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The problem is that this tool to satiate the plebs actually makes the problem worse, because it introduces more plebs. Rent control reduces the quantity and qua
by saosebastiao 12y ago
The problem is that this tool to satiate the plebs actually makes the problem worse, because it introduces more plebs. Rent control reduces the quantity and quality of housing. This raises prices, making non-poor people poor.
- LandoCalrissian 12y agohttp://www.nytimes.com/2000/06/07/opinion/reckonings-a-rent-affair.html http://www.nytimes.com/2000/06/07/opinion/reckonings-a-rent-... This is an old Krugman Op-Ed from 2000 that says exactly that.
- idlewords 12y ago"satiate the plebs" - Don't be a jerk.
- akgerber 12y agoRent control doesn't reduce the quantity of housing when redevelopment, especially denser redevelopment, is essentially illegal due to zoning laws and a lack of by-right development. It might reduce the aggregate quality, but that's a moot question for those who couldn't afford a higher-quality unit. When the number of housing units is essentially fixed, rent control instead redistributes the profit from rental unit price increases from the property owner to the renter. And in a renter-heavy city, renters prefer lower-quality units they can afford to higher-quality units they can't.