Goverment Intervention

Government Intervention
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Institution

Government Intervention
In some cases, the government intervenes with some service provision industries or subsidizes the prices of some commodities with the intention of making such services or products affordable to every citizen; this is mainly intended to help the poor (Stossel, 2012). However, government interventions lead to some unintended consequences; this is because such measures interfere with the demand and supply balance which works best when it naturally adjusts itself as opposed to being dictated by the government.
In the healthcare industry, nationalized healthcare increases the number of people that can afford the services as a result of various government intervention programs. Hospitals, and related facilities, therefore, experience a rise in the number of people who require the services. In most cases, the government subsidizes the prices without investing in the resources necessary to cater for the increased number of patients; this may result in long queues or a drop in the quality of services provided (Post, 2017). Nationalized healthcare may reduce the amount of money in the healthcare industry which may hinder development; research conducted to pave the way for improvements requires a lot of funding. Nationalized healthcare may also reduce the money doctors make and therefore reduce the number of people attracted to the practice; this will reduce the number of doctors in the long-run.
Another example where government intervention has resulted in unintended results is the setting of minimum wages price floors which is a limit set to determine the lowest salary worker should be paid.

One of the effects of minimum wages is increased unemployment. Higher salaries may encourage more workers to provide labor (Economics Help, 2017). However, the companies may be unable to pay the high wages to a large number of employees which may result in companies letting go of some employees especially less productive workers.
References
Economics Help. (2017). Disadvantages of Minimum wages. Economicshelp.org. Retrieved 7 March 2018, from https://www.economicshelp.org/labour-markets/disadvantages-minimum-wages/Stossel, J. (2012). Price Ceiling — Rent Control Example from John Stossel. YouTube. Retrieved 7 March 2018, from https://www.youtube.com/watch?v=R0h8kfA4i_APost, F. (2017). Pros & Cons of Universal Health Care (THE COMPLETE LIST). Formosa Post. Retrieved 7 March 2018, from https://www.formosapost.com/pros-and-cons-of-universal-health-care/