Where Credit Is Due

A hallmark of state failure is its incapacity to predict the market’s response to the policies it puts forth. Indeed, on many levels the state is powerless to change the market’s ends, instead only serving to redirect its means.

via The Unforeseen Consequences of Credit Legislation – Jeremiah Dyke – Mises Institute.

The quoted article is about the new laws regarding credit cards and it’s consequence of harming the very people the laws were intended to protect. We’re seeing a similar thing with banking – a local bank recently abolished “free checking” and now levies monthly fees. The reason? Congress passed new laws to keep people from being ripped off. Hmmm.

Unintended consequences are almost guaranteed when people don’t think it through. Companies will try to maximize their profits and this requires benefiting their customers in the best way possible. All government can do is reduce the benefits that customer receive – companies will still try to maximize their profits. There’s only one loser in most of these “reforms” – the public!


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