The most obvious example is governments paying compensation to people who are victims of domestic violence. While this may seem quite just, fewer people remove themselves from the situation as a result. The result is greater domestic violence, and more compensation being paid.

Other examples are

• Governments paying victims of crime generally - there are people who actively associate with criminals knowing that they will be paid many thousands of dollars in compensation if they are bashed.
• Governments giving money for foreseeable property damage (bushfire, floods and so on). People would be more inclined to build outside flood zones, or build fire-resistant homes, if no such money were given.
• Drought relief. People would be more inclined to borrow less, and make themselves less vulnerable to a bad cropping year if they knew there were no government drought relief. Many farmers would also pay for their own drought insurance (expensive though it that would be).
• Paying unemployment benefits. People are less inclined to get a job if they are paid for not getting one.
• Paying single parents benefits. People are more likely to make themselves single parents if they are paid for it.

Subsidizing anything makes it more popular.

Moral hazard can be seen as manufacturing need.

See

• Welfare