Government Intervention Markets for Farming and Rental Apartments

Government Intervention in the Markets for Farming and Rental Apartments
Student’s Name
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Government Intervention in the Markets for Farming and Rental Apartments
Most governments in the world intervene in the markets for farming and rental apartments have been adopted in many agricultural markets. The ways such governments intervene depend on the wealth of the country.
Consequences of government price supports and subsidies in U.S. farming markets
By supporting prices and subsidies in the United States farming markets, the government would encourage farmers to increase their levels of production. Consequently, for the farmers to produce more, they have to apply more inputs in their farms. Competition among them also increases as they compete for the limited amounts of farming land. Therefore, price supports result in larger productions and on the other hand smaller and decreased consumption levels. This also causes overproduction at the support price. In the end, this stimulates tax consumers and impedes foreign trade.
Do rent ceiling laws for apartments result in an efficient allocation of apartment units? Why or why not?
Rent ceiling laws for apartments result in an inefficient allocation of apartments units. Multiple results of research studies have confirmed that rent controls are indeed destructive. They not only reduce the quality of housing but also the quantity of the housing available. They are an example of poor planning by governments that do not have a vision.

Rent ceiling laws and controls divert investment which otherwise would have been used for rental or apartment housing and would benefit the consumers. As a result, the quantity of the apartments available for rent reduces.
Would the market system, absent of the above government interventions, result in a more efficient allocation in these markets?
While it would not be advisable for a complete lack of government representation in the market systems, the government should reduce restrictions so that there will be an efficient allocation in these markets. This will eliminate the possibility of rent control with amendments to the state laws that forbid such.
Reference
Harloe, M. (2008). The people’s home?: social rented housing in Europe and America. John Wiley & Sons.