Thursday, September 24, 2015

Democrats hate Homeless People. Homelessness in LA is going up!

There is a record-level of poverty and homelessness in the city of LA. . Everywhere I go I see plenty of Obamavilles. As usual, you know who I will blame: the Democrats in charge of the city of LA (and the Federal Reserve). First: a) LA makes it very difficult to create any kind of building, including apartments; b) LA has rent control on the books for old apartment buildings that are aimed at those with moderate incomes. So a developer or landlord who wants to make a profit would have an incentive to ignore the market for apartments for those with average incomes because at some point in the future, rent control might be imposed. Further, the Federal Reserve makes things even worse because the zero interest policy makes asset prices go up, including land. As a result, to buy land to create apartments requires more money, and as a result, rent has to be even higher to make the investment worthwhile. If you ask me, this is more evidence that the Democrat Party hates the people they claim to support. Or they are just extremely stupid.

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