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How rent control actually hurts both tenants and landlords

Demand curves slope in a downward direction.  This means that the higher the price, the less of an item, or good, or service, will be sought.  The more road blocks, hurdles, thumbtacks placed in the way of any given action, the less likely it is to occur.  Economists do not agree on many things, but on this insight, there will be nary a dismal scientist who will not acquiesce.

Yet there are several public policies in place that are incompatible with this commonsense understanding.

Consider first residential rental units.  New York City, San Francisco, Cleveland, and another half-dozen major cities are now offering free legal advice to tenants threatened by eviction.  At present, this benefit is afforded mainly to those accused of a crime who cannot afford a lawyer, on the grounds that such legal aid is needed to provide equal justice for rich and poor alike.  Now it is being extended to renters.

Some commentators even think this strengthens the hands of tenants and reduces homelessness.  They reckon, however, in the absence of downward-sloping demand curves.  They think only in terms of immediate, not long-term effects. […]

Read the full story from American Thinker

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