It's all circular
Unbridled capitalism is similar to communism (at least the Russian version). The monopolists become like the Commisars. Competition is stifled and workers become slaves.
Government has a role to keep things fair and competitive. Innovation plays a big part. Remember that Gates and Jobs started in a garage less than 20 years ago.
Water seeks it's own level. There will always be those that become rich and powerful and those that work hard and never get more that a hundred miles from home. In the best of worlds the guy that works hard has a chance to be well fed and happy.