Because a fine is supposed to be a deterrent, six Israeli day-care centers were surprised when their late pickup fee had unintended consequences.…
Where Retaliatory Tariffs Create Unintended Consequences
It will be rather complicated when retaliatory agricultural tariffs, aluminum protection, and crop payment supports all hit New Madrid County, Missouri.…
The FDA’s Label Problem
When their requirements are outdated or illogical, FDA guidelines can create misleading labels for foods like eggs and skim milk.…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.…