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What constrains landlords rent prices? If you increase the minimum wage won't the landlords just subsequently increase rent? So essentially increasing minimum

• dragonwriter 12y ago
  > What constrains landlords rent prices? Competition. > If you increase the minimum wage won't the landlords just subsequently increase rent? Yes, they will -- as will people selling other goods that are in demand by the people receiving more income. Under any reasonable assumptions about supply and demand elasticity, those receiving more income as a result of the minimum wage increase will still be better off after considering the specific inflation in the price of certain goods and services resulting from the greater income received by them as a group, but not by as much as a pre-increase analysis that ignored the market-specific inflation would suggest. > So essentially increasing minimum wage is just funneling money to landowners? One effect of increasing minimum wage will be funnelling some money to landlords and others selling goods and services to the people receiving increases, while funnelling some money away from those selling goods and services to the people and corporatiosn paying the increases. (Often times, those will be the same people, though different specific goods and services.)