Rent control, like all other government-mandated（强制执行的）PRICE CONTROL,is a law placing a maximum price, or a "rent ceiling," on what landlords may charge tenants（房客）.It is a program designed to stop rents from rising rapidly and is used mainly in large urban areas where there are more people than housing. In cities with rent control, the city government sets the maximum rent that a landlord can charge for an apartment. Supporters of rent control argue that it protects people who are living in the apartments. Their rent cannot increase; therefore, they are not in danger of losing their homes. However, almost all the critics conclude that rent control is destructive. They say after a long time, rent control may have negative effects.
In a 1990 survey of 464 people published in the May 1992 issue of the American Economic Review,93% of US respondents agreed that a ceiling on rents reduces the quantity and quality of apartments available. Landlords are too cautious (perhaps too smart) to put their faith in rental apartments because they know that the rental-controlled apartments cannot increase their profits. Therefore, they invest in other businesses where they can increase their profits. They do not invest in new buildings which would also be rent-controlled. As a result, new apartments are not built. Many people who need apartments cannot find any.
Some theorists argue that the minimum wage law can cause problems in the same way. The federal government sets the minimum that an employer must pay workers. The minimum helps people who generally look for unskilled, low-paying jobs. However, if the minimum is high, employers may hire fewer workers. They will replace workers with machinery. The price, which is the wage that employers must pay, increases. Therefore, other things being equal, the number of workers that employers want decreases. Thus, critics claim, an increase in the minimum wage may cause unemployment. Some poor people may find themselves without jobs instead of with jobs at the minimum wage.
Supporters of the minimum wage say that it helps people keep their dignity, Because of the law, workers cannot sell their services for less than the minimum. Furthermore, employers cannot force workers to accept jobs at unfair wages.But the supporters make a big error. They fail to realize that it is possible for such a law to increase wages beyond the value of what the workers contributes.
Economic theories predict the results of economic decisions such as decisions about farm production, rent control, and the minimum wage. The predictions may be correct only if "other things are equal". Economists do not agree on some of the predictions. They also do not agree on the value of different decisions. Some economists support a particular decision while others criticize it. Economists do agree, however, that there are no simple answers to economic questions.
