Govt intervention hurts economic efficiency

Both the government and the market have their own unique troubleshooting capabilities, but there is potential of tremendous harm if they are not dealing with issues within their own spheres.

One of the prominent advantages of the market is its high efficiency in allocating resources.

When a price is set by the market, it indicates the demand and supply for certain goods on a set time point. When the price rises, it must be a result of the demand outstripping supply. The price drops if demand is less than the supply.