[TeMPOraL]

I don't know about inefficiency within the government, but I think most of regulating of markets happens because of it. As you've noticed, market's cost function is only an approximation of what we care about in aggregate. Regulation adds constraints and tweaks coefficients to keep the two goal functions aligned as much as possible. Which is hard, not least because we can't fully articulate what we care about, either individually or in aggregate.