The law of unintended consequences

Question 1

What does the law of unintended consequences say ?

Answer 1

This says that any government intervention always has some unintended consequences

Question 2

What is one example of the law of unintended consequences taking place ?

Answer 2

The government set up speed bumps to slow down the traffic and reduce collusions within driving. However, the unintended consequences which occurred from this was that it slowed down ambulances in emergency times and would affect those who are in need in a life or death situation. External costs are created

Question 3

What is another example of the Law of unintended consequences taking place ?

Answer 3

In india 1930s, delhi was infested with deadly cobras who caused problems to the locals. The government intervened with a money reward for every person who killed a snake and Brough it to them. However, the locals instead breaded their own cobras and killed them instead. The government find out eventually and stopped the reward system. This left the locals with many unneeded cobras. They then released these cobras into the cities again. This intervention lead to more snakes being in the city rather than less.

Question 4

What is a third example of the law of unintended consequences taking place ?

Answer 4

Another example is in the black market. The Uk had made cannabis illegal. However, this increased the consumption of cannabis as they were then sold illegally by dealers which can further lead to more problems. The illegalisation instead lead to an increase on supply of cannabis and an increase in negative externalities.

Another example of this is the taxing of cigarettes. This instead lead to private sellers selling these cigarettes for way cheaper. This interventionn instead lead to an increase in supply.