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Economy

Socialism always fails

There is an article coming out of Oregon Public Broadcasting that is complaining about a company that has been evicting people from rental housing, even with the nationwide eviction moratorium.

The article follows Leonardo Cruz, who they claim is being evicted from his apartment because he has a “service dog” and uses this as a springboard to launch into an attack of a management company called “Income Property Management, (IPM)” which is a for profit company that, along with other companies, manages various rental property for “Home Forward,” which is a nonprofit owner of low income housing in the Portland area.

Some of the rental properties are managed by Home Forward themselves, while others are managed by various contractors. Home Forward manages 2400 units itself, with half of the remaining units being managed by IPM. Why doesn’t Home Forward simply manage the properties themselves? The answer lies further down in the article:

“the nonprofit invests in its staff — a $20 minimum wage, pensions, comprehensive benefits” besides trying to “work with tenants and try to avoid evictions.” So why is this preventing Home Forward from managing their own properties?

The subject of the article, Leonardo Cruz, was admittedly at least six months behind on his lease. Letting people stay in your rental property without paying, while at the same time paying your employees high wages and lavish benefits is how you go out of business- nonprofit or not.

The national eviction moratorium says you can’t evict people for nonpayment. So the management company, with a tenant who hasn’t paid rent for more than half of a year, finds another reason to evict.

Demanding that companies provide people with free products while paying lavish salaries and benefits is a sure way to insolvency. Socialists never understand this economic reality, and this is why socialism has failed every single time it has been tried.

2 replies on “Socialism always fails”

Of course they need to complain about it. And when the socialist non-profit goes bankrupt and the low income folks are all kicked out of their homes after they’ve been purchased by someone who has been more responsible with their money, it’ll just be another example of those evil, heartless, capitalist oppressors keeping the honest people down.

Of course people with an economic interest will find a way around the restrictions…
I’ve read that most places, the moratorium applies to judicial evictions – so in states that allow non-judicial evictions, there is another route.

I’m surprised we haven’t heard of lawsuits against the moratorium, or are the courts so slow a lawsuit would be pointless?

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