The economy could get repaired through the proper involvement of both society and the government. Without negative or positive externalities, competitive markets tend to achieve allocative effectiveness and businesses, that profit-maximize will end up producing allocatively efficient quantities. Although society needs the government to achieve market efficiency, some government practices such as price control cause inefficiencies. To deal with inefficiencies, countries are restructuring their economies to capitalism through the eradication of price controls.

The government's involvement in the setting of prices prevents the market from attaining an equilibrium and the allocative price. To create and maintain a balance, the government could provide a legal structure. This is by giving sound policies at the market place and creating a suitable environment for business and keeping a competitive market through anti-monopoly laws that enhance competition. In the capitalist economy, the distribution of income is not fair.

To ensure equity in its delivery, practices like payment transfers, progressive taxes, and making market mediation would help achieve this. To avoid market failure that may occur as a result of the wrong production of particular goods, the government could intervene to prevent both the negative and positive externalities. It could be through the proper redistribution of resources to uphold the allocative efficiency.