Rent Control Burns People Alive!

Rent Control

Representative Alexandria Ocasio-Cortez (D-NY, 14th District) has called for nation-wide rent control. AOC’s plan is to not allow rent increases larger than 3% per year. This is somewhat surprising, given that she majored in economics at prestigious Boston University. I – along with virtually every other economics professor in the country — am always at great pains to present in my introductory to micro-economics courses the familiar supply and demand diagram. It demonstrates that rents below equilibrium levels create shortages. I suppose she missed that lecture. If so, she really should have obtained the class notes from someone else, and/or perused her introductory textbook.

Senator Bernie Sanders has, if anything, done her one better: he is calling for a national rent control policy. California Governor Gavin Newsom has signed into law a policy along similar lines: rent increases shall be limited to 5% annually, in addition to any inflationary increases; this is coupled with making it more difficult to evict tenants.

Present New York City policy is very much in keeping with Rep. Ocasio-Cortez’s plan. It has recently worsened its previous rather Draconian rent control legislation. The presumed aim is to help tenants. But, there is something in economics called “unintended consequences.” Translation: “the plans of mice and men often go astray.”

Suppose, instead of exacerbating its rent control regulations, that the city council of this great city had tried this sort of thing with a different consumer good. Suppose the Big Apple had passed a law placing a ceiling of $1 on a fast food meal.The obvious result would be that McDonalds, Burger King, Wendy’s and their ilk would pretty much vacate the entire city. Posit that the city council mandated that gas stations charge no more than $1 per gallon. A similar result would ensue. Denizens of the New York City would be greatly inconvenienced.

Mr. DeBlasio would never institute any such ridiculous initiative. He would be laughed out of office if he did. Why, then, does the mayor think he can get away with inculcating analogous rules for residential real estate? This is because while burger and gas emporiums can easily locate elsewhere, the same is not true for buildings. If the owners had their ‘druthers, and this were economically and legally possible, they would hoist their real estate holdings upon onto giant wheeled vehicles, and roll them out of the city as soon as possible. New York City would then have no more accommodation for tenants than it would have fast food outlets or gas stations, under our hypothetical contrary to fact scenarios.

Of course, landlords can do no such thing, much as they would like to; heck, they would give their eye teeth to be able to cock a snook at the politicians in this manner.

But this inability of landlords does not mean that rent controls have no adverse effects upon local residents. They can certainly build less new capacity than would otherwise be the case. They may be legally compelled to upkeep and maintain presently existing apartments, but they will do so only reluctantly. “The customer is always right” which prevails in most industries, and will continue to do so for commercial and industrial real estate, which lack such unwise price controls, but will not apply to residential units. They will fight like the dickens to convert their holdings to condominiums and cooperatives. They will have incentives to – how can I put this delicately – not to be too unhappy if their buildings accidentally catch fire. Do we really want to promote such incentives, whether or not they actually become implemented?

Vacancy rates will plummet even further, with these new dispensations. This will have negative repercussions on labor mobility, when occupants fear to give up their rent controlled units. There will be a tendency to convert apartments to stores, to industrial and commercial uses. New laws will have to be enacted to prevent this, and will not be totally successful. Landlord – tenant relations will plummet even further (not of course for non-controlled, non-residential units.) New York City already has special courts charged with solving these confrontations. This is something not at all needed in any other industry. These costs are substantial, and the money misallocated in this direction could have been far more wisely spent.

The economics profession is not unified on too many issues, but this one is an exception. Opposition to rent control stretches all the way from Milton Friedman and Friedrich Hayek on one stretch of the political spectrum, to several scholars on the very opposite side. For example, in the view of Nobel Prize winner in economics Gunner Myrdal, “Rent control has in certain western countries constituted, maybe, the worst example of poor planning by governments lacking courage and vision.” And according to Assar Lindbeck, a Swedish economist, “In many cases, rent control appears to be the most efficient technique presently known to destroy a city except for bombing.” Almost as a follow up, Vietnamese Foreign Minister Nguyen Co Thach averred: “The Americans couldn’t destroy Hanoi, but we have destroyed our city by the very low rents.”

