Posted by
Mick O. on Monday, March 31, 2008 9:09:45 PM
When the press reports about some bill that is going through congress, all the story focuses on is the intent of the legislation, not the results it will likely cause. Investigative reporting is dead except on the internet, which could be why news outlets are finding their readers bailing by the thousands.
Take the rent control laws, for example. Thomas Sowell points out in his book why this never helps the people it intends to help. Why is this never pointed out. All that is reported is how the landlords are taking advantage of the poor renters and something must be done! Nobody ever asks what will happen if such laws are passed. Let's take San Francisco, for example.
"Keep the rents low," they cried. So the renters formed the Rent Board and lobbied the city for strict laws that did not allow for rent increases... reasonable rent increases! Landlords were limited to a certain small percentage of increase every year and are therefore disuaded from getting into the rental business. So what was the result?
"Landlords are kicking people out of their homes," they cried because landlords were going around rent control by cancelling the rental agreements and re-renting the units for more money. With increased expenses of holding the property, landlords needed to get more money to keep up. However, in response, the city placed strict restrictions on getting tenants out. They also set up certain classes of citizens as protected making in virtually impossible to get them out. Right now, tenants have the upper hand, and it is considered a good deal if a landlord can get them out by paying them off with several thousand dollars! So what was the result?
Thousands of units are sitting off the market unrented in order to avoid these problems. And is this the "good intentions" that were originally addressed in the legislation? NO!
This is just one example. More to come later.