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Notable examples of price gouging include big increases in the cost of bottled water, gasoline, or generators during natural disasters, as well as essential medical devices like the EpiPen or medications like insulin being priced many times higher than the cost of production and distribution.

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“Price gouging is wonderful for all the reasons that letting supply equal demand is wonderful,” Cochrane argued. “How else but higher prices are we going to decide who gets the short supply?” Cochrane goes on to claim that “price gouging directs scarce resources to the people who really need them.” But when it comes to rental housing, this is patently untrue.

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Overall, rents exceed costs so dramatically that being a landlord is a notoriously great way to become a billionaire. Renting out housing is widely promoted as a passive income “wealth-building powerhouse.” Or, as one landlord put it, “Bank buys me the house. Tenants pay off the loan. Property manager handles everything. I collect cash every month. Inflation builds me massive wealth.”

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