What is the law of unintended consequences in economics?

The law of unintended consequences, often cited but rarely defined, is that actions of people, and especially of governments, always have effects that are unanticipated or “unintended.” Economists and other social scientists have heeded its power for centuries; for just as long, politicians and popular opinion have …

What are examples of unintended consequences in economics?

An unintended consequence is that suppliers of plywood from outside the region, who would have been willing to supply plywood quickly at the higher market price, are less willing to do so at the government-controlled price. Thus results a shortage of a good where it is badly needed.

What is the law of unintended consequences simple definition?

The law of unintended consequences is a frequently-observed phenomenon in which any action has results that are not part of the actor’s purpose. The superfluous consequences may or may not be foreseeable or even immediately observable and they may be beneficial, harmful or neutral in their impact.

What is Bastiat’s take on that which is seen and unseen in public policy?

Bastiat proposes that that which is not seen is often the less desirable side of the issue, and so should be examined when making laws or economic decisions. This essay holds particular weight in our current state of affairs, and should be examined for its uncovering of government spending practices.

What is the law of unintended consequences quizlet?

“Law” of Unintended Consequences. The general observation that the actions of people and governments always have effects that are not expected or intended. Sometimes these consequences are so significant, the laws can do more harm than good.

What is Merton’s law?

Merton (1936), has largely been replaced in current social science by its putative synonym, “unintended consequences.” This conflation suggests that “unintended” consequences are also “unanticipated,” effectively obscuring an interesting and real category of phenomena—consequences that are both unintended and …

What is one example of a law on unintended consequences?

1. “Three strikes” laws may actually be increasing the murder rate, and not decreasing it. 2. Seat belt laws increase the number of car accidents, and increase pedestrian and cyclist deaths.

What does unintended consequences mean in business?

Unintended consequences (sometimes called unanticipated consequences or unforeseen consequences) are outcomes of an action that are not intended or foreseen. Mostly, such consequences are undesirable. It is far too easy both in business and in international development to be armchair philosophers.

What is Bastiat’s main point regarding economics?

One of Bastiat’s most important contributions to economics was his admonition to the effect that good economic decisions can be made only by taking into account the “full picture”.

What is Bastiat’s main thesis of his writing?

The main underlying theme of Bastiat’s writings was that the free market was inherently a source of “economic harmony” among individuals, as long as government was restricted to the function of protecting the lives, liberties, and property of citizens from theft or aggression.

What are some examples of the law of unintended consequences?

Ten Examples of the Law of Unintended Consequences

  • “Three strikes” laws may actually be increasing the murder rate, and not decreasing it.
  • Seat belt laws increase the number of car accidents, and increase pedestrian and cyclist deaths.
  • Banning the insecticide DDT almost certainly has led to more deaths, not fewer.

Which of the following is an example of an unintended consequence group of answer choices?

A positive unintended consequence occurs when an action has unexpected benefits. The protection of jobs in the U.S. sugar industry is an example of an unintended consequence of the U.S. government’s restrictions of sugar importation.