Regulations can be explained with a simple analogy:

Let's say economy is a team of runners. You want the runners to do well, ergo, run fast, win the race. But you cant let them cheat either. That's where logical, comprehensible regulations come in, the team members can't trip other runners, they can't stray of the track, etc... But there's the other kind of regulation, handicaps. You ask yourself: "why would anyone want to handicap the runners?" Well because they don't force them to halt their advance, they just slow down some members of the team, the team's not at full speed, but its under tighter control of the coach and the team members that aren't handicapped have bigger roles. These parts brokered a deal with the coach, or them doing well benefits him. The only real reason for regulations, beyond logical restrictions against the darker parts of human nature, is corruption. The coach won't hesitate to make the team lose if he can take some sort of benefit from it.

The government would destroy the economy instantly if it meant something beneficial to them. The looser their hold on the economy's neck, the better it does.