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Critically Analyze Rent Control Podcast.edited

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Economics
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Glendale Community College
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Critical analysis of rent control podcast
Rent control doesn’t work, this is the argument made by the Freakonomics podcast.
The podcast addresses the issue of rent control and seeks to communicate to listeners the reasons
why adopting a rent control policy does not work. The host invites opinions from various
economics and experts in the field to share their opinions as well as every other day citizens who
have experienced the impact of rent issues in cities. This paper aims to provide a summary,
analysis, and critical evaluation of the issue, incorporating concepts that have been learned in the
classroom.
Summary
In summary, the podcast looks at cities globally and shows that the population explosion
has increased the demand for housing. However, as a result of the law of demand and supply, the
rise in population has seen the rent for housing units continually increase. To curb this rising
trend, various cities have adopted the policy of rent control. Although this approach does
provide a brief reprieve to a segment of the population, it has more negative effects in the long
run. The host makes the argument that rent control is not a sufficient solution to the prevailing
challenge of the affordable housing shortage. The evidence provided includes arguments from an
economist who say that rent control destroys the city and its not a good way of resource

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allocation. This is because it creates scarcity, freezes the city, leads landlords to reduce their
investments and apply savvy strategies to avoid paying the tax rent. As such, the number of
available housing reduces and other needy individuals continue to suffer. Therefore to resolve
the problem, economists advocate for the deregulation of rent control and having market forces
of supply and demand work out the challenge and establish equilibrium (Freakonomics).
Analysis
An analysis of the podcast shows that one of the main points it makes is that the rising
popularity of cities has increased the demand for housing which in turn leads to an automatic
increase in prices. The law of demand and supply which asserts that a shortage in supply leads to
increased prices comes to play affecting the affordability of housing (Chappelow, 2019). As
such, it becomes hard for people living in cities to maintain their rents and keep living there
while on the other hand, it keeps new commoners from coming to the cities. While the situation
tends to be a bit hard for the prospective tenants, this form of pure competition ensures that it is
the demand and supply that set the prices.
However, to resolve the challenges posed by ever-increasing rent rates which rendered
some tenants unable to meet their rent obligation, various cities have proposed policies and
adopted laws that set a cap of the rent rate. This move has attracted diverse reactions from
individuals. On one hand, people who have benefits and see rent control as a good thing have
applauded this move. For example, Stanford economics professor, Rebecca diamond asserts that
on the positive side, these laws provide insurance for tenants that they will not be priced out of
their houses. In the short run, therefore, the law is beneficial albeit to a segment of the society.

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Surname 1 Student’s Name Professors Name Course Date Critical analysis of rent control podcast “Rent control doesn’t work,” this is the argument made by the Freakonomics podcast. The podcast addresses the issue of rent control and seeks to communicate to listeners the reasons why adopting a rent control policy does not work. The host invites opinions from various economics and experts in the field to share their opinions as well as every other day citizens who have experienced the impact of rent issues in cities. This paper aims to provide a summary, analysis, and critical evaluation of the issue, incorporating concepts that have been learned in the classroom. Summary In summary, the podcast looks at cities globally and shows that the population explosion has increased the demand for housing. However, as a result of the law of demand and supply, the rise in population has seen the rent for housing units continually increase. To curb this rising trend, various cities have adopted the policy of rent control. Although this approach does provide a brief reprieve to a segment of the population, it has more negative effects in the long run. The host makes the argument that rent control is not a sufficient solution to the prevailing challenge of the affordable housing shortage. The evidence provided includes arguments from an economist who say that rent control destroys the city and it’s not a good way of resource Surname 2 allocation. This is because it creates scarcity ...
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