The problem is that capitalism flies in the face of democracy, consensus and sustainability, they are mutually exclusive. Capitalists promote the illusion that democracy and unbridled (no regulation) capitalism can coexist and always champion the majority rule representative republic where ever they can't get total control of government (fascism). You have to negotiate/bribe a lot fewer people that way and you only have to win by one vote to disenfranchise the other 49.999% of the people.
Albert Einstein, an avowed socialist, said in 1949 that capital became concentrated in the hands of a few because of the competition of capitalists and growing economies of scale. He went on to say, "The result of this development is an oligarchy of private capital, the enormous power of which cannot be effectively checked even by a democratically organized political society. This is true since the members of legislative bodies are selected by political parties, largely financed or otherwise influenced by the private capitalists who for the all practical purposes separate the electorate from the legislature."
"The consequence is that the representatives of the people do not in fact sufficiently protect the interests of the underprivileged sections of the population. More over under existing conditions, private capitalists inevitably control, directly or indirectly the main sources of information (press, radio, television, education). It is thus extremely difficult and indeed in most cases quite impossible for the individual citizen to come to objective conclusions and make an intelligent used of his political rights."
The 150 Rule
Both anthropology and neurological studies put the number of people that you can "know" at 150 (Face Book doesn't count). This number is based on the evolutionary tribal structure that man lived under for millions of years that is hardwired into our brain and consequently is probably a realistic number for people to interact with in a meaningful way.
Want to understand why congress is so dysfunctional? As a result of the 2010 Census, Congressional Districts will have an ideal population to represent of 646,952. It's worse for the 100 Senators who represent a U.S. population of 307,006,550 . On top of that congress members have to work with the other 435 members. Makes it pretty difficult for your representative to know your needs even if he polls regularly, but I guarantee you he knows the needs of 150 lobbyists. As Ben Franklin said, "For a representative government to work you have to be able to get your hands around the neck of the representative."
The dysfunction of Capitalism
Indeed Capitalism's fatal flaws are many. The model depends on an ever increasing population who buy an ever increasing number of goods and services. It is a magical world where there are endless resources and the population can never become too big.
It is a world where everything becomes a commodity that can be bought, sold, or traded. And that means everything from politicians to wheat to electricity to healthcare to education to work. It means they want what they call a "free market" but in actuality, it is only a market that they can dominate. Despite cries against government regulation, most businesses use their influence in regulation to shut out small producers and limit the introduction of competitive innovations through increased regulation, protect and maximize profit return on infrastructure (think the oil & gas business), and shift more money to private hands to speculate with (think privatizing social security).