You're describing the operation of markets. Capitalism is independent of the operation of markets. Its definining characteristic is that the investment of capi

You're describing the operation of markets. Capitalism is independent of the operation of markets. Its definining characteristic is that the investment of capital in a human venture is treated preferentially to the investment of labor. Specifically, claims on the profit made by the venture first and foremost reside in invested capital, not invested labor. It's pretty trivial to imagine how capitalism could retain this characteristic even in the presence of planned economies and/or highly regulated markets.