Capitalism is what capitalism does. Name one "capitalist" economy strictly and exclusively defined by a "free market with citizens owning companies." None. There are no free markets. Governments always own some interest in companies, regulate and interfere in markets. Culture and morality always influence class and power hierarchies, and by extension economic systems. The real world is more complex than dictionary definitions allow.
Right, I agree that governments should stay out of people's business.
If you're saying that governments always mess with the free market, then I guess we're in socialist-capitalist economic systems..? Still better than just socialist.