A government can prevent marketplace failure by doing something it has never done before. And that is to establish the paradoxical rules to freedom preemptively to enable freedom.
Just like traffic requires preemptive rules to enable the freedom to travel wherever you want, so do marketplaces need preeminent rules regardless of their “destination.”
Governments have failed to define, establish and implement those rules beforehand, and thus its marketplaces become a mess, just like the mess traffic without rules would become. With government’s arbitrage now only applied after the fact, with endless consequential lawmaking applied to infractions when they happen to bubble up to the surface of public scrutiny, and with much more extensive and a myriad of compounding violations hidden in complexity underneath.
Those rules of freedom must be parlayed to the long of our evolutionary integrity and strengthening, not towards the kind of wealth distribution breeding the richest men in the cemetery.