5 ms·

>It is a market inefficiency caused by zoning density restrictions and overuse of historic landmark status which creates a politically induced artificial scarci

by 0x27081990 9y ago

>It is a market inefficiency caused by zoning density restrictions and overuse of historic landmark status which creates a politically induced artificial scarcity in housing (scarcity = rising prices). Then it is a government inefficiency, not a market inefficiency

davidf18 9y ago
In microeconomics is is called market inefficiency or market failure caused by special interests who influence passing laws. The terms are market inefficiency or market failure.
- Quinner 9y ago
  No, https://en.wikipedia.org/wiki/Government_failure https://en.wikipedia.org/wiki/Government_failure
  - davidf18 9y ago
    https://en.wikipedia.org/wiki/Rent-seeking https://en.wikipedia.org/wiki/Rent-seeking Pick up a microeconomics book and it will explain. In microeconomics market inefficiencies or market failures have 3 causes: 1) rent-seeking, 2) negative externalities, 3) information asymmetry. As I explained somewhere else in this post, Economist David Ricardo first discussed this problem of rent-seeking about 200 years ago. In this case, the wealthy landlords work to pass laws that give them wealth paid for by society or in this case renters. David Ricardo first discussed rent-seeking with the Corn Laws of Britain which had a tariff on all grains which increased the wealth of landowners at the cost of other members of society. https://en.wikipedia.org/wiki/David_Ricardo#Protectionism https://en.wikipedia.org/wiki/David_Ricardo#Protectionism
pizza 9y ago
I mean, this isn't by accident. Powerful people can advocate for their interests to change laws. It's the market ad extremum. It's only government inefficiency in the sense that lawmakers are vulnerable to influence, rather than bureaucrats imposing centrally planned government programs.
- scotpb 9y ago
  In a democracy the many have the upper hand, if they get involved. Blaming the few at the top seems to be a easy device frequently used today.
  - damnfinecoffee 9y ago
    America is not a democracy
  - __jal 9y ago
    It appears you are unfamiliar with public choice theory[1]. It turns out you are correct in a theoretic sense that very rarely works out in practice. Blaming 'the many' for failing democracy might be satisfying, but doesn't do any good. [1] https://en.wikipedia.org/wiki/Public_choice https://en.wikipedia.org/wiki/Public_choice
  - davidf18 9y ago
    The issue is that special interests have a much more focused need for the laws (or may have more money for lobbying or "buying" politicians). There are import tariffs on sugar that benefits sugar producers while "harming" society (and other countries that want to import sugar).
  - pizza 9y ago
    Plutocracies work differently.

davidf18 9y ago

In microeconomics is is called market inefficiency or market failure caused by special interests who influence passing laws. The terms are market inefficiency or market failure.

Quinner 9y ago
No, https://en.wikipedia.org/wiki/Government_failure https://en.wikipedia.org/wiki/Government_failure
- davidf18 9y ago
  https://en.wikipedia.org/wiki/Rent-seeking https://en.wikipedia.org/wiki/Rent-seeking Pick up a microeconomics book and it will explain. In microeconomics market inefficiencies or market failures have 3 causes: 1) rent-seeking, 2) negative externalities, 3) information asymmetry. As I explained somewhere else in this post, Economist David Ricardo first discussed this problem of rent-seeking about 200 years ago. In this case, the wealthy landlords work to pass laws that give them wealth paid for by society or in this case renters. David Ricardo first discussed rent-seeking with the Corn Laws of Britain which had a tariff on all grains which increased the wealth of landowners at the cost of other members of society. https://en.wikipedia.org/wiki/David_Ricardo#Protectionism https://en.wikipedia.org/wiki/David_Ricardo#Protectionism

pizza 9y ago

I mean, this isn't by accident. Powerful people can advocate for their interests to change laws. It's the market ad extremum. It's only government inefficiency in the sense that lawmakers are vulnerable to influence, rather than bureaucrats imposing centrally planned government programs.

scotpb 9y ago
In a democracy the many have the upper hand, if they get involved. Blaming the few at the top seems to be a easy device frequently used today.
- damnfinecoffee 9y ago
  America is not a democracy
- __jal 9y ago
  It appears you are unfamiliar with public choice theory[1]. It turns out you are correct in a theoretic sense that very rarely works out in practice. Blaming 'the many' for failing democracy might be satisfying, but doesn't do any good. [1] https://en.wikipedia.org/wiki/Public_choice https://en.wikipedia.org/wiki/Public_choice
- davidf18 9y ago
  The issue is that special interests have a much more focused need for the laws (or may have more money for lobbying or "buying" politicians). There are import tariffs on sugar that benefits sugar producers while "harming" society (and other countries that want to import sugar).
- pizza 9y ago
  Plutocracies work differently.