Unintended Consequences

Swiss Cheese Contracts Are Melting Down

Thu, 12 Mar 2026 10:45:00 GMT

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.

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The Perplexing Puzzle of the Social Cost of Carbon

Thu, 19 Feb 2026 12:45:00 GMT

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.

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Was Milton Friedman Wrong about the Minimum Wage?

Thu, 15 Jan 2026 11:45:00 GMT

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.

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“Make New York Like Houston?”: Housing and Induced Demand

Thu, 11 Dec 2025 11:45:00 GMT

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.

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A Nuclear Renaissance?

Thu, 13 Nov 2025 13:00:00 GMT

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.

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A Food Fight at the Bureau of Labor Statistics

Thu, 09 Oct 2025 12:00:00 GMT

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

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There’s Nothing Standard about Standard Oil: Lessons for Modern Antitrusters

Thu, 11 Sep 2025 12:00:00 GMT

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.

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Inequality: American Buy, Borrow, and Die vs. Scandinavian Wage Compression

Thu, 14 Aug 2025 12:00:00 GMT

Wealthy Americans are able to avoid taxes through an accounting strategy known as “buy, borrow, and die.” It’s why Donald Trump is able to pay as little as $0 in federal income taxes some years. But, as Peter and Paul discuss, it turns out that the strategy might work differently than researchers used to think.

Then, in the second half of the show, they discuss a surprising finding about income equality in Scandanavia, which isn’t a product of any of popular progressive redistribution policies like welfare benefits or parental leave. Rather, it’s because of significant wage compression and reduced income for highly educated workers.

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Is Public Funding Actually Bad for Public Media?

Fri, 11 Jul 2025 14:42:09 GMT

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.

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Is YouTube Good or Bad? The Perils and Promise of ‘Free’ Information

Thu, 12 Jun 2025 12:00:00 GMT

Every minute, over 500 hours of content are uploaded to YouTube. Some of those videos likely infringe on existing intellectual property rights. In his Regulation cover article, law professor Jonathan Barnett argues that protections for intellectual property, including on platforms like YouTube, have become too weakened. That has resulted in a massive redistribution of wealth from IP holders to online platforms and users. Yet by lowering the functional costs of sharing ideas and data, the internet has generated an explosion in creativity, which is ostensibly the purpose of granting IP rights in the first place. Join Peter and Paul as they discuss whether there’s an optimal degree of strictness for intellectual property rights.

In conjunction with Regulation Magazine Spring 2025 edition.

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PM2.5 and Decentralizing Pollution Standards

Thu, 08 May 2025 12:00:00 GMT

One of the hottest debated topics in environmental pollution policy is PM2.5, particulate matter that is so small it can bypass your respiratory system’s filters and enter your bloodstream. Everyone agrees that it’s a potential problem, but Paul and Peter discuss why a single national standard for PM2.5 might be an expensive mistake that actually hurts public health by misallocating attention and resources.

In conjunction with Regulation Magazine Spring 2025 edition.

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Trade Policy as an Act of Self-Immolation

Thu, 17 Apr 2025 12:00:00 GMT

On April 2, 2025, President Trump announced the largest tariffs in more than a century, sparking a stockmarket crash and heightening fears of a potential recession. It shouldn’t be a surprise for our listeners; one of our episodes last year covered the sweeping tariffs then being proposed by candidate Trump. But now that the tariffs are actually here, tune in as Paul and Peter discuss the likely negative effects for the US economy and American consumers. Then stick around for the second half of the episode for an update on the status of the TikTok ban.

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Congestion Pricing and VMT Taxes

Thu, 13 Mar 2025 12:00:00 GMT

New York City’s congestion pricing policy is meant to reduce traffic in Manhattan and to raise money for public transit. But it’s attracted the ire of many, including President Donald Trump. Join Paul Matzko and Peter Van Doren as they discuss what congestion pricing is, why it’s so controversial, and why it’s generally a good idea to more accurately price the use of roads.

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Who Builds the Building Code?

Thu, 13 Feb 2025 14:00:00 GMT

Should your home have a sprinkler system installed? Well, the organization likely responsible for your local building code thinks so. But mandating sprinklers in every single family home would be expensive, and this wouldn’t be the first time that regulators failed to sufficiently account for costs and tradeoffs. Join Paul Matzko and Peter Van Doren for a closer look at an organization you’ve never heard of, the International Code Council, which has significant influence on what gets built in America today.

