Unintended Consequences

Summary


Unfortunately, President Obama does not understand the basic laws of physics. Isaac Newton's third law of motion states that for every action there's an equal and opposite reaction. Nor does Mr. Obama understand the basic principles of economics, including the law of unintended consequences and creating a "moral hazard." A moral hazard is created when a person behaves differently from how he would have if he had to bear the risks of his behavior.

Every time Mr. Obama attempts to repair a problem by government intervention, he creates a more serious problem. An example of the law of unintended consequences is the president's attempt to solve the financial crises by increasing the regulation of the American financial system.

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Extract


Unintended Consequences

These attempts over time "to fix and regulate" the financial markets have resulted in the loss of U.S. dominance in the financial sector. The most recent egregious example of this loss is the potential German acquisition of the iconic New York Sto...

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