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Examples of unintended consequences
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26th January 2008
Later on this term I will be teaching about the Law of Unintended Consequences - an example of government failure where policies introduced with the best of intentions always have at least one and possibly many more side-effects unanticipated by the law makers. The result can be a deepening of any existing market failure. Stephen Dubner and Steve Levitt have an article in the New York Times today about Unintended Consequences - well worth reading on this aspect of government intervention.
“One year from today, a new president moves into the White House. This president will be eager to carry out any number of plans — including, surely, plans to help the segments of society that most need help. Extending a helping hand, after all, is one of the great privileges and responsibilities of the presidency. But before charging ahead with such plans, the new president might do well to first ask him- or herself the following question: What do a deaf woman in Los Angeles, a first-century Jewish sandal maker and a red-cockaded woodpecker have in common?”
The rest of the article can be found here