First we conquer Iceland …

posted by
March 6, 2012
by Wendy McElroy  
Posted in Commentary

"The law of unintended consequences states that actions, especially governmental ones, always have unintended and unpredictable effects. These unanticipated effects can be far more powerful than the planned ones. Thus, economists often use this law as a warning to politicians that policies commonly 'achieve' the opposite of their intentions. For example, raising the minimum wage to ease the burden on workers usually causes more unemployment, especially among marginal workers. For example, raising taxes often diminishes tax revenues. But sometimes unintended consequences are nothing short of delightful. Consider the prospect of Iceland abandoning the krona and adopting the dollar as its currency. No, no, not the U.S. Greenback but the Canadian 'loonie,' so named for the water fowl imprinted on the flipside of its one dollar coin." (03/06/12)  

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