The rent's too damn high
Let us attempt, at least, to make the argument for technocracy. There really are problems that government should be trying to solve. We all also know that politics itself is not driven by anything so mundane as facts and or logic. So, there’s a case for taking the really bright people and putting them into those technocratic offices. The ones where we all agree there’s a problem to be solved. We can then insulate them from those political winds and leave them be to, well, solve those specific problems.
We all agree that unaearned concentrations of economic power are a bad thing, monopolies can be turned to ripping off consumers and so on. So, let’s put the Rolls Royce minds into the anti-monopoly body.
OK, sounds like a plan.
Today, the FTC and Department of Justice took action to fight algorithmic collusion in the residential housing market. The agencies filed a joint legal brief explaining that price fixing through an algorithm is still price fixing. The brief highlights key aspects of competition law important for businesses in every industry: (1) you can’t use an algorithm to evade the law banning price-fixing agreements, and (2) an agreement to use shared pricing recommendations, lists, calculations, or algorithms can still be unlawful even where co-conspirators retain some pricing discretion or cheat on the agreement.
The agencies’ work in this space is especially important given rising residential housing rental prices. Rent is up nearly 20% since 2020, with the largest increases concentrated on lower- and middle-tier apartments rented by lower-income consumers. About half of renters now pay more than 30% of their income in rent and utilities, and rising shelter costs were responsible for over two-thirds of January inflation.
Well, hmm. Landlords using a computer program to work out what the rent should be doesn’t sound like collusion to us. Sounds like the gathering of market information rather. You know, bringing clarity and information to that market.
But, you know, Rolls Royce minds and all that and we’ve never been picked to be in the FTC so obviously they’re brighter than we are.
Except this has been a piece of political agitation in the US for some time now. Progressive activists have been banging the drum about it. Rents are going up and of course it cannot, possibly, be that progressive policy is wrong in any manner and therefore it must be capitalist collusion. QED.
That is, this investigation into, reminder about, algorithmic collusion is an intensely political act. The very thing we were insisting we were going to protect the technocrats from, right?
Something we can prove too. The inflation claim of 20%. OK, but how’s that compared with general ubran inflation over the same time period? Oh, it’s a couple of percentage points lower you say? Really?
Real rents have fallen but the FTC is having an investigation as a result of political whining. So, doesn’t that just kill the idea that we’ve a technocracy doing technocratic stuff rather than bowing to the winds of politics. Which gives us our lesson. That technocracy isn’t even possible, it will always be subject to those political winds. So if it’s not a system that is even possible let’s not try to do it then, right?