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To believe in a false economic substantiation of their projects. It is easy to result
Examples of how secondary effects are not considered at all. We will consider,
For example, the state control over a rent. Defenders of this
Measures assert that the control, interfering with increase of a rent,
Does habitation more accessible to the poor. It so, but after all thus
It is impossible to avoid and secondary effects. Lower rates room
Payments will lower level of profitableness for investments into housing construction.
To owners of already existing habitation, probably, it is necessary to agree on more
The low income of its delivery it, but many of potential owners,
Having thought, will direct the means to any other sphere of economy;
Investments into housing construction will be reduced, and the habitation becomes in due course
Even less accessible. There will be a deficiency, and eventually will decrease and
Quality of handed over habitation.
However secondary effects will be noticed not at once. Therefore the control for
Rent still uses wide popularity from New York on
East coast USA to Berkeley on Western, in spite of the fact that
Inevitable results of this control are low level
Offers of habitation and poor quality of its maintenance. According to Swedish
Economist Assara Lindbeka "in many cases the control over the room
Payment it appears most effective of all known to mankind
Ways of destruction of cities, behind an exception unless bombardments ".
Supporters of import tariffs and quotas for the sake of "protection of workplaces" also not
Wish to notice secondary effects from the policy spent by them. We will consider,
For example, influence of trading restrictions which reduce the offer
Cars of foreign manufacture in the American market. As a result
Employment in domestic motor industry extends.
Let's address, however, to secondary effects in other spheres. Restrictions
Mean higher prices for cars. As a result of it those who them
Now gets, are compelled to reduce purchases of foodstuff, clothes
And other goods. This decrease in expenses means smaller release and
Employment reduction in corresponding branches.
Moreover, the secondary effect extends and on foreigners. Selling
Americans have less than cars, they receive less dollars, on which
Could buy the goods made in America. Hence, restrictions
For import of cars lead to falling of the American export.
Protectionist measures do not create workplaces, and only redistribute
Them, but it, unfortunately, is evident not at once. Therefore
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