For Free Market Capitalism to work as a social good it must encourage the equitable distribution of capital rather than the concentration of capital in very few hands.
Yes, in some ways it does make sense for individuals who demonstrate exceptional talent, contributions or even dumb luck to be rewarded with exceptional rewards. But for the most part we should be aiming for a society where meaningful capital investment decisions are made through the collective wisdom of hundreds of millions of people not just thousands of people.
If not then Capitalism will fail for the exact same reason that communism fails, because centralized control leads to corruption. Whether it be a king, or other dictatorship, business leader or elected leader with too much power. Self interests and incompetency will always lead to inefficiencies that are laid bare during times of natural disaster or other natural scarcity.
The beauty of the American model was that prosperity was not only shared by many based on merit, but that the merit was decided by our peers and not some oligarchs deciding from on high what people were worth. With much of our economy now stratified with various expensive credentialing legal or de facto requirements we are very much becoming the type of rigidly corrupt society which we tried to counter over two hundred years ago.
Capitalism is all too quickly devolving into a neo-fascist feudalism with just a few well connected, well bred, well educated people collecting the vast majority of the wealth, spending it foolishly to invest in their friends stupid "tech" or other start-ups which are often no more than fly by night flim-flam outfits with no lasting value or even profitability. People without even the merit that the elite define for themselves are getting rich in this way and it sets up a clear moral hazard where the elite do not suffer the consequences for the decisions they impose on others.
Governments are also in direct control of a vast portion of the economy with the same sorts of centralized pyramid style decision making being dominant. I support the Audit the Fed initiative, not because I think we can afford to put an end to loose monetary policy, but because we now have trillions of new dollars flowing into the economy through public policy, but that is creating another imbalance in society where the new money is trickling down from the top through banks and government rather than being distributed more equitably.
Much better would it be to distribute that trillion dollars in new money to every many woman and child in the US with each getting a check for $3,000 rather than funnel it through a few select banks and government programs with billionaires and millionaires taking cuts at each level as it trickles down into the real economy. Individuals themselves are usually the best decision makers about what their specific needs are.
With a very expensive education system funded with loans and other debt here in the US, increasing immigration will help some few lucky people at the expense of devaluing labor here in the US and undermining the education investments that people here have made in themselves to better their own lives. It will further social and economic displacements, but yet on paper will grow the economy, but not to the betterment of most Americans who will see their lives increasingly disrupted by forced (and expensive) migrations to find work.
"Better" Education is another false promise as the costs in the US for more and more education are being born by individuals and the result is that those with more wealth are able to better themselves and education becomes a barrier to entry for families without wealth rather than an enabler. Universities will always trumpet the few that they give special access to and enable, but as gate keepers to income growth they are doing as much harm as they are good while leaving millions of equally meritorious students behind. Education must be reformed to be more affordable and more applicable to the skills needed to enable people to do a variety of jobs in the future and not just tossed out as some sort of way to keep people busy spinning their wheels.
Wealthy people are the last people who should be asked what it takes to make the economy better for everyone. Their experience is usually in making the world work for themselves above others.
What we need is an honest government that limits individual wealth except as a means for capital investment. But we also need to put some outside limits on capital so that no individual can control more than say $50 or $100 million in capital except in concert with other investors. Combine with better controls and prioritization of government spending through more direct democratic reforms and maybe someday we can live in the type of society that we were told we live in.