A politician might want to correct an economic problem with a law or policy, often with good intentions. With the study of equilibrium theory, we can tease apart the subsequent order consequences of any interaction. Analysing the complex economic interdependencies shows how good intentions can have bad results. Virtually no transaction occurs in isolation - this often goes unnoticed by those who think of designing “solutions” for particular “problems”.

For example, if a politician wishes to lower the interest rate on loans, placing a ceiling on the interest reduces the number of loans and the demographic of recipients. This shift naturally disqualifies lower-income people. There are other myriad effects, such as the price of corporate bonds and the known reserves of natural resources.