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Definition of the law of unintended consequences

Alex Tabarrok posts the best short definition of the law of unintended consequences I’ve seen:

The law of unintended consequences is what happens when a simple system tries to regulate a complex system.


3 Comments

Wow. That’s a fascinating definition. It certainly seems to apply whenever government at any level attempts to mess with the free market. :)

Posted by Duff on 24 January 2008 @ 3pm

The thing is though that it’s not government that wants to mess with the free market, it’s people who want to mess with the free market, and government is one means by which people do so.

Markets do not necessarily want to be free.

Posted by Rafe on 24 January 2008 @ 3pm

Yes, it’s interesting that most all economics really is ‘theory’. For all his faults, in Greenspan’s book, even he refers to a lawless market not as the ‘free market’, but as a ‘black market’.

And despite this complexity of the economic of the market, you find people who wish to impose a simple ‘flat’ tax.

Posted by Quillian on 24 January 2008 @ 11pm

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