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Old 08-22-2019, 12:46 AM
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Kobal2 is offline
Join Date: Mar 2008
Location: Paris, France
Posts: 19,111
Originally Posted by Corry El View Post
Rent control is price fixing. Price fixing creates misallocation of resources and perverse incentives as compared to market price discovery. If the outcome of market pricing is judged unacceptably 'unfair', a subjective judgement call, then collecting taxes to subsidize people who cannot pay market prices is virtually always preferable to govt price fixing.
Except that IME people are a lot more OK with earning lower rents than with any talk of tax hikes. Even if the tax hike would be smaller than the loss they make on controlled rent. Psychologically, money leaving the coffer "hurts" more - that's true in France (where we already pay pretty high taxes, although Macron is hard at work to fix that. For the very rich, that is.), and from what I can gather from across the pond it's even more true in the US where any politician talking about raising taxes for any reason whatsoever might as well shoot themselves in the face on live television and spare themselves some trouble. And we're talking about raising taxes to help the least fortunate, even... fuggedaboudit !
Rent control might make less economic sense, but it's still easier to enable than active redistribution of resources. I mean it's still very difficult to get it passed, but... yes.

Originally Posted by GreenHell
If you deal with a cartel, you are going to get gouged. If you need to deal with the intersection of TWO cartels . . .
But cartels and monopolies are, and have always been, the end result of capitalism and unbridled greed throughout history. And it pretty much can't proceed otherwise, barring some form of active intervention (which never happens barring catastrophic prospects because, again, unbridled greed).
Left alone, the accumulation of capital within the hands of some of the people makes it much easier for their children to accumulate even more capital in turn, invest, own more land etc... Over time capital gravitates towards the hands of fewer and fewer people who become more and more politically, socially and culturally powerful and skew the system even further in their favour ; while the proportion of people living in abject, way below average conditions keeps increasing. Rinse, repeat until foreign invasion, bloody revolution & land reform or Red Scare prompting a hurried redistributive effort - Interesting Times in all cases.
Then the cycle begins anew because even though we keep writing it down people just can't seem to History worth a brass fucking farthing.