It's kind of an accounting problem. What you really want is human happiness and abundant nature but doing some gardening and playing with the kids may produce happiness but no GDP whereas enlarging a chemicals plant to make even larger SUVs gives much GDP.
Trouble is it's hard to account for that kind of stuff but maybe we could make a flawed but functional accounting thing with AI?
A huge part of such stuff is deliberately hidden to avoid getting the government too involved in day to day lives.
Case in point: for a while we had an arrangement with our neighbour that we'll pick up their child from preschool and stay with her until her parents get home and in exchange they would prepare dinner for us.
No money exchanged hands, so no GDP generated, yet everyone's quality of life improved.
I guess a lot of the 'free market' stuff is also about avoiding too much government involvement. It tends to be a pain the neck when you have to fill tax returns and apply for permits.