Biden Proposes National Rent Control, Sparking Debate Among Economists
President Joe Biden has unveiled a controversial proposal for a form of national rent control, aiming to address rising housing costs but facing skepticism from economists and political hurdles.
At a glance:
- Biden’s plan would cap rent increases at 5% annually for large landlords
- Proposal targets approximately 20 million apartment units nationwide
- Economists largely critical, warning of potential negative long-term effects
- Plan unlikely to pass current Congress, may serve as campaign talking point
President Joe Biden has introduced a bold proposal for a form of national rent control, targeting rising housing costs that have frustrated many Americans. The plan, which would affect some 20 million apartment units across the country, represents a significant federal intervention in the housing market.
Proposal Details and Political Landscape
Under Biden’s proposal, large landlords would face a choice: either cap annual rent increases at 5% or forfeit valuable federal tax breaks. The plan aims to address voter concerns about housing affordability, which has impacted Biden’s popularity.
However, the proposal faces significant obstacles in Congress. With the GOP controlling the House and a closely divided Senate, passing such legislation appears unlikely, especially as lawmakers focus on the upcoming November election.
Economic Criticism and Debate
The plan has drawn criticism from many mainstream economists, who argue that rent control policies often backfire by discouraging new construction and ultimately making housing less affordable. Jason Furman, a Harvard professor and former Obama administration official, described rent control as “about as disgraced as any economic policy in the tool kit.”
Some experts suggest Biden’s proposal mirrors Donald Trump’s approach of pitching catchy, populist policies that may poll well but face skepticism from policy wonks. However, unlike Trump’s proposals, Biden’s rent control plan appears less likely to be implemented due to congressional obstacles.
Mixed Reactions and Alternative Approaches
Housing advocates have expressed mixed reactions to the proposal. While some praise Biden for addressing the issue, others argue for more aggressive measures, such as limiting rent increases on properties with mortgages backed by Fannie Mae and Freddie Mac.
The administration has also announced plans to make federal land available for affordable housing construction and use surplus federal properties to shelter the homeless. These initiatives may prove more practical in addressing housing supply issues, experts say.
Remember this when young, stupid communists try to tell you capitalism doesn’t work. We don’t have capitalism when the friggin’ government keeps nosing into housing, farming, banking, energy, automotive, transportation, education, etc, etc. When politicians interfere to reward their friends or buy votes, bad things will inevitably happen.
Pandering. Definitely not his idea.
Another marxist disaster waiting to happen if this garbage were to pass. New housing would disappear overnight and the rent would go up continually and no repairs would happen. This jerk has sold what was left of his soul for power and its slipping away like grains of sands daily.. MAGA !!!!