Posted tagged ‘Rent Controls Destroy Housing’

Must Reads For The Week 5/9/15

May 8, 2015
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

ECONOMIC LESSONS ABOUT PRICE FLOORS AND CEILINGS

NYC Mayor: Lets Bomb New York City With Rent Controls, at economicpolicyjournal.com. Rent control is a price ceiling. When the price of rent is not allowed to go above what the price would be under normal market conditions, an artificial shortage is created. Less is supplied at a lower price than a higher price, and more is demanded at the lower price than a higher price, creating a shortage of housing and a surplus of renters. It’s simple supply and demand.

Robert Reich: Economic Malpractice On The Minimum Wage, by Mark J. Perry, at carpediemblog. A minimum wage law is a price floor that a wage can’t go below. Watch the difference between the explanation about the minimum wage from Robert Reich, and the explanation by the Kahn Academy. Robert Reich is trying to fool people who are economically ignorant. When a wage is set at a rate higher than what that labor produces, the demand for that labor will decrease, creating unemployment. Less labor will be demanded at a higher rate than a lower rate, and more labor will be supplied at a higher rate than a lower rate, creating a surplus of labor or a job shortage.

Meet The Hotel Robot That Will Battle Minimum Wage Hikes, at economicpolicyjournal.com. When a wage is set higher than what the labor produces, the labor will go away. Automation is one way this will happen. Robert Reich forgot to mention this as well as some other salient points.

Free market prices coordinate supply of and demand for scarce goods and services. Government price controls, like minimum wage laws and rent control laws, are interventions that are factored into the economic law of supply and demand. Government force can’t do away with the economic reality of scarcity, it can only distort the coordination process.

MORE GOVERNMENT INTERVENTION

Ripple Labs Faces Fines From FinCEN, at payments.com. Ripple Labs is the first virtual currency exchanger to be fined by the Financial Crimes Enforcement Network. The Government wants to keep its monopoly on money creation via the Federal Reserve, by making virtual currency providers comply with anti-money laundering laws. This is curious because the US Treasury and the Federal Reserve are running the biggest money laundering operation in the history of the world.

Obamacare Killer? Global Spending On Cancer Drugs Surges To $100 Billion, at economicpolicyjournal.com. Obamacare has taken over decision-making from what was left of a free market system in the healthcare system. Coordination of supply and demand through prices barely exists. Lobbying Government for protection and favors through Government decision-making is no way to run an industry, just ask the former USSR.

The Mysterious Source Of Surging Demand For GM Cars, Revealed, at zerohedge.com. The first trick to increase sales was channel stuffing. The second was subprime car loans. Now the Government has increased its purchases from Government Motors. Maybe it does pay to get into bed with the Government! They bailed GM out. They subsidised purchases of the Chevy Volt. Now they are buying cars, (for whom, I don’t know).

Government Using Subprime Mortgages To Pump Housing Recovery, Tax Payer Will Pay Again, at zerohedge.com. This didn’t end well last time, did it?

MISCELLANEOUS

Meet Three Kids Alive Today Thanks To 3D Printing, by Ashley Welch, at cbsnews.com. We are only scratching the surface of what can be done with 3D printing.

Creative Destruction: Newspaper Ad Revenue Continues Free Fall, by Mark J. Perry, at carpediemblog. The market (decisions by individuals), picks the most productive goods and services. I predict the print media will, at some point, ask for a Government bailout.

CNN Anchor, Chris Cuomo, Ignorant About The Constitution And Hate Speech, by Robby Soave, at reason.com. And Chris Cuomo has a law degree from Fordham University? He must have missed the class when they talked about the first amendment!

Hello Al Gore: Low Sun Spot Cycle Could Mean Another ‘Little Ice Age’, by Chriss Street, at americanthinker.com. Who would have ever thought that the sun is the most important factor when it comes to the earths temperature.

CARTOONS THAT MAKE YOU THINK

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Must Reads For The Week 4/4/15

April 4, 2015
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Electric Cars Are Doing More Harm Than Good, at zerohedge.com. Electric cars charged by electricity produced from coal, generate more CO2 emissions over their lifetime than gas-powered cars.

Does California Need Rain, Rationing, Or Prices, by Daniel Bier, at fee.org. Water is a scarce resource and has to be rationed in one of two ways. 1) By prices in a free market system. 2) By bureaucrats in a centrally planned system. Price controls and subsidies lead to water being used in activities that wouldn’t be cost-effective if market prices prevailed. Agriculture accounts for 80% of water usage but only 2% of economic activity. Market prices would get rid of inefficient agricultural activities, as well as curb industrial and residential usage. There is no chance that prices will be allowed to work their magic in California.

Stop Policing For Profit In New Mexico, at santafenewmexican.com. A house bill would get rid of civil asset forfeiture in New Mexico. The fifth amendment is back in vogue. Lets hope other states will follow New Mexico’s lead.

Cop Federally Charged For Paralyzing Indian Grandfather Visiting America, by Cassius Mythel, at theantimedia.org. Click on the article and watch the video of this incident. Excessive force? You decide.

Methods Police Use On Mentally Ill Are Madness, by Conor Friedersdorf, at theatlantic.com. Watch the first three minutes of the video. A mother called police and said her son was off his meds, and needed help to get him to the hospital. She probably wishes she would have called an ambulance instead of the cops, because her son would still be alive today. The cops immediately escalate the situation and the rest is history. Read the whole article it has some excellent points.

Kshama Sawant’s Next Planned Attempt To Destroy Free Markets, at economicpolicyjournal.com. The Seattle council woman who lead the passage of a job and business killing 15 dollar minimum wage law, now has her sights set on destroying the housing market by pushing rent controls. This central planner is hurting the very people she is claiming to help. Is she ignorant about the results of her policies, or is she doing this on purpose? It doesn’t matter, the result is the same either way.

Parents Must Sign Permission Slip Before Kids Can Eat Oreos, by Lenore Skenazy, at reason.com. This is on the permission slip, “the ingredients of the oreo is on the back of this sheet and on my e-board....”. We are going to raise a generation who are not curious, will never take a risk, and are easily manipulated.

North Dakota Vote Puts The U.S. One Step Closer To A Convention Of States, by Pete Kasperowicz, at theblaze.com. Cutting back big government is going to happen from the bottom up.

Cal State U. Deactivates Christian Group…For Seeking Christian Leaders, at tammybruce.com. When you try to micromanage every decision with excessive rules, there is no sphere of freedom left for individuals to make decisions. The result is this illogical, or insane, decision by some bureaucrat at Cal State U. Or is it anti Christian bias.

Local Indiana Station Ambushes Memories Pizza To Gin Up A Religious Freedom Restoration Act Story, by Tom Blumer, at newsbusters.org. Why would anyone think people in the media don’t have an agenda? Journalists got it wrong about hands up don’t shoot in Ferguson, the gang rape at University of Virginia, the Duke lacrosse rape case, Harry Reid Lying about Romney not paying taxes, the RFRA story in Indiana. Hard core progressive’s on the left and right, will lie, cheat, break laws, and destroy individuals in order to advance government power, and journalists play the role of the get away driver.

How To Win An Election? It’s About The Ice Cream, Not The Cow, by Steve Straub, at thefederalistpapers.org. Politicians understand that man is a self interested being.