Helping those in need can be accomplished in ways other than controlling prices.
For instance, the government can make housing more affordable by paying a fraction
of the rent for poor families. Unlike rent control, such rent subsidies do not reduce the
quantity of housing supplied and, therefore, do not lead to housing shortages. Similarly,
wage subsidies raise the living standards of the working poor without discouraging
firms from hiring them. An example of a wage subsidy is the earned income tax
credit, a government program that supplements the incomes of low-wage workers.