Why I'm Voting for Javier Milei

[crazed_hoosier2]

There may be no more thoroughly discredited interventionist economic policy than rent control. It's a classic case of something that sounds good to most people when a politician proposes it, but pretty much invariably leads to bad outcomes. Really, this goes for most things that sound good to most people. But, despite learning this over and over again, we still often end up with policies that sound good rather than policies that are good.

As hyperinflation was ravaging Argentina, lawmakers sought ways to "do something" -- because Argentinians were, naturally, insisting that they do. And one of their answers was a 2020 measure simply known as the Rental Law. It was one of the top targets on Javier Milei's list of bad policies to undo.

Well, the policy change is starting to bear fruit.

Argentina's recent repeal of rent control by libertarian President Javier Milei has led to a surge in housing supply, with the freedom to negotiate contracts, previously restricted, directly causing a drop in rental prices.

For many locals, finding a new apartment had become "mission impossible." But after the repeal, Buenos Aires saw a doubling of available rental units, and rental prices have stabilized. Under the new rules, landlords and tenants have more freedom to agree on lease terms.

Since Milei's repeal of rent control laws took effect on December 29, the supply of rental housing in Buenos Aires has jumped by 195.23%...

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Shockingly, the actual outcomes of the rent control policy didn't match up with its advertised intent.

The (rent control) law aimed to provide tenants with more financial security, but by the end of last year, an estimated one in seven homes in Buenos Aires was sitting empty as landlords chose not to rent them out in Argentine pesos. Deposits were capped, and it was nearly impossible to end tenancies early.

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Somebody could probably write a book consisting of nothing but sentences that began with "The law aimed to (do something desirable) , but what really happened was (something undesirable)."

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You'd think that everybody would welcome the surge in housing supply, even if begrudgingly. But you'd be wrong.

Not everyone in Argentina supports Milei's measure. Critics argue that the repeal disproportionately benefits landlords at the expense of tenants, many of whom are already struggling with the country's economic crisis. Some worry that the increased housing supply could be temporary, leading to a surge in prices once the market stabilizes.

Of course that's their objection -- as if tenants are being "benefitted" by having no places to rent. The entire world can learn from what he is doing in Argentina. We're (unbelievably) still instituting rent controls here - or at least proposing them.

President Joe Biden has proposed federal rent control measures, saying they're needed to protect tenants from corporate landlords. He proposed limiting rent hikes to 5% a year for the next two years for landlords with more than 50 units.

Vice President Kamala Harris has also recently indicated support for rent controls, saying at her first major rally since becoming the nominee that she wanted to "take on corporate landlords and cap unfair rent increases." In 2019, after Oregon passed a statewide rent control measure, she praised the bill on Twitter.

Milei 2024!!!