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In Europe after the second world war several cities approved price ceilings on rental accommodation - Essay Example

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Price ceiling is fixed by law, which restricts the pricing system for ensuring reasonable and fair business practices. Price ceiling are…
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In Europe after the second world war several cities approved price ceilings on rental accommodation
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In Europe after the second world war several cities approved price ceilings on rental accommodation

Download file to see previous pages... The protest of people for controlling price is understandable. Even though price control is understandable but still the government may be able to protect only some of the consumers while imposing negative impact of price control on others. However the aim of the government is to protect the group that usually gets pressed hard because of inflation. Thus charging high interest on different loans is to protect people who are forced to borrow out of desperation. Similarly the maximum price of eatables, such as bread, is to protect poor ones who completely depend on it for their survival and the rent control is for protecting the landlords at times when the demand for the apartments exceed the supply (McEachern, 2012).
The New York State legislators are seen defending the Protection Act of War Emergency Tenant in order to cater the housing shortage related to war. The war that has been addressed in this law is not the Vietnam War or the war of Iraq but it is the World War II, which is considered to be the starting of rent control issues in America. Although war has not much to do with the shortage of apartments, as the shortage are more likely to occur due to rent control; which is considered to be the supposed solution for making accommodation readily available. Gotham is the only city of America which embraces rent control; however many other cities have surrendered to the blarney of this legislative fix (Christ, 2009).
Like all the other mandated price control of the government, rent control is also considered to be a law related to the fixation of maximum price or “rent ceiling”, which explains that what exactly the landlords must charge from the tenants. In order to make the rent ceiling work, the rent must be placed below the rate that would be prevailed otherwise. For example, an enactment prohibiting landlords from exceeding the apartment rent from $100,000 per month would have not been ...Download file to see next pagesRead More
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