Maybe, but hire and fire is also a great way to show the team that you don't know what you're doing as a hiring manager; not to mention how firing a team member, who may be incompetent but still well-liked, affects morale. Then, there is the problem where you fail to fire when you should. To me, this is just not a good way to build an effective team.

No one is saying you should hire and fire a ton of people, only that rejecting good candidates for most companies is not possible given how difficult it is to find them. Talk to any recruiter and they will tell you that finding good (not great, just good) candidates is often a struggle.

> hire and fire is also a great way to show the team that you don't know what you're doing

It's an expensive (painful) signal that you actually do know what you need to do and are capable of it.