Thomas Sowell has written on many occasions that politicos sell their notional propositions on first stage economic consequences. James M. Buchanan spent a career explaining the politico’s self-interest and associated economic consequences. Yes, in the first stage of a politico notional proposition, one might see what appears to be positive economic consequences. How so?
In the very short run particular recipients of government largess may appear to have gained but those gains are short lived as government is nothing more than a transfer agent transferring from A to B. The pie has not grown larger, rather, the pie slices have merely been redistributed. Furthermore, the sponsors of the notional proposition focus attention on the recipients and their “gain” due to government largess (the seen). Meanwhile the unintended cascading negative consequences (the unseen) of the notional proposition begin to crop up causing a cornucopia of intervention-distortion. The notional proposition, generally an intervention that attempts to create supposed perfection merely creates an environment that magnifies serially uncorrelated errors. That "imperfection" is the entry point and "perfection" is the argument.... when in fact perfection become additional imperfection. (1)
Ok. Now what?
(3) Why your boss is dumping your wife, Market Watch, WSJ, 02/23/2013: