So it does benefit all people in society. But it's also limited - when it operates in opaque markets (healthcare, defense), when there are anti-consumer incentives (insurance industry), or when the costs of an industry are born by society rather than the companies driving the industry (tragedy of the commons like in the energy sector with carbon emissions), then bad things happen. The governments role should be to identify these sectors where capitalism fails the citizens, and ensure that transparency is mandated, the costs of those industries are fully borne by the private sector, and/or that there are public alternatives to the private options that are aligned with consumer interests.
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