Looking purely at local transaction costs neglects externalities and can lead to very bad outcomes. I don't see a huge difference between valuing interactions

Looking purely at local transaction costs neglects externalities and can lead to very bad outcomes. I don't see a huge difference between valuing interactions vs. having workplace safety standards or requiring that employers provide health insurance. Both of them raise transaction costs and eliminate at least some economic models because we as a society have decided we don't like the outcome. The sticking point is usually how to do it fairly. Edit: clarification of point