3 ms·
Rent control is an interesting argument because it's clear that it lowers total surplus but there's no way to really know if lowers total utility since the the
by colinmhayes 6y ago
Rent control is an interesting argument because it's clear that it lowers total surplus but there's no way to really know if lowers total utility since the the rate of surplus to utility conversion is dependent on wealth. So now we get people arguing past each other instead of with each other because their priors aren't aligned. One group wants to maximize surplus and the other utility. We need to answer that question before we can move onto the policy decisions.
- Pfhreak 6y agoI think it might not be zero sum. While sometimes we have policies that maximize one for the sake of the other, not all policies will. Some will maximize both, others will minimize both. The solution likely includes some policies that will make tradeoffs (e.g. like rent control), offset by other polices that maximize surplus at the cost of utility. Yes, this means some policies will be working at cross purposes, but different people in our society will be impacted differently by those policies. (E.g. there are some folks for whom rent control means being able to live in their community at all). So it might be best to not try to chart the most efficient course from the outside, and instead accept some inefficiencies if it means making positive moves now.
- imtringued 6y agoThe fundamental problem with rent control is that it is damage control after the fact. Politicians just introduce rent control to get voters off their neck and then do nothing to solve the actual problem, because they don't have to.
- 8note 6y agoIt solves one out of two problems: How do you keep people in their homes? How do you get everyone into a home? Tearing down existing housing to redevelop into high rise apartments similarly only solves one of the two