Why not both? It can be both a market failure and governmental failure, either because it allowed it or because it is applying bandage solutions that actually

Why not both? It can be both a market failure and governmental failure, either because it allowed it or because it is applying bandage solutions that actually do not work long term and not trying to figure out real ones. Alternatively it is bought by the actors causing the market failure. Just the exploitation of certain properties of the imperfect markets that actually exist is enough for the current situation to occur in absence of arbitrage. Market could be working exactly as modeled given a full model with big information inequality and low labour elasticity.