capitalism as we used to have it, as it used to benefit average people, and lift them out of poverty, is pretty much dead.
What makes you assume this was ever the purpose and not just a side-effect?
It is very, very visible here in Germany. In fact, it's so transparent that you would have to be completely blind to not notice it.
Germany had very strong social systems and a good distribution of wealth. There were poor and rich, but very few very poor and very few crazy rich. Normal people could afford a house and a car on one salary from a regular job. Unemployment money was high enough that you wouldn't lose your home and pensions were so that retiring didn't mean becoming poor. Universal health care? We've had that always and it was adequate. Doctors were so good we exported them to other countries. Basically, a lot of people could actually afford those Mercedes and BMW cars we make.
After the fall of communism that all changed. Politics intentionally created a new low-cost labour market. Unemployment benefits dropped, lots of social benefits were dismantled, and when you are of working age, you are being bombarded with advertisement telling you to buy into this or that investment scheme because your pension will not allow you a good life anymore. All of that happened in less than 20 years. It started almost exactly after the re-unification, which provided a nice excuse for some measures ("it's so expensive, we need to save money").
What you learn from that is that all of this has been a front. The reason capitalism in Germany allowed for a good life was not inherent to capitalism. It was added benefits that were included because West Germany was too close to communist East Germany and the western allies needed to make sure the west german people would not look to East Germany and see something better, but the other way around (which, btw., worked).
Once the threat of people actually desiring communism disappeared, the facade came down. Now we see what capitalism is really about, has always been about. It just stopped pretending.