It is urged in favor of this policy that tenants are poorer than property owners, and, often, are compelled to spend an inordinate percentage of their salaries on rent. But, with fewer buildings being constructed, and more of them falling into disarray due to reduced maintenance, upward pressure on rent levels, paradoxically, will tend to be the result. It is an economic truism that the less supply, other things equal, the higher the price. There are no exceptions for housing, or based on the fact that this expenditure plays a large role in the budgets of poor and middle class householders.

In any case, we do not single out textile manufacturers and insist they alone help clothe the impoverished, that only grocers and restaurants feed them, that automobile, air conditioner and television purveyors all on their own make these products available to those who cannot afford them. All of these income transfers come out of general funds. I do not at all favor any of these policies, but fair is fair. Why should housing be any different? Why should landlords, alone, have to bear the entire burden of housing the poor?

Not only should these latest violations of private property rights be rescinded, but the entire notion that rent control can alleviate housing shortages and high fees should be confined to the dust bin not only of history, but of economics too. From a legal point of view, this is a taking. Landlords should be compensated for this seizure of the (value of) their property.

From LRC, here.

נגד הגלותיות – דרך ארץ צריכה חיזוק, שנאמר חזק ונתחזק בעד עמנו ובעד ערי אלהינו

ראיון של הרב אורי שרקי ברדיו קול חי

Oct 22, 2015

ראיון של הרב שרקי ברדיו קול חי תכניתם של מני גירא שוורץ ודוד חכם בתאריך
ח’ בחשון תשע”ו 21.10.15. הרב מתראיין בעקבות דבריו החריפים בסרטון: https://goo.gl/F1QOG6
“אם יש פיגועים, צריך להתחזק בקרב מגע, בהגנה עצמית ובהשלטת הריבונות. בזה צריך להתחזק!”.

* המראיין: “שומע אותנו קהל גדול, הרב – במה אנחנו צריכים להתחזק”?
הרב: “אנחנו צריכים להתחזק בגאווה לאומית,
לדעת שהקב”ה הוא זה שהשיב אותנו אל הארץ..”
המראיין: “רגע, גאוה לאומית לפני תורה ותפילה”?
הרב: “הלאומיות הישראלית איננה דבר שאיננו קדוש; אלא אדרבא, הקב”ה בחר בנו וכרת איתנו ברית על הארץ הזאת, כרת ברית עם האבות – אברהם יצחק ויעקב, ולאחר מכן נתן לנו את התורה; הברית על הארץ היא חלק אינטגרלי של תורת משה, ואדרבא – היא אפילו קדמה למתן תורה” (!).
* “העמדה שלנו בגלות, כשלא הייתה לנו אפשרות לממש את הברית של הקב”ה איתנו – הייתה עמדה שבה יכולנו להתעסק אך ורק בדברים שהם רוחניים נטו, כמו לימוד ותפילה; ב”ה שהקב”ה עכשיו קיים את הבטחתו עם אבותינו והשיב אותנו אל הארץ – עלינו לממש את הברית הזאת”.

* “היום הקב”ה הוא לא רק ‘אלוהי בית המדרש’,
הוא גם ‘אלוהי מדינת ישראל בארץ ישראל’!.

* “המושג ‘השתדלות’ הוא מושג יקר, אבל הוא ירד מערכו בזמן האחרון,
כי כשאנשים מסתפקים בהשתדלות הכוונה: לא להצליח!
לא צריך להשתדל להניח תפילין – צריך להניח תפילין;
לא צריך להשתדל לשמור שבת – צריך לשמור שבת;
לא צריך להשתדל לנצח – צריך לנצח!”

* “אם אדם הולך ברחוב עם ביטחון עצמי, אז לא תוקפים אותו”
* “אני זוכר שבשנת תש”ח במאה שערים, אברכים נלחמו,
ולא אמרו שהתורה תגן, בגלל שבשעה שהצרה מגיעה אתה צריך לפעול”
המראיין: “וכשאסתר המלכה אומרת: צומו עליי,
התפללו כדי לבטל את הגזירות – זה קיים גם היום?”
הרב: “ודאי, ודאי, אלא שבסופו של דבר כאשר בוטלה הגזירה,
היהודים גם נלחמו במגילת אסתר, והרגו 75,000 אויבים”….

-uploaded in HD at http://www.TunesToTube.com

מאתר יוטיוב, כאן.

