Tag Archives: unintended consequences

The Global Distortions of Doom Part 1: Hyper-Indebted Zombie Corporations

It’s funny how unintended consequences so rarely turn out to be good. The intended consequences of central banks’ unprecedented tsunami of stimulus (quantitative easing, super-low interest rates and easy credit / abundant liquidity) over the past decade were: 1. Save the banks by … Continue reading

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The Unintended Consequences of the $15/Hour Minimum Wage

For many, the most direct way of increasing the income of low-wage workers is to raise the minimum wage significantly. Many high-cost states have already passed legislation to raise the minimum wage to $15/hour. Despite the official claims that inflation … Continue reading

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The Destroyer of Fake “Recoveries”: Unintended Consequences

Destroy the market’s ability to price assets, risk and credit, and you take away the essential information participants need to make rational, informed decisions. A correspondent recently summarized why unintended consequences eventually destroy all politically expedient strategies that temporarily prop … Continue reading

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