ipl-logo

The Pros And Cons Of Raising Minimum Wage

770 Words4 Pages

“Price ceilings prevent a price from rising above a certain level. When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied, and excess demand or shortages will result. Price floors prevent a price from falling below a certain level. When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result. Price floors and price ceilings often lead to unintended consequences.” Minimum wage raise, something many people are hoping for. But will it work? When the government imposes a higher minimum wage, employers face higher labor costs and are forced to respond by decreasing other production expenses (Sullivan, 2014). Some …show more content…

People should be able to work in a top city and be able to afford to live there too. New York is a prime example of rent control, according to US news the average home in New York is $384,202 and the average salary is $60,108. It seems very hard to get affordable housing, so the government has regulated the rent control to help keep the lower and middle income families living and working in large cities (The Economist, 2017). When the rent is capped and the price is stabilized, the tenants get a place to live within their economic means. Many people want and need this opportunity, so the need out numbers the product (The Economist,2017). Many tenants don’t have the ability to get credit to try for better housing. The free market would not let all economic classes rent in certain areas. Some basic problems can occur; since there are many people living in a capped area the owners are not making the money they want off of it, therefore they may cut costs in areas such as utilities and basic upkeep. This causes some of the current housing to deteriorate. Others may stay in a rent controlled building longer than necessary because of the economic price, even if it is too big or small for the family (Gelinas, 2012). Another downfall for rent control is that people will choose to live alone, if they can afford the rent, reducing the number of necessary apartments for others. Also people of all incomes can rent one of these apartments example Cindy Lauper, Mia Farrell, Gov David Patterson, etc... (Gelinas,

Show More
Related

Housing Affordability Act Case Study

2187 Words | 9 Pages

Efforts to save on housing expenses often lead to higher transportation costs, with the result that an even larger portion of household budgets is consumed by the combined burden of housing and transportation costs” (Beltway Burden, 2009). On page seven of the same article, it portrays data that show where the highest monthly housing cost is concentrated in Washington. The data shows that most of the highest rent is concentrated in the heart of the city and less expensive on the outskirts of the city. Households are trapped in areas close by Washington D.C. due to the job needs and high transportation further out of the city. A change needs to be implemented regulate the economy and decrease the burden on households with small

Read More

Supply And Demand Simulation Paper

820 Words | 4 Pages

It depicted the various economic factors that affected the management of the property and how the supply and demand affected the firm’s bottom line, while paying attention to how community expansion and unemployment played key factors in how rental rates are conceived. It also took into consideration that if there was a decrease in demand from consumers for the apartments being offered the demand curve shifted to the left, the reason for that shift was the increased desire to own property rather than rent an apartment. To combat the surge in the consumer desire for property ownership the property management firm was forced to lower rental rates to increase demand for their apartments. Because they were forced to do this by a change in consumer desires the equilibrium price had to be reduced because the demand for the apartments decreased while the quantity remained

Read More

An Analysis Of The Chourn Cycle Of Homelessness

918 Words | 4 Pages

An example of this is gas, when gas prices go up people have a tougher time going to work due to the fact that they can not afford to put gas in their car, when people can not work they have no income coming resulting in not being able to afford house payments or other things. “A large body of academic research has consistently found that homelessness in an area is driven by housing costs, whether expressed in terms of rents, rent-to-income ratios, price-to-income ratios, or home prices. Further, changes in rents precipitate changes in rates of homelessness: homelessness increases when rents rise by amounts that low-income households cannot

Read More

Thomas Butler Jr.: The State Of Homelessness

1145 Words | 5 Pages

According to Alastair Boone in Citylab, the government has been raising up the rent for homes, but not job incomes. Since the incomes of people are not high, it’s getting more difficult to find houses and it’s putting people at risk of being homeless.(Boone) This is unfair to all the people because it’s not all their fault, the government is not raising up the incomes, which causes people to go bankrupt. Daniel Neiditch from the Huffpost states that homeless doesn’t always mean they don’t have a roof over their heads, it can also mean people move in with other people because they don’t have a roof of their own. ( Neiditch)

Read More

Misconceptions Of Working Poor

741 Words | 3 Pages

A common misconception is that it is easy to move somewhere with cheaper housing if the cost of housing in a given city is considered unaffordable. However, many low wage workers have dense, local networks, in which family ties are important to their financial support and stability. Additionally, low wage workers are frequently employed in positions with low job security, and moving to a new location (and a new job) with a high risk of unemployment often discourages workers from moving. Another misconception is that public housing is highly accessible for those living below the poverty line. However, as Group 2 pointed out, in Los Angeles there are just over 6,500 public housing units while over 800,000 individuals are below the poverty line.