Shmuel Sackett: Emanuel Is A 100% Haredi City

The Right Idea but in the Wrong Place

Did you see the big headline news this past week? Well, in case you missed it, here it is: (This appeared in The Jewish Voice in English and a similar headline was in BeChadarei Chareidim in Hebrew) “Vizhnitz Chassidim to Establish New $500 Million Community in Lakewood”. Wait… there’s more. The article continues that the Vizhnitz Rebbe wants “his followers in Jerusalem… to move the community to Lakewood.” It then explains how this new community is being planned very carefully with beautiful large apartments containing 5 bedrooms, 4 bathrooms and even a playroom… all for just $500,000. The community will have a gigantic Beis Midrash “complete with a social hall, banquet hall and large mikvah… a yeshiva ketana and a yeshiva gedola. There are also plans for a building specifically for community businesses and daily needs.” Now THAT’S planning!

Before telling you what I think about this, I must inform you that Vizhnitz today has at least 10 (yes, TEN) different Rebbes. The common denominator of all these Rebbes – and what Vizhnitz is famous for – is their incredible Ahavat Yisrael. I truly salute them for this. This story is about the Rebbe, who took over from his father, the Vizhnitz Rebbe ztz”l of Monsey.

OK, where do I start?

Let’s begin with the good news. I think it’s great that a Rebbe is actively involved in planning, building and showing concern for his chassidim. The Vizhnitzer needs to be commended that he genuinely loves his followers and is trying to find them a community that is both affordable and meets the standards of Haredi/ Chassidic life. That’s why the first part of this article is called “The Right Idea”… because it is!

And now for the bad news. Yes, new Jewish communities need to be built, but in one place – and one place only – Eretz Yisrael. I realize that there are currently millions of Jews all over the world and I have no problem with them building a new mikvah when the need arises. This article, however, is about something completely different. It is about building a new community… which did not exist before. That is something I oppose 100%. An existing community that needs an eruv or a kollel? Fine, no problem – do it! But to go out of your way to build a new community, outside the Promised Land, starting from scratch with everything from A-Z… in Lakewood, NJ??? Are we out of our minds???

Trust me that I understand the problem these Chassidim have. Prices in Jerusalem are out of control and it is extremely hard to own an apartment there, especially one with “5 bedrooms, 4 bathrooms and a playroom!” It is unheard of. However, other options do exist and there is absolutely no need to take these beautiful Jews out of Jerusalem and “move the community to Lakewood.” As a matter of fact, if done right, you could probably wind up moving a lot of the beautiful Jews from Lakewood to Eretz Ha’Kodesh!!

Let me give you just one example. The city is called Emanuel. It is located in the Shomron and it is a 100% Haredi city. Currently, there are 1,100 families living there, of which 350 are Chassidishe families from Slonim, Lubavitch, Mozitz, Karlin, Zvil, Alexander, Lelov, Strikow and even Vizhnitz. As you read these words, 300 apartments are being built for Bianer Chassidim, and there’s plenty of room for thousands more! These Bianer Chassidim will also be building a Beis Midrash plus a yeshiva ketana and – when those diamonds grow up – a yeshiva gedola as well. Emanuel has room for a total of 13,000 families! Finally, if the Vizhnitz Rebbe – or any Chassidic Rebbe – is looking for a good financial deal for his chassidim, that same $500,000 that they are prepared to spend in Lakewood, NJ, would build them a gorgeous villa in Emanuel! In addition to the nice house, they can all have a garden where fruit trees can be planted. These fruit trees will have the mitzvot of Teruma, Ma’aser and Shemittah attached to them! Sorry Lakewood, but even a tree that grows in the middle of the big yeshiva there, does not have the kedusha of one leaf of an Emanuel lemon tree.

The message is clear. We need to build affordable housing for Vizhnitz chassidim. We also need to build affordable housing for NON-Vizhnitz chassidim and all of this can – and must – be done in Eretz Yisrael. There is an enormous amount of space in Israel for every Jew to come home. Do you like it warm and sunny? Forget about Miami Beach and come to the Jordan Valley. Want incredible views of hills, mountains and valleys? Yehuda and Shomron is the place for you. Want to be near water? There’s tons of space in the Galilee and on the Golan Heights – located very close to Lake Kinneret. All of these locations can come to life within a very short amount of time and for a reasonable price. Yes, Jerusalem and Ra’anana are expensive (beautiful, but expensive) but there are many other options as well.

