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Word Count: 698
Many economists argue that market solutions are more efficient than government agencies in providing services even when it comes to merit goods In the discussion of housing problem I would disagree with the economists view Housing is a very complicate issue that I believe it will work the best by the cooperation of market and government agencies The Canadian government has worked for many years on the housing issue but does not seem to have any adequate solutions to solve the problem The housing market unlike other industry has a dominant feature of inelastic short-run supply This characteristic of the housing market has made a great obstacle in coping with the problem In fact we may look at other countries experiences and learn how to deal with the problem effectively Canadian governments housing policy is based on the idea that everyone is entitled to decent and affordable housing Housing is a necessity and everyone needs a place to live It is for this reason that government set its goal to ensure everyone is living in housing of adequate quality at a price they can afford However the government has turned into wrong definition of decency and affordability Firstly decency is subjective according to different cultures I think that the Canadian government is setting a very high value on living environment and such a high standard may cause more difficulties in solving the problem Secondly Canadian government has continuously reduced its standard in defining affordability It was consider affordable if housing cost no more than 20 of your income Nevertheless the standard has been reduced to no more than 40 until recently Such dramatic change of the figure has made the goal become ambiguous Practically the government has tried many methods in dealing with the housing problem Housing code enforcement is a method that tries to regulate minimal conditions for rental housing However this method does not seem to work because it brings additional costs to
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