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> Thus no single one has much power at all. Property owners are effectively cartelized - that's how they got the supply restrictions passed in the first place.
by worstspotgain 2y ago
> Thus no single one has much power at all.
Property owners are effectively cartelized - that's how they got the supply restrictions passed in the first place. You can't "move your way" out of the market rent, and the market rent is the cartel rent. It's set to the same level as the monopoly rent.
It's even higher than if there were only two enormous landlords that did not benefit from the collusion built into the supply restriction system. A landlord duopoly would not have the political power to get the restrictions passed in the first place.
- jjav 2y ago> A landlord duopoly would not have the political power to get the restrictions passed in the first place. I'm at a loss on how to respond to this. This is exactly the polar opposite of how our (USA) political system works. Huge corporations are very well connected with the politicians. They contribute to their campaigns, go to all their fund raisers, play golf together. In exchange, they get to have a massive influence in how laws are written in their favor. You can search for endless cases where these companies directly write the text of the laws and then just pass it through their buddy legislator. In any market where there are only a few huge players, you can be 100% certain those players are connected with the politicians and buying their way into favorable legislation at every point. The only way to prevent that corruption is to have lots of tiny competitors, none of whom are rich/powerful enough to drive the laws to their benefit.