Comments on: India, Rent Control, and Discrimination http://calpolymbatrip.com/2010/india/india-rent-control-and-discrimination/ The MBA Graduate Program at Cal Poly Tue, 22 May 2012 21:48:19 +0000 http://wordpress.org/?v=2.6.3 By: Alex Thornton http://calpolymbatrip.com/2010/india/india-rent-control-and-discrimination/#comment-18134 Alex Thornton Wed, 26 May 2010 00:39:04 +0000 http://calpolymbatrip.com/?p=2522#comment-18134 Mike, you have highlighted one of the points Dr. Marlow makes in our Macroeconomics class. The government can create whatever laws it likes to prevent "undesirable" practices, but individuals will simply develop ways to work around the new laws. Creative energy is then spent on nonproductive uses avoiding restrictive laws instead of helping society. That said, if the end goal is equality rather than efficiency, perhaps rent control laws get the job done. Mike, you have highlighted one of the points Dr. Marlow makes in our Macroeconomics class. The government can create whatever laws it likes to prevent “undesirable” practices, but individuals will simply develop ways to work around the new laws. Creative energy is then spent on nonproductive uses avoiding restrictive laws instead of helping society.

That said, if the end goal is equality rather than efficiency, perhaps rent control laws get the job done.

]]> By: Michael Minasian http://calpolymbatrip.com/2010/india/india-rent-control-and-discrimination/#comment-18076 Michael Minasian Mon, 26 Apr 2010 00:11:31 +0000 http://calpolymbatrip.com/?p=2522#comment-18076 One of the biggest problems with rent controls (especially in the US) deals with the impossibility of proper enforcement. Say the most that a place could be rented for is 600 dollars/ month. The landlord could say the flat is "furnished" and demand an additional 200 per month. Another popular tactic is threatening lack of maintenance or upkeep without additional payment. I don't know if these issues are a problem with Indian rent controls, however they certainly don't work here. One of the biggest problems with rent controls (especially in the US) deals with the impossibility of proper enforcement. Say the most that a place could be rented for is 600 dollars/ month. The landlord could say the flat is “furnished” and demand an additional 200 per month. Another popular tactic is threatening lack of maintenance or upkeep without additional payment. I don’t know if these issues are a problem with Indian rent controls, however they certainly don’t work here.

]]> By: Hemanth http://calpolymbatrip.com/2010/india/india-rent-control-and-discrimination/#comment-18070 Hemanth Sat, 24 Apr 2010 22:49:06 +0000 http://calpolymbatrip.com/?p=2522#comment-18070 Alex, when I saw the logic that you applied, I rolled over in laughter. Its not because your logic is funny. Its because its written with a premise of what works in US. Let me give you an example. In India, say you don't have rent control. Do you know what discriminating land lords are likely to do? They will charge 'other' people higher prices than they would do to their perceived-kind. This is because they tend to see their kind as reliable. It doesn't matter what price the 'other kind' could afford, they will go through their 'kind' before renting room for the 'other kind' , irrespective of money people are willing to pay. India belies logic and that's why it confounds westerners. Things are changing though, and then my logic will hopefully be outdated and your logic will be applicable. P.S. I don't like using the term 'caste' as people use it very loosely without attempting to understand the structure. They tend to associate every perceived evil to caste. It doesn't explain everything in India. But, I do see caste system as bad and likely a factor which makes people xenophobic. I see it here in US with radical christian religious groups (got to see it during last election), in palestine and Afghanistan with radical muslim groups and everywhere all over the world. Discrimination has been there from beginning of time. It will always be there unfortunately. Its just that baton passes from one kind of group-ism to another kind of group-ism meaning, caste could be replaced by money or region or religion or a new kind of caste-ism. We can never eliminate it. All we can do as good-intentioned people is to work towards tempering it. Alex, when I saw the logic that you applied, I rolled over in laughter. Its not because your logic is funny. Its because its written with a premise of what works in US.
Let me give you an example. In India, say you don’t have rent control. Do you know what discriminating land lords are likely to do? They will charge ‘other’ people higher prices than they would do to their perceived-kind. This is because they tend to see their kind as reliable. It doesn’t matter what price the ‘other kind’ could afford, they will go through their ‘kind’ before renting room for the ‘other kind’ , irrespective of money people are willing to pay. India belies logic and that’s why it confounds westerners. Things are changing though, and then my logic will hopefully be outdated and your logic will be applicable.

P.S. I don’t like using the term ‘caste’ as people use it very loosely without attempting to understand the structure. They tend to associate every perceived evil to caste. It doesn’t explain everything in India. But, I do see caste system as bad and likely a factor which makes people xenophobic. I see it here in US with radical christian religious groups (got to see it during last election), in palestine and Afghanistan with radical muslim groups and everywhere all over the world.

Discrimination has been there from beginning of time. It will always be there unfortunately. Its just that baton passes from one kind of group-ism to another kind of group-ism meaning, caste could be replaced by money or region or religion or a new kind of caste-ism. We can never eliminate it. All we can do as good-intentioned people is to work towards tempering it.

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