Question

give examples of unintended side effects of government policies.

Answer 1

Unintended side effects of any policy mean that the steps taken by the government have some unintended or unanticipated consequences or effects.

Some of the example of the same are :

• If the government imposes quota in some industry , it does help the industry in its own ways but it leaves the market with higher prices for the same good they paid earlier due to quotas.
• Social security programs help the old and needy but they are seen as a heavy burden on the taxpayers and on the economy. It is argued that if the schemes are not introduced, the economy would flourish at a much higher rate and efficiently as well.
• All the price control mechanisms that are introduced by the government are not truly accepted by the whole of the market. The unintended response from the cutting supplies by the producers or excess demand by the consumers is faced by the inefficient working of the economy.
• Some of the programs initiated by the government towards the development and infrastructure of the country leads to environmental destruction which are unanticipated before.

All these examples show the unintended side effects of the government policies.