A healthy economy must first solve the contradiction between the scarcity of resources and the growth of human demand. In economic production, this kind of economy should be able to use the invisible hand of the market to form a competitive mechanism, give play to the efficiency of market resource allocation, prevent waste, improve production efficiency, reduce costs, expand production capacity, realize the improvement of productivity and meet people's needs through social division of labor and technological innovation. For example, Adam Smith gave an example of producing needles in The Wealth of Nations.
In addition, while allocating resources efficiently, market economy will bring about economic fluctuations, the gap between the rich and the poor, rising unemployment rate, inflation and other problems. Due to economic externalities, environmental problems are also problems that cannot be effectively solved by market economy. Therefore, a healthy economy must rely on the rule of law, give play to the regulatory role of the government, and give consideration to fairness and sustainable development with the visible hand of the government under the constraint of the rule of law.
It is a healthy and effective economy to give full play to the efficiency advantage of efficient market allocation with the invisible hand of the market and create a fair, environmentally friendly and sustainable social system through government regulation with the visible hand of the government.