>because how else do you explain a historically significant economic boom reducing the quality of life for a highly developed region
The new world wealth basically funded a(nother) couple hundred years of war in Europe.
There's a big blurry zone between incompetence and ideological motivation when it comes to bad policy and squandering resources. If you and everyone around you have a moral compass the points toward invading Britain is it really incompetence to try and pull it off? If you and everyone around you have a moral compass that points towards banning apartment buildings and legalizing petty theft then is it really incompetence to try and pull it off? When you're competently trying to do stupid things it's not incompetence, it's just plain old bad values.