The first proposition in the table is about rent control, a policy that sets a legal maximum on the amount landlords can charge tor their apartments. Almost all economists believe that rent control adversely affects the availability ami quality of housing and is a costly way of helping the neediest members of society. Nonetheless, many city governments ignore the advice of economists and place ceilings on the rents that landlords may charge their tenants.
The second proposition in the table concerns tariffs and import quotas, two policies that restrict trade among nations. For reasons we discus* more fully later in this text, almost all economists oppose such barriers to free trade- Nonetheless, over the years, presidents and Congress have chosen to restrict the import of certain goods.
Why do policies such as rent control and trade harriers persist if the experts are united in their opposition? It may be that the realities of the political process stand as immovable obstacles. But it also may be that economists have not yet convinced enough of the public that these policies art- undesirable. One purpose of this book is to help you understand the economist's view of these and other subjects and, perhaps, to persuade you that it b the right one.
QUICK QUIZ Why -night economic advisers to the pres'dent disagree about a question of policy?
Was this article helpful?