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: Desislava Kamenova has give above a brilliant answer of your question
Government intervene in the economy for several reasons.
1. The government tries to combat market inequities through regulations, taxation and subsidies.
2. To promote general economic fairness.
3. Maximizing social welfare is one of the most common and best understand reasons for government intervention e.g breaking up of monopolies and regulating negative externalities like pollution.
4 Government may sometimes intervene in market to promote other goals such as national unity and advancement.
The Governments set the Laws and Regulations.
If it is a true non-corrupted government, its main aim should be to provide a good quality of life for the people.
