displacement economics

Displacement economics refers to the idea that government policies or interventions in specific sectors can inadvertently harm other parts of the economy. For example, when a government offers subsidies to boost a particular industry, it might draw resources away from other industries, reducing their growth or competitiveness. Essentially, efforts to support one area can "displace" activity elsewhere, leading to unintended negative effects. This concept highlights the importance of considering the broader economic impact of policies, as well as the potential for short-term benefits to produce longer-term consequences elsewhere in the economy.