This isn’t quite correct. Technically I’d say it’s highly incomplete, and that incompleteness makes it wrong. For instance, a side effect is that only high pro

This isn’t quite correct. Technically I’d say it’s highly incomplete, and that incompleteness makes it wrong. For instance, a side effect is that only high productive investments will be made. That leads to high return on investment. Which leads to higher profitability. (Look up ROIC if you want a quick overview of the effect - it’s very well documented). What’s this leads to is a society which has a highly improving productivity, and therefore a highly improving quality of life. I’m not sure why some economists leave this effect out. It’s a very significant effect, and leads to a different set of outcomes when you include it in a model. Side note - using ROIC is a great filter for ranking companies to invest in. Over the longer term, companies with higher ROIC tend to significantly beat their competitors.