Capitalism IS working as intended. The way it's intended to work just happens to suck for the overwhelming majority of people at this stage.
You ever play Monopoly? It's a game that was initially designed to teach people about the near-crippling effects of income disparity*. The game is actually always decided fairly early on - but the games can take hours despite the victor being clear after the first half-hour or so. The rest of the time the other players are just desperately struggling to survive as the dominant player sweeps up everything on the board and crushes everyone as slowly and painfully as possible with no chance of them making a recovery.
America right now is the equivalent of the third hour of Monopoly.
The difference is, in Monopoly all the players start equally. If it was a real representation of Capitalism, one player should start with double money, and a get out of jail free card. The other players only get 50 bucks for passing go.