Inflation Pressures

Kuttner failed to mention annual rent increases demanded by landlords of residential and commercial property as a major inflationary factor. Today, practically every lease for apartments, offices, and other types of property contains a clause entitled, “Annual Cost of Living Increase.” The terms of the agreement give landlords the right to increase rent every year according to the cost-of-living index published by the government that usually ranges between 1 and 7%.

A simple exercise in mathematics should convince anyone that businesses, large and small, are compelled to increase their prices of goods and services to compensate for this upward adjustment every 12 months. Multiply the outcome of this annual increase by the number of residential and commercial tenants forced to pay this tithe, and you will obtain a staggering profit for landlords not based on principles of supply and demand.

JAMES W. THORNTON

Hollywood