No, inefficiency is the correct word.
Remember, the goal of capital is to get even more money, and be even more successful (in terms of market share owned, product pushed, total market cap, etc.)
We can start with two identical businesses, A and B.
Business A decides that things like worker satisfaction, a quality paycheck, a pension plan, etc-- are all essential to running a proper business.
Business B decides that those thing are for chumps, and takes most of the money that those kinds of projects would need, and reinvests it vigorously into the business in the form of advertising, directed sales marketing, etc.
Business B grows much faster than business A. The workers at business A are happier, but there are fewer of them compared to business B, because Business B is eating up all the market with its rapid growth. People fucking hate working for business B, but they are the one hiring, so that is where they work.
Several decades pass.
Business B is now a megacorp, and business A gets bought out by them.
Had business A also fucked its workers, like B did, they would be neck and neck in the market, barring some radical development by one or the other.
Allowing your employee to "live", instead of being essentially wage slaves to the company, is how you make an ineffective business. So sayeth the god of Mammon.
Then, there is the larger "whole economy" angle.
An economy is strong when lots of money is exchanging between lots of hands. When people start taking money out of that system (such as by putting it in a savings account), that money is not doing economic work. It is thus less efficient than money that is freely circulating, for many of the same reasons that the contrivance between businesses A and B suffers, only now it is international governments and their economies.
This is why the imperative to always "Make due with LESS than what you actually need" is ever present. Everyone else is doing the same thing, and if you fail to do that, your enterprise/government will fall behind the others.
But, then comes a major disaster, and the whole thing implodes, because it is over-taxed all the time AT THE BEST OF TIMES.
The worshipers of mammon feel that such catastrophes will never happen. Always do. They see that promise of ever greater, infinite wealth generation-- and consider the human expense justified. They never consider that the bottom can fall out from something as tiny as a virus, or as simple as a lack of rainfall-- It's been the connecting thread of every sprawling mega-civilization in recorded history.
Reelya is correct, that regulations are the way to mitigate it-- but the people in love with money **HATE** that, because they see opportunity if they can circumvent those regulations, and "the things those were meant to prevent can never happen again."
See also, why they repealed Glass-Stegal, and no Network Neutrality later--
*THEY NEVER LEARN.*