Government failure occurs when government intervention in the economy leads to inefficient outcomes, often failing to achieve the intended goals. This can happen due to misallocation of resources, lack of information, or bureaucratic inefficiencies. For example, when subsidies are provided to certain industries, they may distort market signals and lead to overproduction or underproduction. Another cause of government failure is the influence of special interest groups, which can result in policies that benefit a few at the expense of the broader public. This can create regulatory capture, where agencies prioritize the interests of specific industries over the general welfare, ultimately undermining the effectiveness of government actions.