If you start to evaluate direct government policies through the lens of long-term wealth creation, you add rationality to the process of deciding what is appropriate. Zero taxes are as bad as excessive taxes. There is a level of social spending that is important for long term wealth creation. If you have a lot of unemployed, homeless people on the streets with no opportunities, they will start breaking into the houses of the employed and taking away their assets. In the context of the long-term wealth creating model you can also evaluate government regulatory processes.
Some government regulation does have a rational basis.
Some city councilors think that any business that cannot deal with it should move to Quincy. Government should have no short-term role in economic development. Business markets are short term in nature. Businesses have to be able to respond quickly. The very type of long-term role that the government should be playing, the long ponderous analysis, the walk through all the various political constituencies, is the complete opposite of the strengths and analysis necessary to respond quickly to brief market opportunities.