San Francisco Has A Black Market for Housing. That’s as Bad as It Sounds.

The owners of three single-room occupancy (SRO) hotels in San Francisco’s Chinatown recently settled a lawsuit with the city, agreeing to pay a hefty fine of more than $800,000. Among their alleged crimes was that they “illegally converted, combined or added unauthorized housing units” to their properties.

The allegations expose something that should be humiliating for San Francisco: the development of a black market for housing.

The Student Debt Racket

The student debt crisis isn’t a natural market phenomenon; it’s the predictable result of decades of government interference. Since 1980, average tuition and fees have increased by 1,200 percent, while consumer price inflation has risen only 236 percent over the same period. This massive increase has left students and families struggling to keep up, often forcing them to take on substantial debt just to attend college.

What is Economics and What Makes a Good Economist?

Economics, at its core, is the study of cause-and-effect relationships—analyzing how scarce resources, which have alternative uses, are allocated. Individuals respond to incentives, costs, and opportunity costs based on the subjective value each individual places on the choices they make. It is these choices that shape the outcomes we observe in society. Thomas Sowell reminds us, “Incentives are not just monetary—they include prestige, risk, fear, power, and pleasure. People respond to all of them.”