capitalist lapdog

Capitalist lapdog calls rent control 'theft'

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4 Responses to capitalist lapdog

  1. I thought it was rent that was theft.

  2. FSK says:

    Rent control is theft because the property owners is prevented from charging the fair free market rent for his property. *HOWEVER*, the rent control is already factored into the property price when the landlord bought the property. Repealing rent control would be a windfall profit for the property owner.

    The primary victim of rent control is people who are trying to rent an apartment. They are forced to pay higher prices, due to the supply of apartments tied up in rent control.

    In a *FREE* market, rent is not theft. In the present, landlords receive a massive Federal Reserve interest rate subsidy. Suppose a landlord puts up $1M to buy an apartment building worth $10M, borrowing $9M from a bank. The interest rate on the loan will typically be around 6%, while inflation really is 15%-30%. The landlord’s ownership claim to the property is not legitimate, because his property purchase was subsidized by the State.

    For a rent-controlled apartment, *NEITHER* the landlord nor the tenant have a legitimate ownership claim. The landlord’s ownership claim isn’t valid, because he received a State subsidy to fund his purchase. The tenant’s ownership claim isn’t valid, because he’s paying less than the fair free market rent. If I were the judge in a free market court, I would rule that a former rent-controlled apartment is *UNOWNED*!

  3. FSK, an excellent comment.

  4. scineram says:

    No. It was stupid.

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