Griffin Malone, Chapter 2, Question 6

Chapter two of "Naked Economics" explained the incentives of the world economy. People have good intentions in the economy but they don't always play out the way they intended. The example that stood out to me the most was about Mexico City and the pollution they emit into the atmosphere. Mexican government officials realized that there was a terrible solution problem so they implimented a law with good intentions to reduce pollution. The residents of Mexico City were not allowed to drive the car they had once a week. The residents then started buying and getting cheap second cars to drive on the day they weren't supposed to drive their normal cars therefore making the law that was supposed to reduce pollution backfire and make it increase pollution. The incentives to this economic solution were good but they didn't realize the effects it would have after it was put into action.