Government interference in the market mechanism can lead to economic inefficiency when it is applied to some private goods.
The more inaccurate the information gets, the lesser will be the economic coordination which will in turn lower satisfaction of wants.
Thus interference in the information conveyed by prices is destructive to economic development if misapplied or overused.
However, the market mechanism often cannot optimize for public goods, owing to problems such as the tragedy of the commons.
For example, modern highways have been good for economic development, but it has taken government planning and allocation to bring them into existence.