The psychological consequences of rent control

posted by
May 17, 2011
Foundation for Economic Education
by Sandy Ikeda  
Posted in Commentary

"People adjust to changing circumstances any way they can. Without flexible prices reflecting relative scarcity and guiding rental decisions, landlords and renters will use whatever resources at their disposal to allocate the available supply. But public authorities will also adjust as they see this 'chaos' — of their own making — and will use their authority to ration housing according to their 'superior' judgment. It’s this use of government authority to determine who lives where that opens a new dimension to the dynamics of their intervention." (05/17/11)  

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