It certainly does not make things worse because of its own failings. Yet the average text book provides an even more detailed definition of externalities. It certainly seems that way. Government intervention invariably has unintended negative side effects. Welfare creates welfare dependency.
Taxation destroys the incentive to create wealth.
Raising money to fund measures to create jobs destroys jobs. At least if the government discouragement has any effect. No need to go on and cover the impact of banning products, books, movies or other services people want to buy and supply. Clearly government intervention has unintended negative side effects. Can't the government just compensate those it hurts through its intervention.