Earlier quoted context omitted.
http://www.econlib.org/library/Enc/RentControl.html >Economists are virtually unanimous in concluding that rent controls are destructive. In a 1990 poll of 464 economists published in the May 1992 issue of the American Economic Review, 93 percent of U.S. respondents agreed, either completely or with provisos, that “a ceiling on rents reduces the quantity and quality of housing available.”
Ok, so economists agree that "a ceiling on rents reduces the quantity and quality of housing available". Thankfully, economists don't run our country. How does this support the statement "Rent control is fundamentally a tool for getting political benefits at the expense of economic ones."? Quantity and quality of housing are arguably much less important than ensuring there is a viable working class—just see how terri…
That's the distinction that drove me to make the political versus economic benefits distinction. Rent control as a whole makes things worse - there's less housing, it's of worse quality, and it drives up the cost of market rate housing. On the whole, it's a bad allocation of resources: we'd much rather have cities with more housing that's of higher quality (because people are more than willing to pay for it). The problem is that this sort of policy creates winners and losers, and the losers are often the ones who get to set local policy.
There's two solutions - have a ban on rent control at a higher jurisdictional level (Washington State does this), or bribe current residents to lift rent control. The latter should make everyone better off - we pay for keeping the working class viable with the overall economic gains made by lifting rent controls.
Anyhow, my overall point is that we should hand out the who-benefits stuff without making society worse off as a whole, simply because the locals who happen to live in an area are able to hold overall policy hostage.