3 ms·

Maybe read https://jwmason.org/slackwire/considerations-on-rent-control/ https://jwmason.org/slackwire/considerations-on-rent-control... a bit, basically histor

Maybe read https://jwmason.org/slackwire/considerations-on-rent-control/ https://jwmason.org/slackwire/considerations-on-rent-control... a bit, basically history is repeating itself with the economic consensus on the minimum wage. Also see this comment https://jwmason.org/slackwire/considerations-on-rent-control/#comment-13300 https://jwmason.org/slackwire/considerations-on-rent-control... and the author's response. One can argue that it's less that the theory is "wrong" but that that the theory doesn't match reality: the housing and employment markets are deeply flawed in hard-to-fix ways. Maybe we want to fix these markets, but if we want to intervene at that scale, we might as well be open to other non-market strategies at managing those resources too. In the mean time, rent control is "easy" with empirically demonstrated benefits.

JamesBarney 6y ago
All the papers jw mason quotes say the theory matches reality. Basically that rent controls strong enough to make a difference reduce housing quantity and quality.
- Ericson2314 6y ago
  Well, these are better models fine-tuned to the actual situation. That's great I was referring to the the econ-101-style reasoning that the mainstream has used when engaging with public to say the minimum wage or rent control is bad.
  - JamesBarney 6y ago
    Econ 101 style reasoning doesn't tell us whether the minimum wage or rent control is bad. Only that it's inefficient. It also tells us it will reduce the quantity and quality of jobs and rentals. But whether or not that's the right choice is going to depend on a lot of things theory can't tell us like how elastic the market is or what we value.
    - Ericson2314 6y ago
      Do agree that "inefficiency" and "reductiontion of the quantity and quality of jobs and rentals" from the econ 101 model is not true in the real world? Yes people can value many different things, and I fully support that, but I think before we get to those subjective things it's better to get into the objective parts,
Ericson2314 6y ago
See also https://phenomenalworld.org/sources/political-sun https://phenomenalworld.org/sources/political-sun which links to a few things including J.W. Mason piece. If doubting the mainstream economic consensus still seems a bit edgy, consider that much of it is still bound up in the supply-side scarcity-based thinking this forum loves to disdain. In this case, the lack of the urban growth we could have dwarfs other sins.

JamesBarney 6y ago

All the papers jw mason quotes say the theory matches reality. Basically that rent controls strong enough to make a difference reduce housing quantity and quality.

Ericson2314 6y ago
Well, these are better models fine-tuned to the actual situation. That's great I was referring to the the econ-101-style reasoning that the mainstream has used when engaging with public to say the minimum wage or rent control is bad.
- JamesBarney 6y ago
  Econ 101 style reasoning doesn't tell us whether the minimum wage or rent control is bad. Only that it's inefficient. It also tells us it will reduce the quantity and quality of jobs and rentals. But whether or not that's the right choice is going to depend on a lot of things theory can't tell us like how elastic the market is or what we value.
  - Ericson2314 6y ago
    Do agree that "inefficiency" and "reductiontion of the quantity and quality of jobs and rentals" from the econ 101 model is not true in the real world? Yes people can value many different things, and I fully support that, but I think before we get to those subjective things it's better to get into the objective parts,

Ericson2314 6y ago

See also https://phenomenalworld.org/sources/political-sun https://phenomenalworld.org/sources/political-sun which links to a few things including J.W. Mason piece. If doubting the mainstream economic consensus still seems a bit edgy, consider that much of it is still bound up in the supply-side scarcity-based thinking this forum loves to disdain. In this case, the lack of the urban growth we could have dwarfs other sins.