All the things that people expect to help can do the opposite, just a simple minimum wage can cause job losses not the hoped for higher wages. Force is a bad way to implement anything, if you could only eat your dinner with a pickaxe and hammer you would often go hungry Government is a blunt instrument, its best played lightly and should always avoid swamping the little start ups with endless red tape and demands.
It's not "Governments can bring instability", it's actually "Governments DO bring instability". Why? Because they own a money-printer and it goes BRRRRR anytime they want to, to bail out their buddies in the legacy banking and financial system. They also use the money-printer to increase government spending, which is inflationary. Plus the effects of money-printing, which causes inflation, is like a tax because printed money is used to fund the government at the expense of the currency to devalue.