In what sense are markets useful, and in what sense do they need public subsidies and regulation?

As we’ve seen, markets are economic systems in which resources and goods are allocated through voluntary agreements between buyers and sellers who are motivated by self-interest.  Public policy has limited those agreements through such controls as zoning, safety regulations, aesthetic requirements, and prohibiting certain types of discrimination.  Subsidies to people with lower incomes let them participate in markets that otherwise would elude them.  Develop a framework, a set of guidelines, to establish where markets should be free to operate, and where they should be limited or subsidized.  Apply material from the course as well as items in the news such as the New York City mayoral race, plans in other cities to eliminate single-family zoning, gun control, or other issues that you think are important. 

three pages with sources to support your arguments and those sources cited with endnotes.
7-12 sources
Include outside sources from your own research
2 of the sources must be from our own material/books we’ve read:
    Downtown, Pete Hamill
    Triangle Fire, Leon Stein
    Little Pink House, Jeff Benedict
    Ecology of Fear, Mike Davis