A questionable assumption undergirding this entire line of thought is that the universe can be finitely partitioned. Another assumption that could be considered a coin toss is that agents occupy and compete within a common size, space, and/or time scale. That there is no upper bound on need/“greed” or that there will still be multiple agents may seem a given within the current zeitgeist but again are far from guarantees. There are many other such assumptions but these are a few of the most readily apparent.
I don’t follow why “focus on fixing the current problem” doesn’t work, or at the very least why the anecdote you gave is sufficient to generalize a single failure incident into a universal axiom.
There could have been a variety of reasons why your seemingly reasonable fix wasn’t adopted as policy. Maybe your team didn’t fully understand your explanation, maybe they understood but held a grudge against you for unrelated reasons, etc. People are not perfectly rational which is why being persuasive is a skill in itself. Just because FCCC failed to fix an existing problem that one time doesn’t mean it’s the wrong approach for a benevolent ruler (especially one who has the unquestioning loyalty of his/her followers no?)
“Market efficiency” is a useful model but one shouldn’t confuse it with reality.