This is true, but the problem is the government policy may consist of (wrongly, without evidence) saying "no, it isn't poisonous".

The usual question is "what if the industry in question has made campaign or PAC donations? what if it's located in an electorally marginal state?"

Or, these days, "what if the government is dependent for its support on a weird youtube-based cult that thinks that 5G causes viruses?"