Sanctions Have Unintended Consequences


July 28, 2014 – Almost every action governments take, whether it’s in foreign policy, monetary policy or economic policy, there are unintended consequences. They have to be unintended because there are so many negatives that come out of these decisions you could hardly believe they do it on purpose.
I want to talk about a particular unintended consequence from our foreign policy right now. We’ve been playing games with the Russians. We’re trying to act tough. We put a sanction on here and there. But we don’t want to have Putin confiscate about $500 billion worth of American investments in that country. So it’s sort of a cat-and-mouse game, yet they’re pretty serious because they may get out of control.
Do you believe sanctions are effective?