Government involvement can make the economy work better in a few key ways:

1. Fixing Market Problems:

   • Sometimes, markets don't work right because of issues like pollution. For example, pollution can create large costs, like $20 billion a year in health care costs in the UK. The government can help by making rules, like charging taxes for polluting, which helps to cover those extra costs.

2. Providing Public Services:

   • Some services, like streetlights and military protection, are tricky because they benefit everyone, even those who don't pay for them. The government can step in to provide these services, making sure everyone gets what they need. In the UK, the government spends about 40% of the total economy on these public goods.

3. Balancing Income:

   • The government can help reduce the gap between rich and poor through taxes and programs that support those in need. In the UK, the Gini coefficient, which shows income inequality, is about 0.34. This means there's significant inequality, but the government can help reduce it with the right programs.

4. Controlling Monopolies:

   • Rules against monopolies can help encourage competition among businesses. This competition usually leads to lower prices for consumers. For example, in the telecommunications industry, competition has helped reduce mobile phone costs by an average of 30% over the past ten years.