In this century the great economist Joseph Shumpeter saw the economy as a developing organism, not as a machine manipulatable by levers, as in Keynesian and neo-Keynesian economics. This usually frustrates government planners. They make a move intended to stimulate investment, but if the move involves higher taxes or more regulation, it may so darken investors' views of the future that the stimulation will be diminished. In many of its edicts, the government seems fixated on a world in which there are only single encounters between any two parties. But with multiple encounters, the payoffs change.
Government also fails to appreciate the degree to which people learn and change their behavior.
Thus the fallacy of rent control. Or to look at tax policy. Anyone smart enough to be rich is going to be smart enough to alter his behavior in ways that will compromise the goal of increased tax revenue. Tax accountants will find new ways to help their clients avoid taxes. This interaction and ability to adapt are at the heart of evolutionary economics and of game theory.