In yet another example of the Law of Unintended Consequences, the Consumer Product Safety Improvement Act, passed by Congress last year, threatens to bankrupt clothing thrift stores, like the Salvation Army. The LA Times reports that the law “could force thousands of clothing retailers and thrift stores to throw away trunkloads of children’s clothing.”

This is a classic example of well intentioned regulations, requiring resellers of children’s products to test for potentially hazardous materials, such as lead. The problem is that the law is written too broadly, and clothing retailers, including thrift shops, are required to comply. The Salvation Army and other small, independent retailers who cater to low-income shoppers, do not have the resources to comply with the new law. Many will be required to literally throw away clothing that could have gone to disadvantaged, poor families.

One of the best illustrations of the Law of Unintended Consequences comes from John Stossel’s Politically Incorrect Guide to Politics:

In it, he uses an ice skating rink to show that spontaneous order derives from each individual doing what is in his best interest. Using a skating expert (Brian Boitano) to try to direct all the action in the rink leads to chaos, people tripping over each other, and virtual collapse of the system.

There will always be people who come up with one reason or another for why we must let them control some aspect of our lives. Some instances will make partial sense, like this case-in an effort to protect children from toxic materials, we allowed Congress and the interest groups behind this legislation, to tell us what kind of clothing we can provide for our children. All regulations increase costs for our society, with the brunt of the burden placed on the poor. Middle and upper class families hardly notice this kind of legislation; its biggest impact will be on those who frequent thrift shops out of necessity.

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