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After all this information one might be wondering that if these rent controls are inefficient why do politicians have success in passing these laws. One of the reasons brings us back to the fact that rent control hurts poor people more than it does middle class and we know that in controlled market apartments tend to fall into the hands of middle class professionals. The majority of people who vote are middle and upper class people, so when time comes to vote middle and upper class tend to oversee the problems of rent control and they don’t include these facts when choosing a politician to vote for even though that potentially future politician maybe promising to bring rent controls with when he or she is elected.

I have tried to come up with some solutions to replace rent controls and the ones I came up with are very simple. By placing rent controls we are not helping lower ladder of the society, we need to help them by letting theme participate in the market with the rest of the society. Government needs to find a way to subsidize the money that lower ladder is lacking in order to participate in the market with the rest of society. This way government will have higher spending only in the short run, in the long run I think that government will benefit more by subsidizing than implementing rent controls. Of course government doesn’t have to subsidize the whole amount, a good solution for that problem is for government to help low income families to find loans with low interest. Then government could pay for the interest while families could be paying off their loans without any pressure of high interest rates. One of my other solutions is very similar to the last one, low income families could be assisted in finding a house that they could purchase instead of the apartment. This way if government subsidizes the interest payments, people would have more incentive to work harder to pay off they payments because they will realize that in the long run the house will become their own private property unlike the apartment they are renting.

Some of these solutions might have problems of their own if applied in the real world, but I think that if any individual would be presented with all these facts they would change their minds very quick. I would have supported rent controls if I was presented with this problem in September because I would be thinking without applying economics to this problem. I would be very angry to see tax money that we pay go to subsidizing rent of low income families, but after learning more about this problem I realized that benefits in the long run would not only be great for the low income families and myself but also for the society as a whole.

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