Final answer:
Governments are better at instilling egalitarianism in the economy as they can implement policies that address inequality, while the free market creates incentives that promote efficiency and innovation. A balance between market freedom and government rules is necessary for both equity and efficiency.
Step-by-step explanation:
By and large, governments are thought to be better able to instill egalitarianism in the economy more effectively than the devices of the free market. The free market, characterized by private property rights, incentivizes efficiency and growth because individuals who own resources and outputs are motivated to be more efficient and work harder. For instance, a family on a farm in a market economy benefits directly from additional effort and investment, leading to increased food production. Contrarily, in a command economy, additional effort by the family does not necessarily translate to more food or benefit due to the lack of private ownership.
An example of this can be seen in China, where family farms with less ownership of land were less inclined to invest in their land, leading to lower production. This indicates the significance of proper incentives which are typically more prevalent in market economies. Furthermore, achieving a balance between equity and efficiency is a complex task that involves balancing market freedom with government rules, rather than choosing an all-market or all-government approach exclusively.
In recognizing the complexities of economic organization, it is evident that while the market excels in areas such as efficiency and innovation, the government's role is crucial in promoting egalitarianism and addressing inequality, such as through investing in early childhood education. Therefore, the balance of market mechanisms and government intervention is key to creating a more equitable and efficient economic system.