When their requirements are outdated or illogical, FDA guidelines can create misleading labels for foods like eggs and skim milk.…
How a Chinese Smartphone Could Be Made in America
When the U.S. proclaimed a seven-year ban on doing business with China’s ZTE, the stock price of Acacia Communications plunged: We could say the butterfly effect kicked in. Initially academic, t…
What a Strawberry and a Chicken Say About Free Trade
More than governments negotiating agreements, free trade is about the variety of strawberries, chickens, pickup trucks and pencils that we can buy.…
The Unintended Consequences of Airline Taxes
When government increases airline taxes and fees, it can create unintended consequences for travelers who blame the airlines for fare hikes.…
Why China’s Scientists Got the Wrong Message
In 2016 it appeared that China had become a research powerhouse. In 2017 they discovered a problem. This is the story of how incentives can have unintended consequences. Chinese R&D In 2016, the n…
Why Flood Insurance Creates Unintended Consequences
Flooding 34 times in 32 years, a $69,000 home in Mississippi received close to $663,000 in payouts. Similarly, for 16 floods in 18 years the owners of a Houston home valued at $115,000 got $800,000. T…
The Surprising Consequences of Taxing Bagels and Windows
By changing our homes and our cream cheese purchases, taxes on bagels and windows can have unintended consequences when they distort our behavior.…
What Pets Can Teach Us About Healthcare Spending
We cannot avoid unintended consequences from healthcare legislation because healthcare spending has no “one-size-fits-all” solution.…
The Revenge of the Smartphone
When technology bites back, it forces us to recognize that all new things can have unintended consequences that offset the benefits of innovation.…
How a Chicken Helped a Pickup Truck
When German farmers got a chicken tax to protect them from U.S. poultry imports in the 1960s, the results were unexpected.…