Pipe dreams
2006-04-14
Landlords are grudgingly happy about a court ruling that allows
them to sue the state for losses from rent control. People who
have been paying artificially high market rates for housing aren't
so happy, because they'd have to foot the bill again for a
deformed market (this time as taxpayers). Tomislav Šimeček of
the OSMD landlords' association told Czech Radio that the
situation could have been avoided if politicians had had the
courage after the Velvet Revolution to end rent control. A similar
argument can be made about pension and welfare reform.
Politicians failed to recognize that a cut-off needed to be made,
so that elderly people unable to adapt to the free market were
protected but younger people were forced to stand on their own
two feet. Instead, the system is broken for both the elderly and
the able-bodied, and meaningful social reform remains wishful
thinking.
[Czech Republic deregulation controls]
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