A capitalist system is built on the idea that holders of capital actually deploy that capital, rather than horde it.

If capital holders don’t actually deploy that capital and compete with each other, then you don’t have a capitalist system anymore. You have a feudal system, where asset holders extract resources through rents, rather than capital deployment and risk taking.

Sorta depends on where one draws the line, but the line you are drawing, suggest there should be no government, so "system not working as intended"