What is the best way to make sure private firms do not invest in a particular industry? Take the profit out of it. That is exactly what some politicians in Delaware are doing by trying to impose rent controls on manufactured housing communities. (Story here)
The real gem in this story is this quote:
Laurel Sen. Robert Venables, who voted against a similar bill last year, cast one of the deciding votes for the measure Thursday despite opponents’ concerns the restrictions will result in fewer manufactured-home communities across the state.
“I’ve always been a no vote,” Venables said. “But I told landowners last year if they kept raising rents in this economy, I was going to have to support the bill.”
In other words, do what I say, or else.
By imposing these sort of draconian regulations, investors will simply find other places to invest (Virginia welcomes investment — call us — we can put you in touch with someone!). That means less affordable housing choices, and the real losers end up being the folks who these politicians claim they are trying to help.
Ahh, election year politics at its finest.