Free Weekly Email 8.20,24
Javier Milei Got Rid of Rent Control in Argentina. Housing Supply Skyrocketed
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.
Milei, a self-described "anarcho-capitalist" known for his free-market approach, repealed the 2020 Rental Law, enacted by former leftist President Alberto Fernández, which had imposed restrictions on landlords and led to a significant decline in rental availability.
The results were predictable if you understand basic economics.
Since Millei's repeal of rent control laws took effect on December 29, the supply of rental housing in Buenos Aires has jumped by 195.23%, according to the Statistical Observatory of the Real Estate Market of the Real Estate College (CI).
Kamala Harris wants to implement rent and price controls
On Friday, Vice President Kamala Harris unveiled a new proposal to grant federal agencies and state attorneys general new powers to impose fees on food providers and grocers deemed to be engaged in “price gouging.” While this is being reported as the Harris campaign’s first policy proposal, one that’s facing criticism from across the political spectrum, it’s not even the first time this summer that Vice President Harris has come out in favor of federally-imposed price controls.
As tens of thousands of people descend on Chicago this week for the Democratic National Convention, the Harris campaign’s messaging continues to cloak price controls, rent control, and other interventionist policies in pro-growth but contradictory rhetoric. The Harris campaign, for example, has made “a fight for our freedoms” the theme for the third night of the DNC. Yet it will be difficult for Kamala Harris to sell her agenda as a freedom-oriented if voters learn about the ways in which Harris’ policy proposals would result in less freedom.
It is interesting to note how the new President in Argentina has scrapped rent controls, and more apartments with lower rent come onto the market. Yet, the Democratic nominee is endorsing what has never worked anywhere before.
I mentioned Henry Hazlitt’s great book, “Economics in One Lesson,” in the weekly is advocating for them. People might wonder why, if these policies don't work, they continue to be endorsed by people like Kamal Harris.
Pure politics. Consider the type of people that are on the progressive left. Many of these people are just losers. They are economic failures. If someone tells them they can live at the expense of another, they are all for it. All they have to do is vote. Besides, landlords are part of the oppressive class, so they can feel justified in stealing from them.
Anyway, if you want to learn about economics from an Austrian economic perspective, check out Hazlitt's Book. It explains why many modern economic ideas that people accept as true are, in fact, wrong and why they are wrong.
The .1% Refugee Crisis
The nature of wealth has evolved once again. No longer is fertile acreage the primary source of wealth in a developed nation—nor is it the factory or the teeming masses of laborers. Instead, increasingly, wealth is expressed in the form of knowledge and intangibles, as opposed to sedentary assets. Wealth is now made up of patents, highly-specialized job skills, computer code, public securities and crypto-currency. Those with wealth can simply pick up when they don’t enjoy the rules. This has been an ongoing trend for many decades, but it’s been accelerating in the past few years. Previously, you needed to be near a big city, and close to business contacts. There were network effects that made certain cities into meccas for certain industries. You were an outcast if you fled, and your earning capacity declined inversely with your proximity to where your industry was located—besides, the amenities in many tax havens were severely lacking. That has mostly been negated by technology. Video calling is more efficient than a 3-hour lunch, and it connects you instantly. Data is ubiquitous; you no longer have to sit in a conference hall to learn a unique factoid. Your business relationships are just as likely to be mobile as you are. The world has changed, but the Socialist taxing state hasn’t considered this possibility. If anything, they’re choosing to tax the productive class even harder.
The bottom line is that the world is a competitive place. If you are someone that has the ability to work online you can work anywhere. Many governments realize this and have created programs to attract high-value people to their countries. This can mean generous residency programs, low taxes, and even incentives and subsidies to move to these places.
It isn’t always just about tax breaks and the highest-speed internet. Quality of life is becoming increasingly important for many, and the West, in many places, is turning into a dump that treats its native populations like feudal serfs. Why stick around if you do not have to and be abused by the political class that hates you?
I have been saying this for years, and the trickle is beginning to increase. Some people want religious and family-positive cultures.
This is a trend to keep on your radar screen. Capital, including the human type, always goes where it is treated best.
Danielle DiMartino Booth: Recession? We Ain't Seen Nothin' Yet!!
The Sahm Rule, a widely-monitored recession indicator, triggered on Friday. Some analysts are arguing that it's too early to worry about a slowdown, that the economy is too strong currently. Others warn the US may already be in recession. So, which is it? For answers, we're fortunate to speak today with Danielle DiMartino Booth, CEO & Chief Strategist for QI Research LLC and author of the book "Fed Up: An Insider's Take on Why the Federal Reserve is Bad for America"
TRADER FERG (PART 2) | I’m a HUGE BULL on PGM’s, URANIUM & GOLD!
Thats it for this week. Stay safe out there.
Joh Polomny
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