What is more efficient than the market mechanism?
From your question, I realize that it is not the market that is ineffective and inefficient but the normative values of trade that are violated by the culprit. The nature of free value, free value in a free market is less appropriate because economics is the subject's behavior, which is strongly influenced by the values and the environment that surrounds it. The behavior is not constant, but it is very dynamic and always changes according to the dynamics of the socio-economic order of society. Order of values of justice in the economic field is needed in order to support balance and equality (equality)
Even though economic norms have been introduced, because basically human nature is never satisfied, and there are always good vs. bad, an honest, fair, and wise supervisor or regulator is needed. And the need to separate sectors related to the interests of the lives of many people so as not to be privatized.
Is it possible to achieve a price balance in the market through aggregate supply and aggregate demand?
How the great depression is the evidence of the failure of the free market system? What happened in the great depression?
Simple answers to the early history of the role of the state began to be accepted again in the market mechanism is after the great depression. So I conclude that the free market system failed. If the free market system does not fail, of course, state intervention will not be used as a way to accelerate economic balance, which ends in a red carpet leading to the second world war.
Along with the development of the American industry in the aftermath of the first world war, there was a change in consumption lifestyle by means of credit which caused the production of luxury goods to increase. There was a lot of demand but not based on real money, this included over demand.
The stock market boom spurred, individuals and entrepreneurs aggressively invest their money in shares with the belief that buying shares is a guarantee of profits because of the relatively rising prices. Producers who want to get more money to invest ramp up, which in turn causes oversupply. Eventually, an imbalance occurs where the number of offers is higher than the amount of demand.
A free market plus a speculative boom in the stock market plus the practice of buying on margin plus a credit system with interest causes disaster.