Thursday, November 03, 2005

Tough Choices

. . .the very day that the governor lifted the moratorium on evictions, her
landlord presented her with an eviction notice. The reason? Failure to pay
September's rent. The Smiths, like everyone else in the city, had been forced to
evacuate. . .
Ms. Smith is determined to fight the eviction, and local
lawyers have come to her aid. But the real reason for the eviction notice is
that houses that didn't flood are at a premium and her landlord, like many
others, is eager to cash in.

Housing is at a premium now and can demand higher prices, homebuilders will flock to the area to cash in on the larger than normal profits to be made. In this scenario some people will be hurt in the short term, but prices will come down quickly as new housing is constructed (by the greedy eager to cash in on human misery).

Or we can fix prices at pre-disaster rates, ensuring that the incentive for new construction stays at pre-disaster levels despite the now greater demand. In this scenario a few of people benifit in the short term, but a lot are screwed in the long (by the greedy not so eager to cash in on human misery if there isn't any cash to actually be had).

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