> So yes, that is humanity, because this kind of thing is exactly what humans do: they curry for favors from government to get into protected positions to reap all the benefits.

FTFY. The problem you describe is a human problem that will happen in any system, capitalist, socialist or mix of the two. Power corrupts, absolute power corrupts absolutely. Capitalism simply provides power in a normal distribution proportional to wealth. Socialism provides power in a power law distribution and the head of that distributions constitutes absolute power.