You are correct, fixing an economy is much easier when individuals are fixed since when strong economies are built from educated, productive and even healthy individuals. When individuals are able to improve themselves and their skills, make a living from honest means and create real value, the economy would respond positively and grow naturally.
The government can go on to support the individuals by providing good infrastructures like good roads, startup grants and power to enable individuals thrive and that way, gradually the economy would be fixed. It is always the individuals that needs to be fixed first.
How do you make people healthy because it's not something government can control but can only provide a system to make it easy for everyone to have access. There are some sickness that are generic and common for all people, some are seasonal, some are as a result of social life and very difficult to treat. All these is not what government can eradicate completely but can provide a medium for everyone to access free medical treatment when they have one.
The truth is you can't fix the economy that easy even if everyone is educated. If by education, you mean going through the 4 walls of former education, that means everyone will want to work with what they study in school, that automatically means the government will have to provide job for everyone which is not possible. Don't forget, just because a person is educated doesn't mean they can be well behaved and mannered, people will do what they want regardless of their leave of education.