To promote economic growth and strength, the government allows private markets to operate, but it also them.

Perfect private markets offer a lot of advantages from an economic perspective. First of all, they favor the consumer since the competition is fierce. Similarly, there is a search for new endeavors and innovations that can be assigned to private companies too. Finally, the drive for profits leads to many niche commodities being available, something that would not have been practical for the government to sustain. Nevertheless, if there is collusion between firms, the consumer is the first to lose. Also, some private companies involved in sectors of common interest (like rail companies) or sectors that need a minimum of safety standards (like mining companies) cannot be left unchecked. This is why the government also regulates private markets.