Humans act with purpose, and generally in ways that make their lives easier. Because people respond to incentives, your behavior with change when the benefits and costs to you change. The law of unintended consequences follows axiomatically. Unforeseen issues arise when a few people attempt to regulate a complex system. Collective decisions are flawed because of limited knowledge, small timeframes, poor feedback, and inconsistence incentives. Regulation pushes against incentives, and incentives push back.
Two common instances where the law of unintended consequences had a big (negative) effect:
- Mandatory seatbelt laws - though this law was intended to make drivers, and thus our roads, safer has actually increased reckless driving.
- The disability act - this act was passed with the intent of hindering discrimination against disabled people in the workplace. Instead, companies are fearful of being sued for unfair termination of employment of a disable person that they simply don't hire people with disabilities at all.
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