reply to discussion
Can government intervention in markets sometimes make the situation worse?
If a market fails, it is when the competitive price system fails to allocate resources efficiently. The government could fail and make the situation worse by making decisions for short-term political consideration that leads to an inefficient outcome. A lack of incentives can be an issue by leading to inefficient production because it is not seen by the public sector. The impact on personal freedom can also make the situation worse because the changes made to reduce congestion, improve health programs, can change the taxes and behavioral influences and regulation. This can sometimes be the cause of people feeling overbearing on their individual choice. An example would be that the government provision may reduce the choice of individuals who prefer to make their own choices of doctors. This can also lead to health care requiring higher tax rates (Pettinger, 2019). If the government is influenced by powerful pressure groups, disincentive effects of welfare programs and poor information or time lags from the government can also make the situation worse.
(Pettinger, 2019) Pros and Cons of Government Intervention. https://www.economicshelp.org/blog/151818/economics/pros-and-cons-of-government-intervention/