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by Joe Calhoun

Two segments: (1) Remember those secondary effects, the unintended consequences of government intervention we've been talking about? Beth's uncle’s choice is another good example. But the secondary effects we saw in the video show the frailty of human nature often comes into play, as Uncle Stan is essentially asking “Why work when you can collect a check and still do your own thing?” Uncle Stan didn’t set out to cheat, but the alignment of incentives has allowed him to figure out at least one way to effectively game the system; (2) Unemployment benefits are meant to help people pay their bills while they seek a new job. That's a laudable goal. But secondary effects often come into play, especially given the frailty of human nature.


Two segments: (1) Beth has lunch with her uncle and learns about unemployment; (2) Professor Macy explains the key points in Module 10 about government transfers and unintended consequences.

from Module 10 Slice of Life, Module 10 Professor explanation; combination (2014)
Creator: Common Sense Education International & the Florida State University Stavros Center for Economic Education
Posted by Joe Calhoun