Economy
Opinion: Kamrade Harris Wants to Crush US Housing Market
By AAF | Aug 29, 2024
The recent proposal by Vice President Kamala Harris to grant federal agencies and state attorneys general new powers to impose fees on food providers and grocers accused of “price gouging” is yet another misguided attempt at government intervention in the free market. This follows her endorsement of rent control earlier this summer, a policy that has long been criticized for its negative effects on the housing market and the broader economy.
These policies are not just bad economics; they represent a dangerous step toward a centrally planned economy, historically the hallmark of communist regimes.
Rent control, like price controls on food, is a socialist scheme that historically produced disastrous results. Artificially capping rents will distort the housing market, discouraging investment in new housing and leading to shortages of available rental properties. The inevitable outcome is a decrease in the quality and quantity of housing, with the most vulnerable populations suffering the most.
This is not a theoretical prediction—it is a reality observed in cities across the world, from New York to Berlin, where rent control has led to a decrease in available housing and a deterioration in living conditions.
Rent control is a fundamentally flawed approach because it ignores the basic principles of supply and demand. When prices are capped, the incentive to produce more of a good or service is reduced, leading to shortages. In the case of housing, this means fewer new apartments and houses are built, exacerbating the problem the policy was meant to solve. This is a textbook example of what happens when governments try to manage economies through coercion rather than allowing the market to function freely. The Socialist Democrat model Harris is proposing is economically damaging—and fundamentally at odds with the principles of a free society.
The solution to rising food prices, housing shortages, and other economic challenges is not more government intervention but less. Instead of imposing price controls, the government should focus on creating an environment where the free market can thrive.
This means cutting taxes, reducing regulations, and getting out of the way so that businesses and individuals can innovate and compete. By lowering the cost of doing business, the government can encourage more investment, leading to greater supply and lower prices naturally, without the need for coercive measures.
Tax cuts and deregulation are powerful tools for stimulating economic growth. When businesses can operate without excessive government interference, they can produce goods and services more efficiently, leading to lower prices and better quality. This benefits consumers, creates jobs, and raises living standards across the board.
In contrast, government-imposed price controls and rent control are nothing more than a step towards central planning, a system that has been discredited by decades of failure in countries worldwide. If Vice President Harris is truly concerned about helping Americans struggling with high prices, she should advocate for policies that empower the market rather than shackling it with more regulations and controls.
By embracing the principles of limited government and free enterprise, we can ensure a more prosperous future for all Americans.
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