The notion of more work = better isn't as straightforward as you make it. The article itself points out Chernobyl and Challenger as the result of pushing people. Even from a purely competitive, capitalistic POV, pushing people to work more has very real risks; risks that make the expected return negative the harder one pushes.
It is entirely possible that capping the number of hours worked – such that workers are rotated and therefore are always fresh/at their most efficient – is more optimal than driving them harder and harder in the name of competition.
We see this with Olympic/professional athletes whose coaches enforce mandatory rest days and optimal sleep. Certainly these athletes, if they just "worked harder" in the name of competition, would be harming themselves after a point despite putting in more hours.
This recovery period, while mostly physical in nature, also extends into the cognitive realm as well. Knowledge workers need recovery too.