I think in theory yes, but heavy government investment can change how this works in practice.

No. Capitalism is supposed to be a rejection of this kind of central planning attitude, where someone sits in an armchair thinking about what kinds of products people should or should not have from a "global allocation perspective". I understand the market dynamics he's pointing towards, but it's not the kind of thing a CEO ought to be saying.

Capitalism is just another farce without good regulation.