Thursday, December 4, 2008

Another reason for not to bail out

As seen on Yahoo, Laura Rowley Money & Happiness.

"Unintended Consequences

In a Freakonomics column earlier this year in the New York Times, Stephen Dubner and Steven Levitt offered a few potent examples. One study that examined the effect of the Endangered Species Act found that property owners who suspected their land might attract protected species rushed to clear-cut the trees (despite low timber prices) to avoid losing their investments.

Another study found that employment of disabled people actually fell after the Americans with Disabilities Act was adopted, because employers -- afraid they wouldn't be able to discipline or dismiss an incompetent worker who happened to be disabled -- stopped hiring them altogether. This isn't to say these weren't worthy laws, only that they can engender unintended results."

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