Unintended Consequences

Handling corporate debt has long been a standardized process, but something strange has been happening with contract law in recent years. These loan agreements are like the oil that lubricates our economic engine, yet the oil is breaking down as lawyers increasingly exploit contract loopholes to pocket higher returns at the expense of investors. Paul and Peter discuss the trend as described in the paper, “Swiss Cheese Contracts: The Costs of Creative Lawyering,” (Stephen Choi et al), and why it doesn’t quite fit traditional libertarian assumptions about market efficiency. Hosted on Acast. See acast.com/privacy for more information.

Economists use something called the “social cost of carbon” to estimate the future physical and economic damages caused by climate change. Yet the final dollar cost assigned to carbon emissions fluctuates wildly: from roughly $7 under Trump to $190 under Biden! In this episode, Paul and Peter discuss the article “How Should We Value the Future?” (by Peter and David Kemp), how these numbers are generated, and how it’s not purely a product of scientific calculation but rather a profound ethical choice about intergenerational stewardship mediated by the political process. Hosted on Acast. See acast.com/privacy for more information.

As Milton Friedman thought that the weight of careful research about the negative effects of the minimum wage would lead to an overwhelming consensus among economists and ultimately end public support for the policy. It didn’t work out that way, as anyone old enough to remember the “Fight for Fifteen” movement knows. Peter and Paul discuss Richard McKenzie’s article about Friedman’s prediction, why Friedman got it wrong, and the furor over an influential 1994 study that showed no negative employment effects.In conjunction with Regulation Magazine Winter 2025 Edition. Hosted on Acast. See acast.com/privacy for more information.

You might’ve heard that building more roads to reduce traffic doesn’t really work because of induced demand, the way in which building new infrastructure simultaneously creates more demand. In this episode, Peter and Paul discuss a similar effect for housing, which could make it harder to reduce housing inflation. In addition, they examine a counterintuitive finding: the cheaper a rental housing unit is, the higher the profit margins. That is the opposite of profits for new home construction, where higher-end housing commands larger margins.In conjunction with Regulation Magazine Fall 2025 edition. Hosted on Acast. See acast.com/privacy for more information.

Four decades ago, America stopped building new nuclear power plants. Some economists have even linked that decision to the era of lost economic growth known as the “Great Stagnation.” But now demand for energy is exploding, given the need for data centers to service AI, the electrification of cars, and other energy-thirsty applications. Nuclear energy boosters have declared an incipient nuclear renaissance, but, as Peter and Paul discuss, Steve Thomas’ cover article for Regulation Magazine, “The Next Nuclear Renaissance,” questions whether a nuclear energy production boom is actually coming to a reactor near you any time soon.In conjunction with Regulation Magazine Fall 2025 edition. Hosted on Acast. See acast.com/privacy for more information.

President Trump recently fired the Commissioner of the Bureau of Labor Statistics (BLS), claiming that the downward revision of employment numbers was evidence of some kind of conspiracy to make the administration look bad. Paul and Peter unpack what it is that the BLS actually does, why it’s constantly revising its estimates, and the potential negative consequences of politicizing economic data collection.In conjunction with Regulation Magazine Fall 2025 edition Hosted on Acast. See acast.com/privacy for more information.

The standard, classroom story about the history of antitrust starts with crusading progressive activists breaking up the Standard Oil trust in 1911 to save consumers from corporate greed. But a closer look at the case shows something rather different: a story about anti-competitive rent-seeking hidden in the guise of fighting for the little guy. Peter and Paul discuss William Shughart’s Regulation article “Reappreaising Standard Oil” and then apply what they learn to contemporary antitrust cases like Epic Games v Apple.In conjunction with Regulation Magazine Summer 2025 edition. Hosted on Acast. See acast.com/privacy for more information.

The discussion reveals how wealthy Americans cleverly sidestep taxes with the 'buy, borrow, and die' strategy, raising eyebrows over income inequality perceptions. Surprisingly, Scandinavian income equality stems from wage compression, not popular progressive policies. The podcast dives into the nuances of education demand, healthcare costs, and family policies, debunking myths about their effectiveness. It also compares U.S. and Scandinavian systems while highlighting challenges to adopting similar wage strategies in America.

The Corporation for Public Broadcasting, which subsidizes National Public Radio and the Public Broadcasting Service, received half a billion dollars from the federal government each year. While budget battles over the amount of funding are routine, there are more fundamental questions at stake. Join Peter Van Doren and Paul Matzko as they dig into the surprising, partisan history of the origins of public media and the unintended consequences of government subsidies.In conjunction with Regulation Magazine Summer 2025 edition. Hosted on Acast. See acast.com/privacy for more information.

The discussion dives into the complex world of intellectual property rights, exploring how they've evolved with the rise of platforms like YouTube. It highlights the tension between protecting creators and fostering innovation while addressing the challenges posed by patent trolls. The impact of the Digital Millennium Copyright Act on content creators is also examined, emphasizing the struggle of individuals against larger corporations. Additionally, the balance of utility and entertainment on YouTube is explored, showcasing its role in skill acquisition amidst an ocean of content.