One of the most critical but also most discussed points is the management and interference with externalities. These externalities can be positive but also negative. Usually, the positive externalities are managed by state-owned companies or very regulated public/private companies. Most of the negative externalities are usually mitigated by using laws, restrictions, and the introduction of standards. Problems with externalities can also involve a systematic “Market failure”. This occurs especially when individual incentives do not lead to rational outcomes for the group as a whole. These market failures often evolve to a certain point until the government intervenes and needs to regulate.
Governments can act as a leading driver for specific investments and even for industries. This only began recently in the middle of the twentieth century when government spending started to really pick up as a driver for the economy. In recent years we have seen massive investment in new technologies. One of the most pressing and most enduring issues in the political field. It involves regulating the market, securing minimum incomes, providing more “equality” but also ensuring that the incomes are distributed as near as possible. This also means taking from the rich and distributing it to the poor.
