criticize rentierism as unproductive, suggesting it can lead to wealth inequality and a lack of incentive for innovation if income is solely derived from asset ownership.

Modern interpretations of rentierism often extend beyond traditional property ownership. The rise of digital platforms and intellectual property has created new avenues for rentier-like income, such as through app sales, software licenses, or online content subscriptions. The concept remains a subject of economic and sociological discussion, highlighting different pathways to wealth and the societal implications of income derived from ownership versus labor.