Read More

The Pros And Cons Of Rent Control

460 Words | 2 Pages

It uses the idea of robin hood principle, which take from the rich (landlords) and give to the poor (tenants). Rent control has definitely caused an inefficient market outcome. The price of renting is set below the market-clearing levels, and apartment shortage is an inevitable outcome when quantity demanded greater than quantity supplied. The consumers (tenants) are frustrated and the quantity will adjust to quantity sold equals to quantity supplied only. The ultimate result of rent control is vacancy rate of zero and halt of new construction.

Read More

Pros And Cons Of Rent Control

740 Words | 3 Pages

Demand will necessarily exceed supply in the controlled market. Those unable to find homes will invariably move to the uncontrolled sector for bidding up rents. Thus, rent controls will actually cause a majority of the people seeking rental accommodation to pay higher rents than they would have paid in absence of rent controls. Fixation of standard/fair rent as a percentage of the cost of construction is a major disincentive for those wanting to invest in rental housing as it gives a very low rate of return as compared to other assets. The low rate

Read More

Pros And Cons Of Urban Gentrification

1146 Words | 5 Pages

All over the country, the cycle of gentrification is displacing lower-income residents. Gentrification usually done by middle class themselves, without developers, and without much help from government. In most American cities, as sociologist William Julius Wilson has argued, de-industrialization and the ascendancy of the information age have inverted traditional structures of urban life. With most factory jobs shipped abroad or lost to automation, professional white-collar jobs and low-paid service jobs with few benefits are taking their place. Meanwhile, white-collar workers eager for convenience and a neighborhood are flocking back to the central cities.

Read More

Pros And Cons Of Poor Landlords

212 Words | 1 Pages

It is paradoxical that poor people need to bear a relatively heavier price to maintain their lives. The majority of poor renting

Read More

The Cause Of Homelessness In Los Angeles County

372 Words | 2 Pages

The lack of affordable housing is one of the many causes of homelessness and also prevents homeless people from improving their situation. Homeless people also lack the appropriate services that will allow them to improve their living circumstances. As a result, homeless people are not able to improve their living situation

Read More

Essay On Homeless Epidemic

743 Words | 3 Pages

In addition, Low income individuals are facing a lack of housing that is affordable causing them to be evicted or become homeless (National Alliance to End Homelessness). Without housing being available to low income individuals, some look to find apartments and find out they have to deal with rent being increased. “Rent has increased at its fastest rate since 1986, putting houses and apartments out of reach for more Americans” (Lopez). With no other housing options being available, they face living on the streets. Consequently, “Every year, roughly 13,000 homeless people die in the US” (Stasha).

Read More

What Causes Homelessness In America Essay

463 Words | 2 Pages

Many families are forced to live with other family members or friends just so they can pay their bills and not live on the street. There is only about one-half of low income rental properties per the amount of low income families that need housing. After paying rent, low income families have already spent 75% of their income. That doesn’t leave much for food, medicine or transportation (Homelessness in America, 2015).

Read More

Gentrification In The Mid-Twentieth Century

1839 Words | 8 Pages

The term is frequently utilized negatively, proposing the dislodging of poor communities by rich pariahs. In any case, the impacts of gentrification are mind boggling and opposing, and its genuine effect changes. On breaking down reasons for gentrification, distinctive researchers have call attention to monetary worries as one of the significant reasons for gentrification (Abel and White, 246). To put it all the more unequivocally, the financial development of expansive urban communities adds to the quick advance and development of the population alongside the development of necessities and prerequisites of the population concerning neighborhoods, accommodations and environment. In such a situation, the more youthful generation of experts and representatives of the middle class regularly likes to move to low-income and working class communities, where they can manage the cost of buying a perpetual lodging at a relatively low cost and, along these lines, begin living separately from their folks, owning their own lodging (Woodard).

Read More

Affordable Housing Essay

1146 Words | 5 Pages

Affordable housing is just one of many benefits that this policy has brought to the city, as it has also given tenants greater housing security, with a lower likelihood of being displaced, as well as keeping diverse neighborhoods intact by preventing gentrification. However, New York City has also faced numerous challenges with enacting the rent control policy. For example, landlords may neglect to upkeep the property due to the lack of profit, in turn worsening the shortage of available housing. The policy has also led to a two-tiered market system in the city, with older properties covered by rent control being less expensive, while newer properties are more costly. The controversial policy ultimately is a double-edged sword, as there are pros and cons that the city needs to take into account.

Read More

Addiction And Homelessness Essay

1244 Words | 5 Pages

Not to mention that 76% of said households have a “major cost burden” and “There are currently only 26 affordable and available rental homes per 100 extremely low-income renter households in the state (Nlihc Pg.1).” Making

Read More

More about The Pros And Cons Of Raising Minimum Wage

Open Document