Rent Control
Same as the last one, I wanna see how NS thinks :D
Poll coming soon
Stone Bridges
07-02-2006, 05:06
Why do people make post like this? Comon, put more information into your post people!
Alright, I'm against rent control. It artificially lowers the market price, increasing demand while lowering supply, which means there's a shortage (and I don't think anyone thinks shortage = good). It also means the rich who do get to live in rent control pay a lower price then they would otherwise, and I think I know how much most people here want to take money from the rich... :D
[NS:::]Vegetarianistica
07-02-2006, 05:33
what's rent control?
Stone Bridges
07-02-2006, 05:36
I say we let the market control the rent!
Liverbreath
07-02-2006, 05:46
Vegetarianistica']what's rent control?
Laws that ensure if you have a job and pay 800.00 per month for a cracker box studio apartment, the crack whore in the 2 bedroom suite next door only pays 50.00.
AllCoolNamesAreTaken
07-02-2006, 05:47
I am torn on the issue. My libertarian side screams "let the landlords charge whatever they want", but the fact that I am not a lottery winner speaks otherwise.
I know it is very different in various countries and cities, but here (Florida), I have to spend $900 just on rent in a one bedroom apartment, that isn't on the beach or anything. The only "affordable" rent is in bad parts of town, and even there you still have to pay $500 for a one bedroom. When I was in college (7 or 8 years ago), rent was $400 on a three bedroom HOUSE. Prices have gone up so much in the U.S., I saw a recent statistic about the rise in college grads who have moved back in with their parents, because they cannot afford their own place. (will try to find a linky) You have to be married and pulling in two incomes to manage it.
There needs to be a better method, but strict rent control does nothing but turn every apartment that isn't for millionaires into a ghetto.
edit: a few links on the "Boomerang Generation"
http://www.ampersandcom.com/ampersandcommunications/boomerangdisconnect2.htm
http://www.guardian.co.uk/britain/article/0,2763,1126905,00.html
http://alumni.indiana.edu/magazine/may-jun03/homeagain.html
Neu Leonstein
07-02-2006, 06:12
Maybe the OP has just started an intro course in economics? Sounds like it.
Anyway, the difference between a minimum wage and rent control is that rent control can relatively easy be made into a supply v demand diagram. And then you can easily work out that it doesn't help anyone, especially not the poor.
But the labour market doesn't work like that. We don't have the info, the worker doesn't have the info and the employer doesn't have the info to make good decisions based on a simplistic diagram.
There is no constant MPL. How productive a unit of labour is depends on the worker's mood. A worker can control how productive he is, and therefore you can't draw either a demand or supply curve.
So I'm afraid the age-old example doesn't hold.
Maybe the OP has just started an intro course in economics? Sounds like it.
Nope, but I did come across an econ book going through my old stuff and felt "inspired" if you will.... :D