Mietendeckel: In Berlin, denial of reality becomes a government principle

opinion rent cap

Renting is in the future only for the daredevil

| Reading time: 2 minutes

Olaf Gersemann

"Massive interference with the ownership of landlords"

The Berlin Senate has decided on the so-called Mietendeckel. The rents are to be frozen for five years. Dietmar Deffner in conversation with Robert Halver from Baader Bank.

The Mietendeckel becomes the symbol of Berlin crowbar policy. The red-red-green government consistently ignores the main and side effects. Economists speak of the "cobra effect": in the end, the plague is greater than before.

DThe British colonial government in India once believed that it was particularly clever: to put a stop to the cobra plague in Delhi, a bounty was put on the poison snakes. In fact, many of the animals were killed. Soon, however, many citizens were about to breed cobras purposefully, only to then be able to collect the bounty. When they realized this, the British repainted the reward. The bred cobras were released, in the end the plague was bigger than before.

Two decades ago, the German economist Horst Siebert christened the "cobra effect" of such politically-induced improvements in extermination: politics, if it is not well thought out, prepared and executed, regularly has unintended consequences. Often, the problem that is actually supposed to be solved only increases.

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However, one can accuse the British colonialists in India only narrow-mindedness – they probably just did not know it better. On the other hand, the verdict on the Berlin Senate must turn out to be much more ungracious: In the Red Town Hall you do not even want to know what you're doing. Reality denial becomes a governing principle here. "We know that this is highly controversial," said SPD Mayor Michael Müller at the launch of Mietenteckels. "But you have to endure that now."

Renting is in the future only for daredevils

The Berlin Land Constitution specifies two goals: to create and maintain "adequate" housing, especially for people on low incomes, as well as the formation of home ownership. Now nobody will be able to foresee all the main and side effects that the new crowbar policy will have.

What is certain, however, is that acquiring living space that is not used by the individual will in the future only be something of a breeze in the capital – not to mention the construction. The rental cover will thus counteract the constitutional goals. Red-red-green remains only one hope: to meet in court judges who understand of economic incentive mechanisms as little as once the British rulers in India.

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Gersemann-Olaf (t) Tenant (t) Berlin (t) Rent Increase (t) Müller (t) Michael (Berlin (t) SPD) (t) Housing Policy (t) Michael Müller (t) Crowbar Policy (t) Horst Siebert (t) Crime (t) Colonial Government (t) Cobra (t) India (t) Delhi (t) Tollkühne

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