Unintended Consequences

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.

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. Hosted on Acast. See acast.com/privacy for more information.