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Rent control is not working because it cannot work - it is directly contradicting the laws of nature, such as supply and demand. Housing gets build in order to
by 988747 5y ago
Rent control is not working because it cannot work - it is directly contradicting the laws of nature, such as supply and demand. Housing gets build in order to extract profit from it. If you disallow profit, you are disincentivizing new housing construction, and you create perverse incentives to work around rent control.
- TheOtherHobbes 5y agoStrange how rents were manageable in the UK while there was a national not for profit council house building program. Perhaps there's a lesson to be learned from that.
- imtringued 5y agoLand is expensive and nobody wants to tax it. More generally. Non reproducible assets/aka monopolies can extort more money out of people now that people have more money thanks to low interest rates. Notice how being rich doesn't make you rich because of abuse of monopoly power to do perfect price discrimination.
- occz 5y ago>the laws of nature, such as supply and demand. This has got to be satire, right?
- 988747 5y agoIt is actually not. Basic laws of economy are much like the laws of physics: they work the same whether you believe in them or not. Trying to circumvent them with legislation such as rent control leads to various second order effects. For rent control that means limited supply and worse quality of the available apartments. Also: people unwilling to move, occupying apartments much too big for them, just because they are rent-controlled.
- occz 5y agoI know that the observable properties of economic systems happen regardless of belief. It's just seriously strange to equate them with 'laws of nature'. Next thing you know someone is going to call something like the law of demeter a law of nature. Just sort of absurd, really.