1. There are federal and state laws setting minimum wages1 for workers. There are also city laws setting price ceilings for housing rents2.
a. Why are there laws setting minimum wages for workers and maximum rents for housing?
Minimum wage laws were created in order to provide unskilled employees with a living wage. The laws were intended to reduce poverty, and increase the standards of living for workers. It places a limit on the minimum that employers are legally allowed to pay workers.
Rent control laws are set to place an upper limit on the amount that can be charged for a unit. The landlords are only allowed to charge the tenant up to a certain amount which is intended to eliminate the possibility of landlords exploiting their tenants by charging excessive rents and to create a fair market.
b. Why are there no laws setting maximum wages for workers or minimum rents for housing?
Imposing maximum wage limits would be detrimental to innovation, and limit motivation among employees. Furthermore, it would be devastating to the economy potentially putting a number of companies out of business. Those who earn high salaries are enabled to purchase high-end luxury items such as Rolex watches, Porsche automobiles, Multi-million dollar estates, etc. To place a limit on the earning potential for employees would decrease their purchasing power and reduce their spending on luxury items. In turn this could result in businesses closing, loss of jobs, reduced taxes paid into our government, and over...