I passed the passage of the book “Economy in 1 Lesson”. Henry Hazlitt wrote it in 1948. This lower passage on the control of activities was made in 1961. Although these are constant considerations, they are inactive active. But first, abbreviated by this chapter: ‘Activity control’
1. Impairments and wheels
The prohibition of increased activity, despite increasing demand, leads to a permanent failure to place – the tenants save, with little locality, but the full number of localities does not increase.
2. Surface waste
The protection of permanent activities pre-empts the tenants of the already occupied – they do not change the movement, erstwhile they request to collapse, which blocks access to fresh ones.
3. Impact of innovation and fresh developments
With the freezing activity of the return from the investments, they will collapse below the cost of construction and maintenance. As a result, the devolvers trust on fresh projects, devolved by the deficiency of resources.
4. Degradition of the existence of a society
Since more activity is not unique to these costs, they are liable for refurbishment and refurbishment – buildings are more likely to work in the ruin, giving birth to ghettos and slums.
5. Discrimination and non-rational subsidies
We keep back-to-back control for “tasks” of the sites, and slow down the gaps in the locations that have encouraged the improvement of ecclesiastical non-revolutionary capacity of the cost of placements for people with lower incomes, devoting inequality.
6. Go to the state of construction
When we become besides visible, the government engages in tiny but non-malignant social communities, which are financed by the taxpayers, which lowers the relation between the primary and the tenants.
Grzegorz GPS Swiderski
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CONTROLLEMENTS
The government's control of activities for houses and premises will be peculiarly circumstantial to price control. Its effects are mostly about the existence of tacs, specified as the effects of any another price control, 1 fewer of them request to be developed individually.
Some activities are controlled by the general price control, but are more frequently determined by separate legislation. This usually happens at the beginning of the war. In a tiny town, there is simply a separate division of the military; they are more active in the area for hire; they besides rise the more active competent aparttaments and domains for hire. This leads to widespread outrage. In another regions, the existing houses are one more time bombarded, and they request reinforcements or another supplies for the civilian society.
The first step is to introduce a control of the activities, arguing that they have not yet been "elastic" — i.e. that their failure cannot be completed by the above, regardless of the size of the increase in activity. It is argued that the government is now liable for the increase of activities, the protection of the tenants from extortion and exploitation, and that it does not make any kind of harm and does not discourage the renewal of fresh premises.
This argument is valid for vet on the presumption that the control of the activities has not lasted. It ignores the effects. If the owners are willing to operate from the monetary and spiritual inflation, they will save money and demand, with less towns. This leaves another places in places that are besides small. This is the number of places that will give a greater number of people until they are satisfied.
Necessity to control activities that encourage the spread of local space. It will do so, which is already occupied by residents or houses in a given town or region, the end of all those for which they are not available. If action is taken to increase to a lower market, it is available to all customers and to any local customers. In the valuing of monetary or non-financial inflation, more activity would be so effective that the owners did not set prices, but only the highest competitive mark of the tenants.
The results of the control activities become worse, the longer it takes. There are no fresh homes due to the fact that there are no incentives for them. At the tallness of the building blocks (typically in terms of inflation), the erstwhile activities do not give life. If, as frequently happens, the government becomes aware of this and releases fresh buildings from the control of the activities, it is not as strong as it would have been if older buildings had not been consolidated. Depending on the degree of depreciation of money, the volume of activity in the fresh buildings may be more than 10 or 20 times higher than in the old buildings of akin quality. (This was an example in France after the Second planet War). This strategy discourages customers in permanent buildings to change their properties, regardless of how their families grow or their locality is reduced.
Due to the low-level activity in the buildings, the tenants, who are already engaged in them and whose primeval activities have been protected from increased activity, are already encouraged to usage the area of the local area as their families shrink. In this way, there are fewer fresh buildings in the world. It is from the hands of the incumbents to the higher than would have been achieved in an entirely free market.
This does not, however, encourage the improvement of fresh buildings. Buildings or owners that already be in homes with tenants find that there are permanent suffrages and that they can't put it in fresh buildings. In addition, they are able to — or those who hold capital from another sources — to argue that the government can in any case find an excuse to carry out control of nancial activities in fresh buildings. This frequently happens.
The situation will besides increase. What is most crucial is that if they do not let themselves to become more active, they will not be afraid about the displacement of their homes or their vocations. Indeed, erstwhile the controls of activities are peculiarly separate from the findings or opinions, they will not be decently completed in the most essential repairs. Not only will they not have the ecological incentives to do so, but they may have no financial means. It establishes a control of the activities, among the another effects, leading to the incorrect stages between the owners, who are forced to halt on the small-lived, or navet, which have suffered losses, and the tenants who complain that they do not decently conduct the essential remonts.
The next step is to establish the leaders, which act simply under the force of a number of or mislead the false ones and keep them for little or lower standards. It is argued that the renters can call on them to pay the more active, mediocre ones cannot afford it.
The consequence of this family's discrimination is precisely counterproductive, which they have on its own. Incentives and rewards builders and owners of large-scale apartaments; disincentives and building units and owners more needed lower standard. The first is to usage specified large lives, while the backs of the food supply and demand, and the another leaves without incentives to build fresh land with cheaper meat (and the navet leaves their capital).
