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Government failure
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=== Economic crowding out === Crowding out is when the government over corrects the market failure leading to the displacement of the private sector investment. This involves an excess amount of spending in the public sector, excess increase in interest rates or excess increase in taxes all of which will decrease the public sectors borrowing demand from banks. This whole situation forces inefficiencies in the private sector and therefore shrinks, causing a market failure from a government failure.<ref name=":24">{{Cite journal |last=Kenton |first=Will |title=What Is the Crowding Our Effect Economic Theory |journal=Government Spending and Debt}}</ref>
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