Author of "Malignant Self Love - Narcissism Revisited"
Two examples of narcissistic magical thinking:
Projection and Projective Identification - Abuser in Denial
The LOA teaches us that we are responsible for our actions and cognitions and should bear their consequences (which is a good, mature principle of action). But, it also claims that our thoughts translate into real-life events. We are, therefore, to blame for everything that is happening around us, to us and to others, merely by mutely thinking about it! This is an onerous and terrifying burden to bear. It is the exact opposite of empowerment!
The dichotomous, black and white view of the world, propagated by the LOA ("good" vs. "evil" or "bad") is considered a pathology in its own right: it is a defense mechanism known as "splitting" which characterizes early childhood (ages 6 months to 1 year) and vanishes in healthy adults.
Read more about psychological defense mechanisms (most of them, when they appear in adults, are considered entrenched pathologies):