Landlords and groceries can just raise prices to bring the cost of living up
Sigh. People make this braindead argument every single time this subject comes up. No they can’t. Markets do not work that way. It’s literally just a repackaged argument against minimum wage and it has been thoroughly debunked in that context.
Unless you live in a city with rent stabilization, yes landlords will do that. Groceries will likely not have that problem, because of other market conditions. The first to increase their rents will be luxury apartments. Once the Internet is done laughing their asses off about $5000 rent, other landlords will use realpage to gauge the market and increase in tandem. Landlords literally do not care if their property is occupied, because the money is in the land and we’ve commoditized housing.
It becomes more and more meaningless when you start to talk about any form of regulation or extension of basic rights. Plenty of countries are coming around to the idea that housing is a basic right. It’s hard to raise prices when your competition is literally free. UBI + market regulations + basic human rights are all required. No solution exists in a vacuum and anyone who considers it as such is missing the point
Have you seen how housing prices rose when interest rates were low? Markets work that way because consumers outcompete each other, at least in the housing market. You need a surplus of supply, like the corn market, to keep costs low.
Like @espi wrote, you need fierce competition in all markets.
So you want to tell me that companies aren’t buying out competition and with a monopoly they then rise prises as they want?
Explain to me how markets work if the only company selling or renting houses is not lowering their price when demand lowers? Or when they intentionally are not renting flats in order to keep demand high?
Sigh. People make this braindead argument every single time this subject comes up. No they can’t. Markets do not work that way. It’s literally just a repackaged argument against minimum wage and it has been thoroughly debunked in that context.
Unless you live in a city with rent stabilization, yes landlords will do that. Groceries will likely not have that problem, because of other market conditions. The first to increase their rents will be luxury apartments. Once the Internet is done laughing their asses off about $5000 rent, other landlords will use realpage to gauge the market and increase in tandem. Landlords literally do not care if their property is occupied, because the money is in the land and we’ve commoditized housing.
It becomes more and more meaningless when you start to talk about any form of regulation or extension of basic rights. Plenty of countries are coming around to the idea that housing is a basic right. It’s hard to raise prices when your competition is literally free. UBI + market regulations + basic human rights are all required. No solution exists in a vacuum and anyone who considers it as such is missing the point
Have you seen how housing prices rose when interest rates were low? Markets work that way because consumers outcompete each other, at least in the housing market. You need a surplus of supply, like the corn market, to keep costs low.
Like @espi wrote, you need fierce competition in all markets.
So you want to tell me that companies aren’t buying out competition and with a monopoly they then rise prises as they want?
Explain to me how markets work if the only company selling or renting houses is not lowering their price when demand lowers? Or when they intentionally are not renting flats in order to keep demand high?