As people suffer under his inflationary policies, President Joe Biden has predictably fallen back on one of his most nonsensical talking points, and he’s dragging the entire Democratic Party along with him.
This month, Reps. Becca Balint (D-VT) and Jesús “Chuy” García (D-TX) introduced a bill that would “prohibit the use of algorithmic systems to artificially inflate the price or reduce the supply of leased or rented residential dwelling units.”
It makes sense that Democrats would want to take action on housing costs. Inflation is one of the party’s biggest weak points, and housing inflation has remained stubbornly high even as it’s cooled off in other sectors of the economy. According to a recent Federal Reserve report, nearly 20% of renters have fallen behind on rent at some point in the past year.
What doesn’t make sense is Democrats’ approach. The use of algorithmic pricing systems to help inform rent prices has nothing to do with price gouging. All these algorithms do is provide landlords with suggested prices based on existing information about the housing market. If rents were too high, the algorithm would suggest reducing them.
Balint and García’s concerns about housing supply also make very little sense. Sure, an algorithm can tell you that it doesn’t make financial sense to build a new apartment complex. But that doesn’t mean it’s the algorithm’s fault when it doesn’t get built. If Democrats want more housing, they should change the incentives, not shoot the messenger.
We know exactly why rent is breaking the bank for millions of people: inflation and supply shortages. Inflation makes everything cost more, but admitting that would force Democrats to own up to the consequences of their reckless spending.
Increasing supply is the quickest way to drive down prices, but Democrats won’t go for that either. If they loosen up zoning restrictions, they risk alienating wealthy liberal homeowners who have no problem seeing low-income people get priced out of the market as long as their own property values go up.
Nor is this legislation the brainchild of two rogue lawmakers. The “greedy landlord” talking point comes from the very top. In his 2024 State of the Union address, Biden touted his record of “cracking down on big landlords who break antitrust laws by price-fixing and driving up rents.” He has likely taken note of the reports of swing state voters being upset with his administration about these prices and feels compelled to point fingers elsewhere.
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Blame-shifting isn’t new for Biden. From food prices to energy, he’s been pulling this trick the entire time he’s been in the White House. No one fell for it in the past, and they’re not falling for it now either.
Instead of blaming everyone else for the policy areas where they’re missing the mark, Democrats should begin learning from history and adjusting their responses. It’s long overdue.
Ed Martin is the president of the Phyllis Schlafly Eagles and the Republican National Committee’s deputy policy director.