Tuesday, October 19, 2010

Join "The Rent is Too Damn High" Party in NY

Is it any wonder the election time is called the silly season? The clip below is from a New York gubernatorial candidates debate, the speaker is candidate Jimmy McMillan:



New York City is infamous for its rent control laws. How is that working for them?

Rent control is a disincentive for the building of (or conversion to )residential rental units. Fewer residential units means higher rents -- at the point the rents can be raised. The system as I understand it results in tenants trying to manipulate the system to keep the rents under control and the landlords trying to manipulate the same system to bring the rents to a market rate (which is artificially high due to ... the depressive effects of rent control systems on creating new units). I doubt that the "Rent is Too Damn High" party understands the economics underlying the problem, though. At least Mr. McMillan does not articulate that understanding.

Here is the Rent is Too Damn High Party website.

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