Government interventions

Write a response in a total of 500 words:


Government interventions into markets can sometimes succeed, but sometimes they make the situation worse. Explore 2 examples of government intervention that did not work. Explain why the intervention made things worse, and what could have been done differently to improve the situation.


Support your analysis by including:

o   What the situation was

o   What the intervention sought to solve

o   What happened

o   What might have been done differently


Submit your assignment.

Answer preview

On the other hand, another example of government intervention that failed in the market is mass transit. This form of transportation is increasingly becoming a government failure in multiple states around the world. Mass transit is experiencing continued decline despite efforts by the government to provide subsidies. The United States has recorded most transit riders in large urban areas such as Atlanta, Miami, and Los Angeles. The Mass transit subsidies began when Congress passed the Mass Transportation Act in 1964 (Hess and Lombardi, 2015). The intervention was sought to solve the losses that mass transit brings to the transportation industry due to its decline. The reduced trends in commuting via mass transit created dispersion of jobs towards automobile ownership. It has become a government failure because less than 3% of commuters use mass transit to work. The government should have directed the subsidies in automobile operations which have attracted massive users. For example, South Korea is banning the high-speed rail lines in the capital due to its inability to meet the trains’ marginal costs of operations.

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Government interventions