4. Unintended Consequences
Prof. Don Boudreaux explains what economists mean when they talk about unintended consequences. Essentially, unintended consequences are the large outcomes that emerge from the actions of many individuals. These outcomes can be good or bad. When analyzing various polices, we must be extremely careful to distinguish between intentions and results.
- Unintended Consequences [Article]: Rob Norton provides a basic overview of the unintended consequences that arise from all human action.
- Unintended Consequences [Article]: Steven Horwitz examines the concept of unintended consequences by looking at different institutions and their respective effects on uncertainty.
- Welfare State's Effect on Private Charitable Activity [Video]: Milton Friedman sheds light on the unitended consequences of governmental welfare programs.
- Minimum Wage [Video]: Milton Friedman demonstrates the undesirable consequences that result from well-intentioned minimum wage rates.
Use these questions to enhance your understanding of the topic. We recommend watching the featured video first; the suggested resources will also help.