Question

In: Economics

For this assignment, you will find 3 examples of unintended consequences in class. You may include...

For this assignment, you will find 3 examples of unintended consequences in class. You may include pictures and numbers in the assignment. Do not make it wordy, pictures and numbers are better than words.

3 examples that teacher gives us:

Assignment 1: Unintended consequences

1.

Policy: In 2016, Chinese government aimed to lower property prices by imposing heavy taxes for married couples on the sale of their second property.

Intention: This policy aims to lower housing prices.

Unintended consequences: people rush to get divorced, to avoid paying the taxes.

http://www.chinadaily.com.cn/opinion/2016-09/13/content_26779218.htm

http://world.time.com/2013/04/29/why-chinese-couples-are-divorcing-before-buying-a-home/

2.

Policy: Go Vegetarian, vegetarians advocate that we should consume less meat for better health, better environment and save animals.

Intention: This policy aims to save animals.

Unintended consequences: Millions of animals are killed every year to prepare land for growing crops. The animals in this case are mice and moles and rabbits and other creatures that are run over by tractors, or lose their habitat to make way for farming.

http://abcnews.go.com/Technology/story?id=97836&page=1

http://bitesizevegan.com/environmental-societal-impact/do-vegans-kill-more-animals-than-meat-eaters/

3.

Policy: Children are taught not to talk to strangers

Intention: By not talking to strangers, this may avoid children from coming across with criminals.

Unintended consequence: Talking to strangers can be a good survival strategy for children who are lost or in danger. A Utah cub scout, for example, remained lost in the woods for four days because he hid from search and rescue volunteers out of fear they would steal him. Warning children about strangers does not protect them much, since it is more likely that they will be abducted by someone they already know.

Solutions

Expert Solution

Policy:All Rs 500 and Rs 1000 will not remain legal tender after 8th Nov,2016.(Demonetisation)

Intention:To eradicate black money and make economy more cashless.

Unintended consequence:India's GDP growth fell by 2.1%,1.5million jobs lost and emergence of shadow economy to exchange notes.

I've taken the data from the Indian Express.

Policy:One child policy in China

Intention:The policy was formulated to tackle the problem of ever increasing population in China.

Unintended consequences:
The policy put the lives of children at risk. To avoid financially devastating fines, families who were having a second child and didn’t have an exemption would seek out abortion providers or abandon their children outright without identification. For families that wanted a boy and had a girl, this created numerous orphans and murders that were needless.

Policy:Exemption of tax on automobiles.

Intention:Making transportation affordable to every citizen.

Unintended consequence:Cheap automobiles has led to frequent traffic jams and a rise in the air pollution level.Since automobiles became cheap people started buying more cars than were required by them.


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