Capitalism fails when capital, or the control of capital, as currently in our corporatist system, becomes too concentrated.
When the majority of real incomes are falling, aggregate demand fails. Duh! And when people have already borrowed too much, trying to keep up or make a quick buck like the rich folk do, increasing the monetary base and encouraging people to borrow more is a fool’s errand.
Private property is great, and encourages people to work, except when ownership becomes too concentrated, when they feel locked out.
For capitalism to survive, its leaders—the owner class—will have to adopt an ethos that, “For everyone to whom much is given, of him shall much shall be required.”
Otherwise the owner class invites revolution of one form or another.
Before that happens their greed causes a massive deflation that may very well expropriate themselves (see Comstock’s excellent deflation overview, which inspired these comments).
Democracy exists to allow people to make laws to fix broken systems.
Our democracy is also now broken.
Lot of work to do.