Five related thoughts to disturb your sleep

Thinking from first principles, often overlooked.

1.  Overregulation and government interference in the free market raises costs, particularly infrastructure costs.  

2.  Regulation delays large capital infrastructure projects, pushing them further into the future.  

3.  Inflation leads Central Banks to increase the real interest rate.

4.  Higher real interest rates shorten the time horizon for investments.

5.  A shorter investment time horizons disproportionately disadvantages longer term capital infrastructure investments.  

Due to bad regulation and to bad monetary policy, capital infrastructure costs rise, fewer capital projects are originated, leading to a worsening life quality and lower productivity for everyone.