Coleman McCormick

🤕 Accidental Harm →

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Ways to accidentally cause negative impact, and methods for mitigating.

This piece resonated in the wake of the mess around California’s AB5 legislation, which puts limitations on classifying workers as independent contractors. The backlash to AB5 shows how it’s a case study in unintended consequences.

The modern interventionist’s view wildly overestimates how well problems are understood, and what the second- or third-order consequences of an intervention might be.

I’m reminded here of Hayek’s quote on economics (applicable to any uncertain, massively complex field):

The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.

In complicated, many-sided issues like the AB5 one, it makes sense to take small steps to react to the issue at hand (which is, admittedly, a mess and imperfect for employees). Sweeping steps like AB5 feel good and address one problem while simultaneously generating multiple others.

Topics:   risk   antifragility   economics