Why does government failure occur?

Government intervention to resolve market failures can also fail to achieve a socially efficient allocation of resources. Government failure is a situation where government intervention in the economy to correct a market failure creates inefficiency and leads to a misallocation of scarce resources. read more

Definition of government failure: This occurs when government intervention in the economy causes an inefficient allocation of resources and a decline in economic welfare. Often government failure arises from an attempt to solve market failure but creates a different set of problems. read more

Government failure occurs when a ruler forces people to do things that the people are otherwise unwilling to do and the result is inefficient and ineffective. Causes of government failure include: Economic Calculation Problem: The more government is involved, the more actual costs and actual demand is hidden. read more

In short, because government is the epitome of absolute power - control without boundaries or opposition. Normally the causal sociological structures in society serve to balance each other out in the long run. read more