It makes some sense from realism perspective, monarchs which didn't have in mind nobility's interests tended to have a lot of accidents, but yes, I'd like to have full control over my state as absolutism. If I want free trade/Laissez-Faire/residency/jingoism combination, then let me have it.
Though what was the point of residency/moralism besides instigating rebels?
What did you find confusing?
If you are not a micro-management masochist, state capitalism is the borderline level of intervention.
If only my capitalists could realize that my country apparently doesn't have cotton and coal, but has fish, fruits and iron.