[0x27081990]

>It is a market inefficiency caused by zoning density restrictions and overuse of historic landmark status which creates a politically induced artificial scarcity in housing (scarcity = rising prices).

Then it is a government inefficiency, not a market inefficiency

[davidf18]

In microeconomics is is called market inefficiency or market failure caused by special interests who influence passing laws. The terms are market inefficiency or market failure.

[Quinner]

No, https://en.wikipedia.org/wiki/Government_failure

[davidf18]

https://en.wikipedia.org/wiki/Rent-seeking

Pick up a microeconomics book and it will explain. In microeconomics market inefficiencies or market failures have 3 causes: 1) rent-seeking, 2) negative externalities, 3) information asymmetry.

As I explained somewhere else in this post, Economist David Ricardo first discussed this problem of rent-seeking about 200 years ago. In this case, the wealthy landlords work to pass laws that give them wealth paid for by society or in this case renters.

David Ricardo first discussed rent-seeking with the Corn Laws of Britain which had a tariff on all grains which increased the wealth of landowners at the cost of other members of society.

https://en.wikipedia.org/wiki/David_Ricardo#Protectionism

[pizza]

I mean, this isn't by accident. Powerful people can advocate for their interests to change laws. It's the market ad extremum. It's only government inefficiency in the sense that lawmakers are vulnerable to influence, rather than bureaucrats imposing centrally planned government programs.

[scotpb]

In a democracy the many have the upper hand, if they get involved. Blaming the few at the top seems to be a easy device frequently used today.

[__jal]

It appears you are unfamiliar with public choice theory[1]. It turns out you are correct in a theoretic sense that very rarely works out in practice. Blaming 'the many' for failing democracy might be satisfying, but doesn't do any good.

[1] https://en.wikipedia.org/wiki/Public_choice

[davidf18]

The issue is that special interests have a much more focused need for the laws (or may have more money for lobbying or "buying" politicians).

There are import tariffs on sugar that benefits sugar producers while "harming" society (and other countries that want to import sugar).

[pizza]

Plutocracies work differently.

[damnfinecoffee]

America is not a democracy