BERLIN (Reuters) -The German government on Wednesday proposed a law to extend rent controls in an effort to make housing more affordable, following through on a key pledge of the new coalition government under Chancellor Friedrich Merz.
The measure, which extends the price controls by another four years through 2029, is fiercely opposed by property industry executives.
The eurozone interest rate cut to 2.5%. the purpose to stimulate economic growth, ours is nearly double, 4.5%, and its a conservative led administration.
Some ideas for you Sir Keir.
You certainly need them.
😎
A number of
neo-classical and
Keynesian economists say that some forms of rent control regulations create
shortages and exacerbate scarcity in the housing market by discouraging private investment in the rental market. In addition, there would be a dead weight loss and inefficiency since some of the loss due to price ceilings is never gained again.
In 1971, the Swedish economist
Assar Lindbeck, a housing expert, said that "rent control appears to be the most efficient technique presently known to destroy a city – except for bombing"
In a 1992
stratified, random survey of 464 US economists, economics
graduate students, and members of the
American Economic Association, 93% "generally agreed" or "agreed with
provisos" that "A ceiling on rents reduces the quantity and quality of housing available."
Classic case of ideological nonsense over reality, rent control never works unless in somewhere like North Korea whete there is no private owndership of basic housing.
Interest rates are basically a political decision , the BoE gets it wrong all the time.
German economy on a steady decline , the UK will follow under this economically inept government