No one said anything about quickly and cleanly until you introduced those words. If your argument is that the government tends to act more quickly than the market, I would be interested to see something backing that up.
For something like a car wash that doesn't really affect the people around it much, why would we need to regulate that? Oh no, there are more car washes than some people on Nextdoor think are necessary? Who cares?
If there is sufficient demand for car washes that all of them stay in business, then they'll stay, because the local area wants that many car washes. If they aren't binging in money, they'll close. Or just pay out to their employee and landlord indefinitely.
This is why the US has a few trillion in infrastructure debt.
"Oh no, the city had to put in a few million in pipes to supply additional water to an area that had a huge demand spike taking a long term bond on the issue... and now they are all out of business and earning no taxes to pay for the expense. Too bad we didn't actually plan for reasonable growth and resource usage. Hopefully someone can bail us out"
Tends to? Absolutely not, but nor is it required to? Though I'd definitely give "the government" some credit for net neutrality here; I heard the term in govt spaces well before it was much of an issue.
As for "doesn't affect the people around it."
Oh, sigh. So I'm pretty familiar with local governments and the work they do, and one thing is abundantly clear; very very many people have no clue "what affects them," until the thing they're used to changes.
A TON -- probably the overwhelming majority -- of local government work is "invisible stuff that the people never notice precisely because that local government is doing its job correctly."
For something like a car wash that doesn't really affect the people around it much, why would we need to regulate that? Oh no, there are more car washes than some people on Nextdoor think are necessary? Who cares?
If there is sufficient demand for car washes that all of them stay in business, then they'll stay, because the local area wants that many car washes. If they aren't binging in money, they'll close. Or just pay out to their employee and landlord indefinitely.