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Jimmy Carter, the Great Deregulator

Wed, 15 Jan 2025 14:00:00 GMT

Obituaries for the late President Jimmy Carter have been filled with profuse praise for his post-presidential philanthropic work. But Carter wasn't just good once he left office; he was one of the most underrated presidents in US history. As Paul and Peter discuss, his administration enacted policies that deregulated a swath of industries from trucking to broadcasting, ultimately laying the foundation for the next several decades of American prosperity.

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A Politics of Nostalgia: Economic Policy Under Biden and Trump

Mon, 14 Oct 2024 21:19:58 GMT

There is substantial overlap between the Biden and Trump administrations on economic policy. Both presidents have favored protectionist industrial policy and higher import tariffs. Yet these policies would not only fail to return America to the economy of the early 20th century; they would harm most ordinary American workers and consumers in the attempt. In this episode, Peter and Paul discuss the incredible cost of Trump’s proposed tariff increases, the retrograde nature of Biden’s approach to the steel industry, and a surprising result from the research on universal basic income.

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Regulatory Expectations Get a Reality Check: Boeing, Chevron, and Antitrust

Mon, 12 Aug 2024 18:56:06 GMT

Theory is elegant, but even the most well-designed and well-intentioned theory of regulation may not survive the acid test of reality. First, Paul and Peter discuss the dilemma faced by federal regulators trying to address Boeing’s safety record and the risk that (in)action might push more passengers to drive instead. Then Peter offers a counterintuitive take on the Supreme Court ending Chevron deference, deflating some of the hot air from the decision’s most ardent supporters and critics. Finally, they are joined by Professor Thomas Hazlett to dig deeper into the surprising outcomes from the T-Mobile – Sprint megamerger in 2020.

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Should You Have the Right To Repair Your John Deere Tractor?

Mon, 15 Apr 2024 15:01:34 GMT

It’s tractor week at Unintended Consequences with special guest Ike Brannon, who is a Senior Fellow at the Jack Kemp Foundation, about the right to repair movement and the struggle of farmers over whether John Deere can restrict their right to tinker with their own tractors. But first, Peter and Paul talk about government restrictions on manufactured homes as well as efforts by state officials to override local opposition to upzoning. (For those interested in doing a little extra reading about how houses are shrinking, here is a deep dive from the New York Times.) And the episode ends with a surprising paper about how unions actually lower wages.

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Starter Homes, Electric Vehicles, and Poverty

Wed, 14 Feb 2024 17:32:11 GMT

Incentives matter, but they don’t care about your intentions. In this episode Paul and Peter start by talking with special guest and Truist Distinguished Professor of Economics at Winston-Salem State University Craig Richardson. He discusses how the federal government tried to prevent greedy banks from taking advantage of homebuyers but just ended up making it harder for first-time homebuyers, especially those from minority communities, to afford a house. They also discuss a review of Matthew Desmond’s book Poverty, by America, as well as efforts by the Biden administration to boost the transition to electric vehicles.

Featuring Peter Van Doren, Paul Matzko, and Craig Richardson

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Whiskey, Electricity, and Antitrust

Tue, 10 Oct 2023 13:30:00 GMT

Peter and Paul discuss three topics – adulterated whiskey, Texan electricity, and Brandeisian antitrust – with one core theme: government action under political pressure is a poor substitute for market discipline. With special guests Macy Scheck and Daniel Smith.

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Enforcing Smart Water Management Policies and Encouraging Bureaucratic Neutrality is Harder Than You Might Imagine

Mon, 24 Jul 2023 15:30:04 GMT

Is there an “optimal hypocrisy” when it comes to enforcing laws and regulations? That’s the central theme in this episode of Unintended Consequences, which covers both water policy and the neutrality of government economists.

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Railroad Profiteering and Mortgage Forbearance

Wed, 19 Apr 2023 16:29:41 GMT

In this episode of the Unintended Consequences podcast, we start by investigating whether railroads are making excessive profits by cutting back labor expenses. That’s the subject of Peter’s new paper, which is particularly timely given the reaction to the train derailment in eastern Ohio. Then, Mark Calabria joins to discuss his cover article about his time as the head of the Federal Housing Finance Agency and the steps he took to prevent a mortgage meltdown during the pandemic. Finally, Peter and Paul tackle the limits of zoning reform as a solution for runaway housing inflation.

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