Capitalism breaks down when wealth is allowed to substitute for merit or the ability to produce, and where a lack of wealth impedes the ability of individuals t

Capitalism breaks down when wealth is allowed to substitute for merit or the ability to produce, and where a lack of wealth impedes the ability of individuals to succeed on merit. It also breaks down on public goods. The idea of capitalism is based on rational self interest, but rational self interest for individuals doesn't inherently lead to rational self interest for larger groups. Wealth also allows people to distort the political process away from representation of the interests of the majority. Society loses out, in terms of lower productivity, higher crime, increased prison costs, pollution, etc.