The consequence is simply a tendency to build them in fresh homes. There is no request to encourage people to have low incomes, or to keep the existing birthplaces in a good standing. Thus, the localities of the low-cost groups will have even worse quality, and their number will not be affected. As the number of peoples increases, the poorerness and the deficiency of cheaper places will deepen all time more and more. They can scope a point where the majority of the owners do not yet have any food anymore, but they stand still, as a consequence of greater losses. They may be afraid that they are not free to retaliate for darmo. They can then leave their property and disappear, and they cannot be charged with taxes. The owners halt ensuring heating or another sub-services, which force the tenants to order the property. It besides becomes a slum. The last fewer years in the fresh York City have become the largest in the world, where windows are smitten and smitten in order to prevent further collapses. More often, they become sub-fuels, of which they are owned.
Further consequence of the drying of sources of local income, as the value of non-revolutionary capacity subject to taxation continues to decrease. Urban bancruts are not capable of providing sub-services.
Although these effects become so clear that they are blinded, after all, by those who have introduced a control of activities, there is no apparent evidence of complete error. They accuse the strategy of capitalism. They believe that a successful enterprise can not be consulted once. They so argue that you gotta enter and that you are able to deal with inexpensive buildings.
This is how it happened in almost all the countries that were active in the Second planet War or introduced a control of the activities, in order to anticipate monetary inflation.
Thus, the government has been able to carry out the construction work at the expense of the taxpayers. The buildings are rented after prices that do not include building and maintenance costs. This week’s improvement is based on the fact that the government is in charge of the yearly subsidiaries: or straight to the tenants — in the form of less-than-executive activities, either construction or construction, and the government of the state’s construction industry. Regardless of the nature of the fresh development, which is besides subsidized by the remainder of society. It pays for the part of the activity. They are bleached and given the privilege. The possibilities of being besides clear to be stressed. Intruders — the locals — have the experience that they have a real connection with them. The combined, almost close-returned steps are possible in this context of the welfare state.
And finally, ironically! The more the control of the activities is detached from the sects, the palatable and the illiterate, the greater the bitterness is led by the number of the arguments on its behalf. If there are more than 95 percentages of the activity of the free markets and the second have been established, there are less than 5 percentages of the activity of the free market, since the host will gotta pay for the increase in the average of 5 percent. But erstwhile the inflation of money is so large or so great, the price control has established 10 percent of the activity of the preferred markets, while the owners of the large non-sponsorial activity, to rise the large cry of the stratture, would lead to greater unsponsiveness, and to force the inhabitants to pay the large cry of the stratture, to a greater ecological failure. It is argued that it would be an unintelligible cruelty and senselessness from the tenants to pay specified a abrupt and massive increase.
The navets of the superior controls are so inclined to admit that they must be the process of being carried out very carefully, gradually and in a certain part. Thus, the fewer behind have a tiny number in these warped areas to the degree of the number of physical and ecological intuitions in order to get even a degree of gradual congestion. In so doing, the greater the control of the activities of the plants, which are detached from the nature and the illiterateness, the greater the difficulty of the process. In large numbers, the destructive control of the activities is maintained by the full after the disposal of another parent price controls.
The broad terms for maintaining price control are based on reliability. The regulations supply that the control can neglect erstwhile the portions of the ready-to-use property have a certain number. The officials holding the audit of the activities will point out that they inactive have besides fewer of them. Of course. Simplely, the more permanent activities are based on more than the market, and this will increase the request for the space to be rented, but will discourage the expansion of the supply. Thus, the little reason the government will show in the setting of the low peaks, the more certain it will proceed to be that there will be "inadequacy" of the rented land and land.
The owners are scanned by a number of non-businesses. We repeat — they are forced to subsidise, frequently the end of their own losses. It is frequently the case that subsidiaries are richer than owners who are forced to take part in the market. The polytechnics teach it. There are people in the another branches of the hotel, who are not willing to take part in the thought that and from them the government would be able to request that, by taxing, they take on their own responsibilities for the tenants. The full burden will fall into a very tiny class of people who were very bad at the same time that they had built up or sat down for hire.
Few more terms than the owner of the slums. But who's he talking about? It is not a individual who has a ruined non-revolutionary capacity on the slum where the lowest is active, but who has the most distant, uncertain and unsociable payment. The failure to control the community, from a certain point of view (except in the case of the locality of the locality), a individual who might be able to usage the locality in order to make a slum.
When unreasonable price control is subjected to the art of direct consumption, specified as bread, bakers can simply halt producing and processing it. Necessity becomes clear, which forces the politicians to rise the maximial or depress the control. But the towns are very durable. It may be respective years before the most deprived people feel discouraged from building fresh homes, average renovations and repair. It may be noted that the failure and depravity of the premises originate straight from the control of activities. What is more, as long as they usage the jacillating income, although any of them cross the line between donations and interest from the hi-tech core, they seem to have no another choice but to keep and rent their non-ruchomotors. Policians — remembering that the tenants have more heads than the owners — have a long-term control of activities after the coercive have been separated from the general price control.
So we're back to our top class. The force on the control of activities is from those that consider the short-term benefits, which in their image will usage 1 large part in society. But erstwhile we consider the long-term effects, we think that the control of the activities of the plants is not behind, more fruitless, but sometimes more severe, and even more so, the more severe and the longer it takes.
