I don’t think it’s possible to have a system without some form of legitimized power, as people will always fill that vacuum. There will be a village elder or judge or peacekeeper or something, as those all fulfill necessary elements to a functioning society, and they will all come with some amount of legitimate authority.
Now, I suppose it might be fair to say that those “legitimate authorities” aren’t prescribed by the system, and therefore any corruption that follows is not the fault of the system. That seems a bit squishy to me, as those “legitimate authorities” are a natural outflow of society, and if the system does not have built in controls on those positions it is tacitly approving of any corruption.
But I’ll grant there may be a purely semantic argument that the system itself is immune to corruption, in the same way that a starving person doesn’t have to worry about food poisoning.
Can you provide a source for that definition of capitalism?
Genuinely asking, as it’s not the definition I have historically heard, and while I can find things that argue that what you are saying is an inevitable byproduct of unregulated capitalism, I can’t find anywhere that says those problems are a requirement for a system to be called capitalism.
As far as I can tell, if there is free trade and money/capital is owned and managed by private citizens, then that meets every formal definition of capitalism I have been able to find.
“Late stage capitalism” I think carries the connotations that you have outlined, but not capitalism in general.