I bet you the closer to that ideal you get the more corruption and monopolies you see. In fact I bet the closer to that ideal you get the lower the general standard of living is.
I rather doubt that your statements are accurate. In a true capitalist economy (which is what we are talking about here) people would be free of government interference and the government would only fulfill three roles, police (to protect against criminals), military (to protect against foreign invasion, and courts (to settle disputes using objectively defined laws). People that have the ability and desire to produce something would be free to do so without interference from the government (taxes, restrictive regulations, etc).
The freedom from government handouts could initially make it appear as though the standard of living was reduced, but once people realize that there is no handout coming then they are free to choose their path, to starve (which is against the human desire for life) or to apply their abilities to the acquisition of the necessities of life through work.
In truth, it is the opposite of your statement that is true. The farther you get from capitalism the more corruption and monopolies you see. China is a great example of this. They are far from a free economy, but is rife with corruption and state run monopolies are the norm.