Incentives matter. A key hallmark of higher-level thinking is understanding this and understanding the true implications behind certain actions looking beyond the good intentions.
Partial list of cases in point:
- Anti vaping = pro cigarette smoking
- Minimum wage = worse labor conditions for low-wage workers
- Taxing income = less work
- Taxing capital = less investment
- Rent control = housing shortages
- Zoning = higher real estate cost & more inequality
- Drug prohibition = large profit to smugglers and gangsters
- Anti prostitution = pro pimp
- Industry regulation = protection for incumbent firms
- Prohibition on organ donation compensation = more death and suffering
- Forced recycling = environmental harm
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