Extrapolating to the extreme? You're the one who spoke of an indictment of "western capitalism" in respect to a defense matter concerning Taiwan. This isn't an abstract scenario, these are real human lives you would be throwing away.

My point is that "western capitalism" isn't an ideological suicide pact. Letting important things fail because you want the system bound to some rigid of rules isn't an acceptable option. Rules exist to serve people, not the other way around.

And that's assuming that the government protecting a strategic industry from their own blunders is even breaking the rules. It isn't. It's one of the characteristic behaviors of "western capitalism". We're not talking about "Ayn Rand's capitalism", nor "Capitalism as Stego thinks it should work".