In this episode, we first travel seven hundred years to the Mali Empire in West Africa. Mansa Musa, the ninth ruler of the Mali Empire, is the protagonist of our episode. In 1324, as a devout Muslim, Mansa Musa embarked on a pilgrimage to Mecca. On his way, he spent and gave away so much gold in Cairo that his actions disrupted the gold market's value there for at least 12 years.

His good deeds in foreign lands are among the first examples in History of how an altruistic idea can lead to adverse, unintended consequences. There are examples in our world today, particularly in foreign aid, where the generosity of wealthy nations and international organizations can have adverse effects on the impoverished communities they aim to help.

We will discuss this further at the end of the episode, after covering the events related to Mansa Musa. We will also discuss the California Gold Rush of the 19th century, as it will help us understand how a sudden influx of gold can create inflation, similar to what happened in Cairo in 1324.

Mansa Musa's generosity, the California Gold Rush, inflation, and foreign aid are the recipe ingredients for today's episode of The Cobra Effect Podcast.

For a full list of sources and other relevant links, please see the Full Transcript of this episode.

Support the show

Thank you for listening. For additional information and social media links, you can visit https://www.thecobraeffectpodcast.com

You can support the show on Buy Me a Coffee or become a monthly member. Links on the website. You help me to cover my costs, and your contribution keeps this project going.

Feel free to reach out via social media or email. The email address is contact@thecobraeffectpodcast.com

I would appreciate hearing your questions, comments, or suggestions for future topics. See you in two weeks for another episode of The Cobra Effect Podcast.

In this episode, we first travel more than 100 years to the city of Delhi, in India.

The British colonial government decided to eliminate the overpopulation of cobras slithering around and put a bounty on each of them. The economic incentive initially worked well. However, the authorities did not foresee other subsequent events... Based on this story, in 2002, the German economist Horst Siebert coined the term “cobra effect” to describe cases of unintended consequences when the proposed solution backfires, making the problem worse. Hence, the title of this podcast!

Today, we will also discuss two other cases of "cobra effects" in Vietnam and Brazil related to rats.

These examples illustrate how unintended consequences transform good intentions into bad policies. From ancient Mesopotamia to current world events, The Cobra Effect Podcast explores the unintended consequences of government policies, including taxation, price and wage controls, foreign aid, collectivization, environmental issues, and more. Four millennia of history on all continents demonstrate that we repeat the mistakes of the past when judging ideas by intentions rather than results.

Sources:

1- Cobras

https://www.amazon.com/Kobra-Effekt-Irrwege-Wirtschaftspolitik-vermeidet/dp/3421056781

https://fee.org/articles/the-cobra-effect-lessons-in-unintended-consequences/

https://freakonomics.com/podcast/the-cobra-effect-2/

2- Rats in Vietnam

https://www.hanoivietnam.fr/le-massacre-des-rats-de-hanoi-en-1902/

https://madeinchinajournal.com/2020/08/20/the-great-hanoi-rat-hunt/

https://www.jstor.org/stable/41299413?typeAccessWorkflow=login

https://www.jstor.org/stable/41938159?typeAccessWorkflow=login

3- Rats in Brazil

https://revistapesquisa.fapesp.br/en/war-on-the-plague/

https://agenciabrasil.ebc.com.br/en/https%3A//agenciabrasil.ebc.com.br/en/node/1474734

https://oswaldocruz.fiocruz.br/index.php/en/biography/scientific-career/general-directorate-of-public-health/the-campaign-against-the-bubonic-plague

Bastiat’s essay: https://oll.libertyfund.org/page/wswns

Support the show

Thank you for listening. For additional information and social media links, you can visit https://www.thecobraeffectpodcast.com

You can support the show on Buy Me a Coffee or become a monthly member. Links on the website. You help me to cover my costs, and your contribution keeps this project going.

Feel free to reach out via social media or email. The email address is contact@thecobraeffectpodcast.com

I would appreciate hearing your questions, comments, or suggestions for future topics. See you in two weeks for another episode of The Cobra Effect Podcast.