Second-Order Thinking

Second-order thinking means considering not just the direct consequences of a decision but the consequences of those consequences. Rent control seems good at first (lower rents), but the next effects can include fewer rentals, less maintenance, or a harder search for housing.

First-order thinking asks: "What happens if I do this?" Second-order thinking asks: "And then what?" This simple extension catches unintended consequences that routinely blindside individuals, companies, and governments who stopped their analysis one step too early.