28 September, 2004

Unintended Consequences

When laws are passed to solve a problem, people think that is great. But we don't think about the additional problems that did not exist before but now do due to the new law. This is because the elected officials often don't understand or care about the results of the law. They just want the political benefit of passing a law to solve a problem. Here is an article showing how a law passed to stop people from getting tax benefits from real estate deals set up just for tax benefits had the unintended consequence of cutting off tax benefits from legitimate deals that help build the economy.

Dennis Prager writes about the unintended consequences of our modern legal climate. By the way whenever you want to complain about the legal system, remember that most of the really stupid cases you hear about are decided by juries. We can blame the lawyers, judges, and plaintiffs all we want. But 12 (normal?) Americans made the decision. Maybe we need to educate people of the benefits of businesses instead of denigrating business every time we get the chance.

Freedom means the right to make bad decisions.

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