Drudge Retort: The Other Side of the News

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Tuesday, January 06, 2015

Forty years after first taking the oath as governor of California, Democrat Jerry Brown was sworn in to an historic fourth term Monday, proposing sweeping changes to address global climate change while offering a measured approach to targeting the state's long-term financial liabilities. Brown has in the past used the speeches to make promises. In his third inauguration address in 2011, at age 72, he pledged not to raise taxes without a vote of the people, and to "speak the truth" about the state's financial condition, which at the time was a $27 billion deficit. Four years later, California is anticipating multi-billion dollar surpluses after voters approved Brown's sales and income tax increases. "While we have not reached the Promised Land, we have much to be proud of," he said.


It is widely acknowledged that rent control harms more people than it helps.

Well except for the people who it protects.

Actually, rents go up by the percentage of the inflation rate that's due to housing. The ability to recoup maintenance costs are not "tightly curtailed." But more important, this notion that landlords "get further behind" because they can't raise the rent assumes that most landlords -- and their bankers -- are idiots.

If I buy a rental property, the rent that's coming in TODAY is matched with the price I'm paying TODAY. If the rents are too low to cover the cost, I have no business buying the place. And the bank has no business loaning me the money.


As for ceiling on rents reduces the quantity and quality of housing available.

All new construction, since 1979, is exempt from rent control in San Francisco.

Rent control is, I will admit, bad for people who see housing as a speculative commodity, to be traded with little regard for its function as a basic human right. But I see housing more as a regulated utility -- private owners have the right to a regular, acceptable return on investment, but not to excessive profits. Tenants have the right to live in the same place their entire lives, as long as they pay the (stable) rent and don't become a nuisance.

These are good things for a city. The only problem with San Francisco rent control is that it isn't strong enough.


Also just a note. It is required that you attribute your sources when you cut and paste from someone else.

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