Yeah, the slow and steady rise of stock prices across the board is in large part just an effect of increased money supply. Sure, lifting along with that passively is cheap and reliable way to make money. But since these types of passive investments care little about how efficiently the beneficiaries make use of these investments, there's the danger that inefficient companies end up with too much capital.
If that happens, you end up with resources such as labor being wasted. The efficient usage of the available resources is of course a much better indicator for the quality of the economy than the rise of stock prices.
> there's the danger that inefficient companies end up with too much capital
I can't see why this is any kind of danger. Companies end up subjectively with "too much capital" all of the time in this market without being part of a large index. Look at tesla.
If that happens, you end up with resources such as labor being wasted. The efficient usage of the available resources is of course a much better indicator for the quality of the economy than the rise of stock prices.