The Adventures of Jonathan Gullible - Bastiat Institute

Local governments
raise the prices
of housing by a
multitude of zoning
laws, building codes,
and regulations
that primarily
serve to eliminate
the availability of
housing.
Ken Schoolland
Chapter 13 • Helter Shelter
Brainstorming
• How are different groups of people affected
by rent controls, building codes, and zoning?
• How does market activity punish, or reward,
business practices that are good or bad?
• How are these reversed by rent controls?
• Examples?
• Ethical issues?
Commentary
Even in a “free” society it is illegal to build your
own home, with your own hands and on your
own land, without fi rst getting permission from
the authorities. Ignore these regulations and you
will be fi ned and your home could be destroyed.
Conforming to every detail of the prescribed
regulations adds to the cost of building. Building
codes prevent innovations. This throttles the
choice of alternatives that can lead to new
building-related industries and employment
opportunities. When offi cials set these minimum
standards they are often refl ecting their own
up-market style. Low income groups often do
not require, and cannot afford, these higher
standards. They are therefore prevented from
enjoying the pride of building and owning their
own homes. At times, outdated ideas are locked
into laws and valuable new ideas are thwarted.
If governments really want their citizens to
have the availability of inexpensive housing,
they would do away with the many factors
that directly contribute to housing shortages.
Among these factors are rent control, codes and
regulations, transfer duties, taxes on building
and building repair, and the high cost of
uncompetitive public municipal services.
Offi cials often think that rules, logical or not,
are more important than personal achievement
and initiative. Enforcing the rules maintains the
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