Rent control is usually justified on the grounds that it protects moderate- to low-income families from the burden of rapidly rising rents and from eviction if they are unable to pay.It also prevents landlords from reaping windfalls as property values rise.Opponents note that rent controls usually lead to a reduced supply of rental housing and shortages.The proponents of rent controls support them primarily on the grounds of
A)efficiency.
B)equality.
C)externalities.
D)cost disease of services.

Question

Quizplus · Accepted Answer

Rent controls are usually motivated by the goal of promoting greater equality and fairness, by protecting low- to moderate-income renters from rapidly rising rents and the risk of eviction. While opponents argue that rent controls can lead to reduced supply and higher shortages, proponents focus on the social benefits of ensuring affordable housing for vulnerable groups. Thus, rent controls are primarily based on equity considerations rather than efficiency or externalities. The "cost disease of services" argument, which is related to the phenomenon of rising costs in labor-intensive sectors such as healthcare, education or housing, is not directly relevant to the justification for rent controls.

Rent Control Is Usually Justified on the Grounds That It