Rent control creates a shortage of housing, which makes it hard to find a place to live.
Question:
Rent control creates a shortage of housing, which makes it hard to find a place to live. In a price-controlled market, people have to waste a lot of time trying to find these scarce, artificially cheap products. Yet Congressman Charles B. Rangel, the chairman of the powerful House Ways and Means Committee, lived in four rent-stabilized apartments in Harlem. Why are powerful individuals often able to “find” price-controlled goods much more often than the non-powerful? What does this tell us about the political side effects of price controls?
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If a scarce good cant be rationed through prices it will be rationed in some other w...View the full answer
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