The Iron Law of Subsidies

I continuously argue with folks in various blogs/on-line forums about the affect of subsidies on human behavior. It's amazing how often people want to stick their fingers in their ears, shake their head, and scream "No, No, No" rather than accept the truth.

And this is the truth: if you pay a non-negligible amount of money (or the equivalent in goods or services) for behavior "X" to a large enough group of people, you will see an increase in behavior "X." This is so basic, I can't believe people don't acknowledge it.

It makes no difference what behavior "X" is, or how undesirable it appears on a social or personal level. It doesn't even matter if "X" is illegal, immoral, or just plain evil. If you subsidize, i.e., pay people if "X" happens, more people do it. This holds true for organ donations, for welfare, for "free" medical care if you are uninsured, to grow corn, etc.

Accept it.