What are the government consequences of their actions in the market?

The government intervenes in the market economy to achieve various objectives such as consumer protection, promote equality, provide public goods, limit monopoly power and protect long term interest of the environment among others. This creates a business-friendly environment and a stable economy. However, government intervention in a market economy has consequences that include government failure, limited choice of products and impacts of personal freedom among others. Government failure is a term used to refer to how government intervention may cause some problems. Imposing tariffs to protect domestic industries and jobs may lead to a trade war where the economy would contract. This as well would reduce the inflow of goods in the economy which would limit the consumer's choice of products. This would also lead to a scarcity of products which would subsequently result in consumer exploitation. Government interventions have an impact on personal freedom, to reduce congestion or improve healthier living, the government restricts the movement of people and increases taxes on substances such as cigarettes which directly impact the freedom of individuals.