And thus, the people who were meant to benefit from rent control actually are hurt by it. After all, need comes at different times for different people (depending on age, family status, jobs, etc.). They then take up the space of those who actually do need it. What often happens then is that more people who normally wouldn’t rent an apartment do so, even when they don’t need to. But rent control doesn’t mean that there are more apartments available, just that prices of the current ones are being kept artificially low. Rent controls are often enacted under the guise of preventing greedy landlords from taking advantage of and making otherwise well-to-do people homeless. These controls, while seemingly benevolent, can often have disastrous consequences for people. On the other hand, if prices fall due to supply being higher than demand, the government often comes in and provides a minimum. a shortage), sometimes government will step in to keep it from getting to high. When prices rise due to demand being higher than supply (i.e. This chapter begins to talk about price controls, which is what happens when a government begins to keep prices from varying freely with financial laws and policy. And so, without further ado, let’s get into it! Chapter Summary Like those previous posts, I’ll be giving an overview, and then some thoughts and analyses based on the chapter. If you haven’t read my first two chapter summaries for this book, here they are.
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