• SpaceCowboy@lemmy.ca
    link
    fedilink
    arrow-up
    0
    ·
    1 year ago

    Are you an economist?

    Or did you just see a supply and demand curve and think that’s all there is to it?

    If you studied economics beyond the 101 level, you’d know the supply and demand curve is a theoretical concept that doesn’t actually exist in the real world because the requirements for it are impossible. Supply and demand most definitely exist, but it’s more of a fuzzy force kind of thing not clean lines on a graph. Realistically, it’s more like fuzzy splotches on the graph instead of clean lines.

    And there are multiple levels to it as well. Cities have to compete with other cities to attract businesses and businesses would prefer to be in a city where they don’t have to pay someone $100K per year to sweep the floors. Which might happen if that’s the pay level required to live in a city. You could get into a yo-yo situation where a city becomes unaffordable, people and businesses leave, causing the rent prices to drop, attracting people an businesses back, causing it to by unaffordable again, etc, etc. This instability comes at an economic cost that’s greater than the inefficiencies caused by rent control.

    You see an economy isn’t just one simple supply and demand curve. You might want to consider that economists might be aware of some factors you aren’t aware of.

    • gowan@reddthat.com
      link
      fedilink
      arrow-up
      0
      arrow-down
      1
      ·
      1 year ago

      No, I did not just see asupply curve nor did the dozens of economists polled. The fact is it has failed to make housing more available or decreased the cost of housing when implemented.

      Arguing for rent control is the economic equivalent if arguing against climate change. Pretty much everyone is in agreement on the issue.

    • PeepinGoodArgs@reddthat.com
      link
      fedilink
      arrow-up
      1
      arrow-down
      2
      ·
      1 year ago

      an economy isn’t just one simple supply and demand curve.

      Aggregate supply and aggregate demand.

      Boom. Roasted.

      This instability comes at an economic cost that’s greater than the inefficiencies caused by rent control.

      It’s extremely difficult to get someone who only understands Econ 101 to grasp the idea of competing economic inefficiencies. Conservative think tanks have been on a rather successful crusade to ensure that de-regulation is only good. So, it’s difficult to convince someone that higher taxes on “job creators” leads to a better, less expensive life for everybody else.