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Unless they are used as strictly temporary measures,
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11 Jun 2010, 11:47
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Unless they are used as strictly temporary measures, rent-control ordinances (municipal regulations placing limits on rent increases) have several negative effects for renters. One of these is that the controls will bring about a shortage of rental units. This disadvantage for renters occurs over the long run, but the advantage—smaller rent increases—occurs immediately. In many municipalities, specifically in all those where tenants of rent-control units have a secure hold on political power and can get rent-control ordinances enacted or repealed, it is invariably the desire for short-term gain that guides those tenants in the exercise of that power. If the statements above are true, which one of the following can be properly inferred from them? (A) It is impossible for landlords to raise rents when rent controls are in effect. (B) In many municipalities rent-control ordinances are repealed as soon as shortages of rental unites arise. (C) The only negative effect of tent control for renters is that it brings about a shortage of rental units. (D) In many municipalities there is now, or eventually will be, a shortage of rental units. (E) In the long term, a shortage of rental units will raise rents substantially.
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Re: Unless they are used as strictly temporary measures,
[#permalink]
11 Jun 2010, 12:25
Unless they are used as strictly temporary measures, rent-control ordinances (municipal regulations placing limits on rent increases) have several negative effects for renters. One of these is that the controls will bring about a shortage of rental units. This disadvantage for renters occurs over the long run, but the advantage—smaller rent increases—occurs immediately. In many municipalities, specifically in all those where tenants of rent-control units have a secure hold on political power and can get rent-control ordinances enacted or repealed, it is invariably the desire for short-term gain that guides those tenants in the exercise of that power.
If the statements above are true, which one of the following can be properly inferred from them?
(A) It is impossible for landlords to raise rents when rent controls are in effect. - extreme - incorrect
(B) In many municipalities rent-control ordinances are repealed as soon as shortages of rental unites arise. - Correct - Tenants have a secure hold to enact or repeal the rent-control ordinances. Is is their desire to enact those ordinaces for short term gain. The short term gain will lead to the long run disadvantage of shortage of rental units for which the tenants have the secure hold to repeal the rent control ordinances.
(C) The only negative effect of tent control for renters is that it brings about a shortage of rental units. - incorrect. Argument says "rent-control ordinances have several negative effects for renters"
(D) In many municipalities there is now, or eventually will be, a shortage of rental units. - incorrect. we cannot say that.
(E) In the long term, a shortage of rental units will raise rents substantially. - incorrect. Nowhere the argument says this.
Re: Unless they are used as strictly temporary measures,
[#permalink]
11 Jun 2010, 13:52
In many municipalities,....., it is the desire for short-term gain that guides those tenants in the exercise of that power.
So if there is desire for short-term gain then in those municipalities there is or eventually will be, a shortage of rental units (in long run) - which is D.
Re: Unless they are used as strictly temporary measures,
[#permalink]
11 Jun 2010, 23:48
seekmba wrote:
In many municipalities,....., it is the desire for short-term gain that guides those tenants in the exercise of that power.
So if there is desire for short-term gain then in those municipalities there is or eventually will be, a shortage of rental units (in long run) - which is D.
Here in the last line, i don't we are talking about the short term gains of the renters rather we are talking about the short term gain of the tenants.
Aren't there 2 parties involved in this question - the renters and the tenants
The short term gain for renters is to increase the rents which in a long term would be an advntage for tenants but short term gain for tenants is to bring the rent down by exercising their powers.
So when tenants bring the rent down, the availability of rental units go up, isn't it. ==> short term gain of one party is a loss for the other.
Re: Unless they are used as strictly temporary measures,
[#permalink]
12 Jun 2010, 02:22
papillon86 wrote:
seekmba wrote:
In many municipalities,....., it is the desire for short-term gain that guides those tenants in the exercise of that power.
So if there is desire for short-term gain then in those municipalities there is or eventually will be, a shortage of rental units (in long run) - which is D.
Here in the last line, i don't we are talking about the short term gains of the renters rather we are talking about the short term gain of the tenants.
Aren't there 2 parties involved in this question - the renters and the tenants
The short term gain for renters is to increase the rents which in a long term would be an advntage for tenants but short term gain for tenants is to bring the rent down by exercising their powers.
So when tenants bring the rent down, the availability of rental units go up, isn't it. ==> short term gain of one party is a loss for the other.
Is my understanding of the argument valid?
Thanks
As per my understanding, both renters and tenants are the same guys, arent they??
Status:Impossible is not a fact. It's an opinion. It's a dare. Impossible is nothing.
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Re: Unless they are used as strictly temporary measures,
[#permalink]
12 Jun 2010, 12:14
Still a UFO !!
Here is the complete logic -
One of these is that the controls will bring about a shortage of rental units. This disadvantage for renters occurs over the long run, but the advantage—smaller rent increases—occurs immediately.
Nails the argument.
Tenant = who pays rent Short term gain = advantage for renters
Re: Unless they are used as strictly temporary measures,
[#permalink]
28 Sep 2015, 20:10
OE: When tenants of rent-control units have political power, and can make or break rent control laws, they’re always motivated by desire for short-term gain. According to the author, short-term gain (smaller rent increases) comes from applying rent control. So when tenants of rent-control units have the power to enact rent control, they will also desire to do so. That means they will enact it. What’s the result? According to the stimulus, the long term result will be a “shortage of rental units.” Finally, we know that in “many municipalities” tenants of rent control units do have this political power. That leads at last to (D) ; in many municipalities, there will eventually be a shortage of rental units (owing to the rent-control laws perpetuated by those politically powerful tenants).
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
gmatclubot
Re: Unless they are used as strictly temporary measures, [#permalink]