Why is it that so many economic policies constantly fall short of their initial intended goals? In the social sciences, unintended consequences are outcomes of a purposeful action that are not intended or foreseen. The law of unintended consequences refers to how economic decisions may have effects that are unexpected. Adam Smith's “invisible hand,” is an example of a positive unintended consequence. For instance, the U.S. government has imposed quotas on imports of steel in order to protect steel companies and steelworkers from the lower-priced competition. But they also make less of the cheap steel available to U.S. automakers. As a result, the automakers have to pay more for steel than their foreign competitors do. In Korea, the towns which adopted the suicide prevention law failed to mitigate the suicide rate or even worsening it. In the state of Maharashtra India, the implementation of the family planning program resulted in strong son preference result in an adverse sex ratio in the state. Daniel Ellsberg's (1972) critique of the “quagmire model,” for U.S.catastrophic entanglement in the Vietnam War. Some Sub-Saharan African countries use agrochemicals that increased the value of harvest but are also associated with increasing costs of human illness. Economic effects of 1929 U.S. Prohibition were largely negative, eliminated thousands of jobs, with one of the unintended economic consequences of Prohibition, was on decreasing government tax revenues. 2010 U. S. Dodd-Frank Act discouraging companies from sourcing 'conflict minerals' from the eastern Democratic Republic of the Congo increased the probability of infant deaths in villages near the regulated ‘conflict mineral’ deposits by at least 143 percent. The law of unintended consequences rarely defined, is that actions of people (especially of government) always have effects that are unintended. In 1692 the English philosopher John Locke urged a parliamentary bill designed to cut the interest from 6 percent to 4 percent that instead of benefiting borrowers, as intended, it would hurt them. French economic journalist Frederic Bastiat distinguished the seen were the obviously visible consequences of an action or policy. The unseen were the less obvious unintended, consequences. In 1936 by the American sociologist, Robert K. Merton recognized five sources of unanticipated consequences. I am adding the sixth source and refer to it as the Effect. The Coriolis force, named after French mathematician Gaspard Gustave de Coriolis (1792–1843). In 1835, Coriolis derived the expression of a force acting in rotating systems, now known as the Coriolis force. Scientists have invented an imaginary clockwise circulation force, called the Coriolis force, to account for the Coriolis effect. In the 1870s, a handful of committed economists hoped to make economics a science as highly regarded as physics applied by Newton’s physical laws of motion to economic science. When Newton's laws are modified to a rotating frame of reference, the Coriolis and moving or tending to move away from a center increase in speeds appear. The Coriolis force minutely changes the direction of a bullet, affecting accuracy at, particularly long distances. At the gridline of Sacramento, California, a 1,000 yd (910 m) northward shot would be deflected 2.8 in (71 mm) to the right. Negative unintended consequences repeatedly become visible when a simple regulation is imposed on a complex system. Given the complexity of physical, social, and economic systems, negative unintended consequences are likely to come out and to be notable. Thus, policymakers should also be aware of the “Coriolis Force” phenomenon while calculating their economic policies due to Force could deflect the direction of intended policy to unwanted and unpredicted results for the economy.
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Sep 25, 2019
Nithin Kumar + 11
Open Access
