I'm re-reading Thomas Sowell's classic - Basic Economics. I read this 15 years ago in my 20's - but was not really ready to receive it's insight.

Interesting fact. During WW2 - America experienced a major housing shortage.

EVEN THOUGH the population had increased by about 10%, and housing supply had also increased by roughly the same 10%, people still had to wait months for an available apartment. Prices of single-family dwellings also spiraled upwards... WHY???

Turns out that during World War II, many cities proactively enacted rent controls. The idea, presumably, was to help women (whose husband’s were serving) keep their homes and apartments.

Noble... yes!

Unintended consequences... absolutely!

Turns out, when you keep the cost of a given supply ARTIFICIALLY “low”, people use MORE of it.

The number of occupants, living in a per square footage basis of housing, plummeted sharply throughout America. Larger and larger houses were built, more and more apartments were built. However, the number of occupants living in available properties, per square footage, dropped.

When the government was artificially keeping prices low, there was no need for extended families to double up in houses to help pay the rent. There was no reason for people to minimize living quarters while maximizing efficiency. If the government is going to keep prices of a product (AKA housing) low, why not use more of it (AKA more space per resident)?

Since World War II, throughout big cities across America, poorly designed housing initiatives have continued to create the exact OPPOSITE outcomes of what these type of housing policies intended.

So, counterintuitively, if you wanna see why certain geographical areas have such high rents and a housing shortage... look no further than poorly designed rent “controls.” (And other government regulations that constantly backfire)

... and, speaking of unintended consequence... here is what happens when "noble" policies & talking points of uninformed politicians meet fiscal reality.

Politicians are NEVER going to miss a chance to virtue signal and try to get votes - regardless of it hurts the people they claim to work for.

https://abc7.com/business/grocery-stores-closing-in-long-beach-over-hero-pay/10223967/?fbclid=IwAR0BWxVHYpFyM1RmyggBPJUv_jVvZ_Fw-1dYYNpehKyBjfwTI9qGVUdQ3ho