The problem with capitalism in a representative democracy is that is almost impossible to maintain a perfectly sized government. If the government asks for too many taxes (on an extreme level) etc the market doesn’t function anymore. The “free market” needs some level of class difference to make profit attractive and keep people committed to their jobs. Because of these differences class conflict is created and through privately owned newspapers, corruption and short term economic gains regulation’s get liberalized. This results in wealth accumulation, the rich get richer and the poor get poorer. This then leads to the social and economic conditions that allow for the rise of the populist right.

As a European I can currently see this happening in all countries to which I pay attention (namely Germany, Netherlands and Britain).