Free enterprise without government intervention is an oligarchy. None has ever existed, or nearly existed, without the common people rising up with weapons and overthrowing it.
There is another word I would use to describe it: Kleptocracy.
As Lord Acton said:
"Power tends to corrupt, and absolute power corrupts absolutely."
The common people rarely act in their own self-interest until things become unbearable. And this is true for a number of reasons mostly biological.
1. We are a species that crawled out of the cave by following alpha males. Made sense when we were potentially leopard food. Times have changed but we still want to follow a "lord" whether it is "lord Jesus Christ" or "Lord Bush" or "Lord Exxon." We kneel to those with authority ... even when wholly undeserved.
2. We are all basically self-interested. If we have a job ... the heck with the next guy or gal. Let them fend for themselves. I've got food so why should I care about some dolt who chooses to live in Botswana? I've got retirement so why should I care about the moron who believed their employer when they offered up a retirement plan that was never fully funded.
3. We are easily led by fear. To quote Hermann Goering, Nazi leader, at the Nuremberg Trials after World War II:
"Why of course the people don't want war ... But after all it is the leaders of the country who determine the policy, and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship ... Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is to tell them they are being attacked, and denounce the pacifists for lack of patriotism and exposing the country to danger."
Such things are only a surprise to those who don't study history.
