The United States of America is a special place built upon true principles of freedom that are unlike nay other place in the history of the world. The history of the world shows a long record of aspiring men, or inherited dynasties taking control and governing other men. Freedom is found in law. Law provides a foundation where man cannot rule at there will and whim but instead by a established law given by the population or the people.

Part of the purpose of having laws is to allow a atmosphere are condition where men are free to make rational transactions that almost always, in the end, benefit both parties. When this condition is created, then the natural laws of nature in reality govern and the best outcome will take place. Meaning no other system, other than freedom of market transactions, allows for a more beneficial or efficient outcome. For example, anyone in a free market is allowed to start building auto mobiles. The fact that anyone is allowed to start building auto mobiles makes it so winners and losers are not chosen by rule of man or some ruling dictator. The different auto mobile makers will compete with each other and continue to improve their products and also come up with better ways to build them. The automobile will then be sold to anyone who is willing to by it at the price it is offered at on the market. Both the seller and the buyer are happy in a free market as no one was compelled to do anything against their will and both received a decent amount of utility or benefit from the transaction.

The same principles apply to the housing market. A builder will build a family sized home, apartment, condo, cabin, etc and will then sell the different buildings to a buyer who finds personal value in the product. The buyer will not purchase the hoe in a free economy if the home is more expensive than they can afford. Housing will vary in size so that people in all standings in life will be able to find and afford a home of their class and liking. It is a beautiful system of one grown up responsible adult negotiating the right price with another responsible adult and lawfully making the transaction. This system will create an outcome of two happy parties as no one was compelled to by or sell at a specific price.

Quickly, a alternative form of market transactions can arise to fool even the smartest economist. This is a system of government buearocrats forming a regulatory council and deciding they know more than the laws of nature and the two responsible negotiating adults on what the price should be. Often the price is set to help out the poor in a community but instead everyone gets hurt as housing disappears.

When a regulator sets the price for what someone can by a house for, they will probably set the price too low causing no seller to be happy with their transaction. The seller will realize that selling is too costly, or renting to burdensome for the rent or equity they will receive and simply refuse to provide the housing. This causes a shortage in housing that hurts everyone as the poor and the rich alike can no longer find a shelter of their liking and class. The individuals that decide to actually sell the home anyways will probably just bypass the law of man and get kickbacks under the table causing a black market. That is the result of housing price controls.

Author Bio: Juhlin Youlien writes about Paradise Valley AZ homes for sale and Fountain Hills AZ homes for sale and other real estate like Scottsdale AZ homes for sale and Mesa AZ homes for sale.

Category: Real Estate
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