Rent Control and Political Mechanisms by James M. Buchanan

„Politically, sometimes you get situations where rent control will go through. It is especially true in an emergency, where there is a sudden, sharp increase in demand for housing or a cut back in supply. People will simply not allow the marketplace to allocate housing resources and so you get pressures for rent control. Once you have it, it is hard to eliminate.“

James M. BuchananJames M. Buchanan explains the political pressures behind rent control and the difficulty of its removal in crises.
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James M. Buchanan was an American economist and Nobel laureate, known for his work on public choice theory.

James M. Buchanan explains the political mechanisms and challenges involved in implementing and removing rent control, especially in crisis situations.


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James M. Buchanan quote image about rent control and political mechanisms

James M. Buchanan (1919–2013) was an American economist best known for developing public choice theory, analyzing political behavior using economic principles. He was awarded the Nobel Prize in Economic Sciences in 1986.

James M. Buchanan quote about rent control, housing policy, and economic consequencesCopyright © yoice.net – Quote Artwork
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"Rent control is one policy that economists universally would oppose. It is a grossly inefficient way of allocating housing space and, of course, it inhibits construction and creates the very thing it is supposed to alleviate. It is one of those things where people simply don't understand simple economics and, therefore, put in for political reasons what will damage the very people that it is designed to help. Minimum wage levels are another classic example." James M. Buchanan
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James M. Buchanan quote about artificial scarcity and wasted resourcesCopyright © yoice.net – Quote Artwork
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"If you create an artificial scarcity through public policy, artificial rent so to speak - setting up a new import quota or giving out a particular office that is very beneficial - people are going to invest money, time and resources in trying to secure that opportunity. If the value is created independently of the search for it, the search for it is wasted." James M. Buchanan
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Murray Rothbard quote about price controls and health careCopyright © yoice.net – Quote Artwork
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"[Professional politicians] don't mind if price controls cause shortages of health care. In fact, they welcome the prospect, because then they can impose rationing; they can impose priorities, and tell everyone how much of what kind of medical care they can have. And besides, ... there's that deeply satisfying rush of power." Murray Rothbard
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James M. Buchanan quote about interest groups, market solutions, voluntary exchanges, and economic libertyCopyright © yoice.net – Quote Artwork
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"Building on the public's unwillingness to act on principle in support of market solutions to apparent problems, whether real or imagined, these interest groups secure arbitrary restrictions on voluntary exchanges and, in the process, secure rents for their members while reducing both the liberties and economic well being of other members of the economic nexus, both domestically and internationally." James M. Buchanan
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Milton Friedman quote about ownership and maintaining buildingsCopyright © yoice.net – Quote Artwork
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"When everybody owns something, nobody owns it, and nobody has a direct interest in maintaining or improving its condition. That is why buildings in the Soviet Union - like public housing in the United States - look decrepit within a year or two of their construction." Milton Friedman
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