Today's announcement that a future Labour Government would introduce rent controls for private landlords by limiting rent increases is another reminder that Ed Miliband would be a dangerous man to be elected as Prime Minister. They say you could put 10 economists in room and get 15 opinions. 95% of economists think rent controls are a disaster, leading to worse housing stock and fewer rental properties.
On top of energy price freezes and bans on zero hour contracts we are beginning to see the patterns of a very interventionist Government putting its fingers into all sorts of pies. It all sounds a bit tame at the moment, but where does it end? Into how many further businesses and areas would the command economy mechanisms intrude? The 'Cost of living crisis', created by the Labour recession, is a great cover for old fashioned socialism.
It must be stopped. This is where we were in the 70's. It's where Venezuela is now, starting with control of oil it now has controlled shops with rationed buying and shortages of toilet paper.
We learnt via Mrs Thatcher that the 70's command economy could not be successful. Let us not fall into it again.
Squiffy.
Thursday, 1 May 2014
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