rent control essays

rent control essays In theory rent control sounds like a perfect way to help the poor by setting the price ceilings on the rent, but in reality it only will hurt them. In the real world rent controls do not work like most people would expect them to, maybe its because not many people had their lesson in economics. Controls on rent will lead to less efficient allocation of scarce resources, and people at the top of the economic ladder will not be hurt. Only those at the bottom of the economic ladder will be hurt because even with price ceilings bottom ladder of the society is still not participating in the market. Instead of trying to transfer wealth from landlords to tenants, people at the lower ladder should be helped by allowing them to participate in the market just like the rest of economic society. The effects of the rent control will be shortages; higher prices and landlords would eventually allow their buildings to deteriorate, this is the time where government should let the "invisible hand " do its job and let the supply and demand determine the price of rent. Rent control has been enforced in many major American cities for many decades. The best know examples of rent control are in New York, which still has rent control from the temporary wartime price controls imposed during World War II. During 1970's it looked like price ceilings on rent would be the wave of the future. Boston implemented rent control during the inflation years of 1969 through 1971. Many cities that adopted rent controls eventually made them permanent even after they have expired. Even though rent controls were becoming very popular some cities still remained immune to this temptation. Chicago has one of the largest populations of renters in America, but they have never seriously considered adopting this system. At this time there are about 31 American states that have created laws and constitutional amendments forbidding rent control. Once in place, rent co...