"obstructed, suppressed, or warped"
All your verbs are pejorative when relating to government policy of course. How about "utilized, focused, energized"?
This is laughable. There are plenty of examples of bad public policy which steer market forces in the wrong way, and you complain about them all the time! There are also policies which produce the expected positive results from the market. What about targeted tax cuts? What about specific industry subsidies and other market incentives? What about anti-lead laws for crayons? etc etc etc etc.... You better back out of this one before you get too much egg on your face.
You are also wrong about artificial selection. Plants and animals can also be bred to be strong and sturdy, not needing coddling.