Category: Unintended consequences

Student Loan Bubble & Moral Hazard

The insurance industry is unique in that its product tends to incentivize the very behavior people seek to protect themselves from. This is called “moral hazard.” For example, all things being equal, someone with collision insurance will tend to drive more recklessly than someone with no coverage. Someone with flood insurance will deliberately build their […]

June 25 / 2014
Author Greg Morin
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Health of the State

The War on Drugs is perhaps the most unjust “war” ever waged. It is not, as in conventional warfare, a conflict between states, but rather a conflict of a parasite (the state) against its host (the people). Just as cancer grows by attacking its host, so too does state power expand as it attacks its […]

Who is the customer?

Outsourcing, public-private partnership – this is the Trojan horse of the political entrepreneur that will fool the political class every time into believing salvation from inefficient government lies within. For those familiar with how markets are actually supposed to function, the irony is clear: only harm shall spring forth. One of the more insidious “partnerships” […]

Unionvergnügen

In the words of Bob King, President of the United Autoworkers Union (UAW), the UAW has no long-term future if they cannot expand their membership into Southern auto plants. And it looks like that day may come sooner than anyone expected: workers at the Volkswagen plant in Tennessee recently voted by a margin of 53-47% […]

February 18 / 2014

Risky Business

When Nancy Pelosi said “we have to pass the bill so that you can find out what’s in it” she wasn’t kidding! Four years later the adventure into this 906-page behemoth continues. Apparently taxpayer funded bailouts of insurer losses is one little tidbit they tried to sweep under the rug. This provision is part of the […]

January 28 / 2014

Ignore the Cause and Suffer the Effects

The Washington Post recently published  a retrospective account of the deaths of 91 children in 2012 to highlight the one year anniversary of the senseless shooting rampage at Sandy Hook Elementary in Connecticut in December 2012. Clearly this article was intended to strike an emotional chord that would resonate with any sane person. The media […]

December 16 / 2013

Obamacare Kills the Family Farm

Obamacare is poised to put the family farm out of business. Although not directly applicable to the food industry, it has spawned sibling legislation whose ends are aligned with the Obamacare mandate of lowering health care costs for the nation – by any means necessary. Toward that end the “Food Safety and Modernization Act” was […]

Where’s the beef? Sorry, it’s been banned.

This past week the FDA proposed an outright ban on artificial trans fats in prepared foods.  Trans fats occur naturally and artificial ones have been used for decades in foods. As a foodstuff they are safe insofar as they don’t make you sick upon ingestion and have known physiological benefits in proper amounts (and known […]

November 12 / 2013

Changing the Rules of the Game

September 1 will mark the end of an era, at least in Georgia anyway. This is the date that Amazon.com must begin collecting sales tax in Georgia. Some day you will wax nostalgic and regale your grandchildren with stories of how there was once a place where people could escape the clutches of intrusive government: […]

August 14 / 2013

Rage against the machine

Imagine that you are a pioneer of the old west. Over many years you have worked hard to establish a home and a farm. Now imagine that a marauding gang of thieves has begun to harass you. They destroy your crops. They threaten your safety in order to extort money from you. When you are […]