Mamdani's and by extension, his voters', ignorance about the effects of price controls in markets will be an interesting real-time political experiment. When the inevitable unintended outcomes become to emerge who will be blamed? https://rentguidelinesboard.cityofnewyork.us/resources/apart... https://www.zohranfornyc.com/platform Quoting Paul Krugman (Nobel prize winner and liberal columnist at the NYT). "The analysi…
All variants of rent control etc. have been tried in Europe and have miserably failed. Quite the opposite, rents have been rising even more, and new construction has been reduced due to new politically induced risks.
Examples: Berlin, Barcelona
But as Barcelona shows, there is a feedback loop benefiting leftist populist politicians:
Higher rents, lower housing supply -> people frustrated -> leftist populists get more votes -> more stupid regulation -> even higher rents, even lower housing supply -> people more frustrated -> ...
This can go on for at least two electoral cycles.