Government interventions, such as price controls, always lead to an increase in overall economic welfare by ensuring that essential goods are affordable for consumers.

While government interventions like price controls aim to make essential goods affordable, they do not always lead to an increase in overall economic welfare. Price controls can create shortages, as producers may not find it profitable to sell their goods at lower prices, leading to less supply in the market. For example, if the government sets a low price on bread to help consumers, bakers might produce less bread because they can't cover their costs. This can result in long lines and empty shelves, meaning that not everyone can get the bread they need. Therefore, while the intention is good, the outcome can sometimes harm the economy by disrupting the balance of supply and demand.