We need to drill into our heads one simple thing: The future for Am Yisrael is in Israel, not Lakewood or any other city outside of Hashem’s chosen land. You may live in a foreign country now, but your future and the future of your children and grandchildren is in a different, very special place. Start planning that future now and with Hashem’s help you will succeed at making that dream a reality.

Am Yisrael Chai!

Shmuel Sackett

הרב חנוך אלבק: ‘פרס ישראל’ אינו ממון כשר

מתוך “המכלול” (הויקיפדיה החרדית):

חנוך אלבק (17 באוגוסט 1890 – 9 בינואר 1972) היה פרופסור באוניברסיטה העברית בירושלים, מגדולי החוקרים של המשנה והתלמוד וממייסדי השיטות המדעיות החדשות בחקר המשנה.

זכה בפרס הרב קוק לספרות תורנית לשנים תש”ג-תש”ד.

בשנת 1957 סירב לקבל את פרס ישראל, והסביר: “א) ריבוי הפרסים במדינה וחלוקתם לכל מיני אנשים ונשים מורידים את ערכם לפחות מכשיעור הראוי להתכבד. ב) המסים הכבדים המוטלים על הציבור אינם מצדיקים לדעתי את השימוש בהם לצרכים מפוקפקים כאלה, וחוששני ליהנות מכסף זה.”

ב-1959 נבחר לחבר האקדמיה הלאומית הישראלית למדעים. ב-1969 זכה בפרס ביאליק לחכמת ישראל על ספרו “מבוא לתלמודים”[2].

מחיבוריו

אלבק, שהיה יהודי אורתודוקסי, חיבר ספרים רבים בעברית ובגרמנית על ספרות חז”ל, בהם: “מבוא למשנה”, “מחקרים בברייתא ובתוספתא” ו”מבוא לתלמודים”. כמו כן פרסם מאמרים רבים בכתב העת “תרביץ“. אלבק עסק גם בההדרה. הוא ההדיר את מדרש “בראשית רבתי” לר’ משה הדרשן (ירושלים 1940) ואת “ספר האשכול” לראב”ד השני, עבודה שאביו התחיל לפניו. אלבק תרגם, ערך והשלים את חיבורו של יום-טוב ליפמן צונץ “הדרשות בישראל”, וכן השלים את המהדורה המדעית לבראשית רבה של יהודה תיאודור.

ניתן לראות את השאר כאן.

What Rabbi A.Y. Kook Said About the Chevron Yeshiva Dress (In Eretz Hakodesh, Anyway)

Covid-19-Why did they die?

Toras Aba- The Torah Matzav

DAF HASHAVUA
Shabbos 55 a&b

אמר ר’ אמי אין מיתה בלא חטא ואין יסורין בלא עון (ע”א (ותיובתא דר’ אמי תיובתא (ע”ב)

Perhaps, according to ר’ אמי, we would have to investigate why even these צדיקים וגדולים died, so we should refrain from doing the same sins they did.

Since the מסקנת הגמרא argues on ר’ אמי and holds that Man can die without having any sins, we have to assume on each and everyone who dies that he died without sin and we have no right to ask why did he die.

After the 1929 massacre of the Chevron Yeshiva R.A.Y. Kook Zt”l said that perhaps it happened because the Bachurim didn’t dress and look like Yeshiva Bachurim should look like. They were clean-shaven, fancy hairstyles, light color short jackets, and modern hats.

The Mirrer Mashgiach R Yeruchem Levovitz Zt”l angrily protested against finding faults of others and claimed this to be עצת היצר and waste of the cause. Doing so won’t cause anyone to do Teshuva.
We need to look only at our own faults and this way we can do Teshuva.

המשגיח הנערץ של ישיבת ‘מיר’ הגאון רֶבּ’ ירוחם ליבוביץ סבר שמנהג זה של לתלות את הסיבה של האסון בעוון כזה או אחר של הזולת, היא עצת היצר הרע ופספוס המטרה, ולכן אין להאשים אחרים, כיון שאף אחד לא יחזור בתשובה.. אלא על כל אחד להאשים את עצמו וכך עם ישראל ישוב לאביו שבשמים!

From Toras Aba, here.