Report Income Inequality Is Killing Capitalism in House prices and the economy Posted November 23, 2012 Excessive power of Capital with respect to Labour as Labour went east, wage repression in the west with western demand maintained and brought forward through the action of massive credit expansion, giving more power to holders of Capital. Bugger all to do with the welfare state. Just true Capitalism in action. Ask Marx. No, because true capitalism is entirely self correcting firms can only get away with paying poverty wages because the state makes up the difference. And its entirely meaningless going back to the industrial revolution and claim that people lived in poverty because people were extremely poor and had extremely hard lives before capitalism transformed the World. What you have to look at is where we are now, thanks to capitalism. The poorest person in a capitalist society can now have the same life expectancy as the ruling elite in previous centuries provided they don't choose to eat, drink or smoke themselves to death.