Tighter monetary policy may harmfully shrink an economy it was only meant to slow in expansion. A forecast for the need for, say, electronic engineers in the next decade may bring a glut of engineering school graduates at that time. When a university predicts severe dorm overcrowding, that may cause students to seek alternative housing in such large numbers that numerous dormitory vacancies occur. Finally, incentives are indiscriminate and often attract people of dubious potential or dubious skill to an enterprise, as much as they attract those who could be most effective. The issue of whether to manage or channel labor at all, or, if so, how to channel or manage it most humanely, fairly, efficiently, and most effectively is extremely important for any group of people, whether a business or a country.
Capital is derived from labor.
The specific nature of the capital that is produced depends on labor's producing it. This is just as high-rise buildings meant more space on a given amount of supporting land. They can be relatively productive compared to other similar groups working in different ways to achieve the same ends. Less simplistically it is sometimes difficult to compare two society's who have radically different balances in the distribution of radically different amounts of end-product. Comparing the actual with an alleged potential is perhaps even more difficult, unless some reasonable, and reasonably safe, experimentation can be done.