The Role of Government in Rent Assistance: A Gen Z Perspective

With rent continually on the rise and an ever-increasing cost of living, many Americans, particularly those in the Gen Z demographic, are questioning why more isn't being done by the government to help. One common suggestion is the idea of subsidizing renters with ongoing monthly vouchers. But is this feasible, and would it even be supported by Congress?

While it is understandable that some individuals, including members of Gen Z, view the government as a source of relief, the implementation of such a policy faces significant setbacks. Even if President Biden had the intention to introduce such a measure, it would need to be passed by Congress. However, the House of Representatives holds a Republican majority, and the likelihood of even a single Republican voting in favor of something they would perceive as a 'handout' is low. This is one of the key challenges in achieving such a policy.

The reality is that rent is increasing due to broader economic factors. It is not simply a case of landlords wanting more money. The cost of owning and maintaining property has increased, which is then passed onto tenants just as it has historically been done. Additionally, landlords are only able to charge what the market can bear. Hence, if tenants are unwilling or unable to pay the increased rent, landlords would adjust the rates downward to ensure they retain tenants. In a free market system, the primary driver is supply and demand.

CCI60's assertion that certain individuals in Gen Z view the government as a source of 'free stuff' is not without merit. Some in this demographic believe they should have their financial burdens, such as car payments, fully or partially covered by the government. The case of a $745 monthly Escalade lease payment illustrates this perfectly. With the increased cost of living due to inflation, the speaker finds it unjust that they must bear the full financial burden. They propose that some relief should be provided by the Biden administration, even though they have incurred the debt themselves.

While it is reasonable to expect the government to implement policies that foster a stable and fair economy, it is also important to recognize the limits of government intervention. Providing ongoing monthly subsidies to renters would require substantial fiscal resources and would be subject to strict scrutiny and debate. Moreover, the concept of the government acting as a societal 'nanny' managing individual financial decisions fails to account for the complexities of market economies.

Critics argue that many of the current issues are not new but have been exacerbated by recent fiscal policies. For instance, the significant increase in inflation is partly attributed to governmental actions, such as the extensive money printing during President Biden’s tenure. The belief is that fiscal policies have led to an inflated money supply, which in turn drives up costs across the board. As a result, there is a strong argument that the government should implement more responsible fiscal policies to address these issues.

Furthermore, the discussion on rent and inflation cannot be divorced from the immigration question. The argument here is that the influx of immigrants, often without proper documentation, has contributed to increased demand for housing and food without a corresponding increase in supply. Bipartisan policies aimed at addressing immigration and expanding housing and food supply could offer a more sustainable solution.

In conclusion, while there are valid reasons to seek government intervention for rent and other essential expenses, it is crucial to evaluate the potential and limitations of such policies. The government's role should be to provide a stable economic environment and sound fiscal policies rather than directly relieving the financial burdens of individual citizens. Understanding these dynamics is important for any discussion on government intervention in the economy and how to best support the well-being of citizens.

Conclusion

The government has a critical role in maintaining a stable and fair economy, but it should not be seen as a source of endless financial support. Rather, it should focus on implementing sound fiscal policies and addressing market imbalances to ensure the well-being of its citizens.

References

CCI60, Rent is going up for Americans. Why is President Biden not doing something to help renters better afford to pay their rent. Perhaps subsidizing renters with ongoing monthly vouchers? [Link to article]

Biden, Joseph. Economic policies and fiscal responsibility in the United States. [Link to speech or policy document]