Commentary
Recently, there have been discussions about the potential implementation of rent control by the Biden administration. This proposal suggests limiting rent increases for “corporate” landlords to 5 percent per year, although the specifics are still unclear.
While federal law currently does not authorize nationwide rent control, past attempts have faced constitutional challenges. Rent control, like other forms of price control, can lead to negative consequences such as shortages, deteriorating housing conditions, and a decrease in new housing construction.
It is essential to consider the broader economic context, especially in terms of inflation rates. Official inflation data may not accurately reflect the true cost increases experienced in various sectors, leading to discrepancies between reported figures and actual economic conditions.
Understanding the impact of inflation on everyday expenses, such as fast food prices or insurance premiums, highlights the need for a more comprehensive approach to measuring and addressing inflation. Failure to account for real inflation rates can result in financial challenges for individuals relying on fixed incomes or wages.
Ultimately, it is crucial to critically assess economic data and policies to ensure a more accurate understanding of the current financial landscape and its implications for individuals and households.
It has become increasingly difficult to conceal price increases in the Producer Price Index (PPI) compared to the CPI, thanks to the use of “hedonic adjustments.”
In my opinion, I would eliminate all data-gathering activities entirely. I believe that a government that focuses on its own affairs, with a stable and non-inflated currency, does not need to gather any data. However, for nearly a century, we have been immersed in the illusion of scientific economic planning, which necessitates data collection. That’s why it is done.
If data collection is inevitable, my only request is that it be done accurately.
Thankfully, we have not yet resorted to federal price controls during this period of inflation. This was not the case in the 1970s, when price controls on all fronts resulted in long lines for gas and shortages of essential items. This disastrous situation, which occurred under a Republican administration, was eventually rectified.
One would hope that humanity has learned from past mistakes and can make corrections when necessary. However, any mention of price controls today does not inspire hope or confidence. Let us avoid regressing. Inflation is a grave error caused by humans; we must not exacerbate it further.
Views expressed in this article are the author’s opinions and do not necessarily represent those of The Epoch Times.
