Question

On the issues and arguments. For six of the following, write five carefully chosen sentences defending or responding to the claim.

1. Advocates of rent control also rely upon altruism to and paternalism to justify government intervention in setting the price of rent.

Answer 1

This argument is not justified on the grounds of altruism or paternalism. Landlords are willing to rent their dwelling for the market rate of rent and not at the rent resulted after the ceiling is imposed. It can be said that relative to the tenants, landlords are richer. But the loss to the landlord as a result of ceiling does not be matched by the a gain to the tenants, especially when the demand and supply of rental dwellings are elastic. Also at a lower rent, landlords may not maintain the quality of the dwelling resulting in poor accommodation despite rent ceiling.