Thomas Sowell: Affordable Housing
To learn more about Thomas Sowell visit: https://www.Liberty-Media.co.uk
SUMMARY:
In this video Thomas Sowell explains how very often well meaning government policies designed to alleviate poverty and improve routes to home ownership for people on lower incomes often do just the opposite.
Sowell argues that affordable housing does not require government spending or regulation. Discussing the impact of rent controls in New York and San Francisco he notes that these are the cities with the highest average rents in the US despite many polices to provide affordable housing.
He explains this phenomena by highlighting the fact that such policies disincentivise the construction and maintenance of such affordable housing. As with any form of price controls introduced by government there is a reduction in quality and the incentive for individuals to limit their consumption of scare resources in this case affordable housing.
As a result there is more demand for the affordable homes which already exist but more scarce resources being diverted into the construction of luxury homes because these are usually excluded from any price cap.
SOCIAL MEDIA:
Pinterest = https://www.pinterest.co.uk/LibertyMe...
TAGS:
#MiltonFriedman #CoreEconomicInsights