EFFECTIVENESS OF GOVERNMENT INTERVENTIONS WHEN HUMAN BEINGS ARE NOT RATIONAL The financial crisis of 2008 made it difficult for businesses to rely on the market forces and deregulation. This tendency emerged in the early 1980s when Margaret Thatcher and Ronald Reagan proclaimed their conviction that markets were more significant determinants of freedom and prosperity than the government. In the1990s, Tony Blair and Bill Clinton put forward the idea of the market-friendly liberalism where they viewed markets as the main means of gaining the public good. However, in the contemporary economy, the proposition is questionable. The financial crisis was one of the indicators that markets have less ability to achieve efficiency in risk allocation. It also revealed that markets cannot achieve the desired level of ethics and morals, and there is a need to connect the market with government interventions. Competitive markets can result in socially inefficient allocations. One of the reasons ...