That's pretty much how global economies worked till we discovered that irresistible drug - debt.
You're absolutely right that the "hidden costs" are not being accounted for. Things like workers' mental health, pollution implacts etc must need to be priced in. We'll need a new form of economics to achieve this.
Debt too, has a true cost, as we're starting to see as one person can't service it, the chain of events beyond start to unravel in all elements of the economy.
Very true