Capitalists get rich --> people demand regulation on capitalists --> Capitalists get richer --> people demand more regulation on capitalists

Regulation destroys capitalists from the bottom up...and you are left with what we have.

Bastiat nailed it in his essay Capital and Interest (http://bastiat.org/en/capital_and_interest.html):

"Imagine, in a vast and fertile country, a population of a thousand inhabitants, destitute of all capital thus defined. It will assuredly perish by the pangs of hunger. Let us suppose a case hardly less cruel. Let us suppose that ten of these savages are provided with instruments and provisions sufficient to work and to live themselves until harvest time, as well as to remunerate the services of ninety laborers. The inevitable result will be the death of nine hundred human beings. It is clear then, that since nine hundred and ninety men, urged by want, will crowd upon the supports which would only maintain a hundred, the ten capitalists will be masters of the market. They will obtain labor on the hardest conditions, for they will put it up to auction, or the highest bidder. And observe this -- if these capitalists entertain such pious sentiments as would induce them to impose personal privations on themselves, in order to diminish the sufferings of some of their brethren, this generosity, which attaches to morality, will be as noble in its principle as useful in its effects. But if, duped by that false philosophy which persons wish so inconsiderately to mingle with economic laws, they take to remunerating labor largely, far from doing good, they will do harm. They will give double wages, it may be, but then, forty-five men will be better provided for, whilst forty-five others will come to augment the number of those who are sinking into the grave. Upon this supposition, it is not the lowering of wages which is the mischief, it is the scarcity of capital. Low wages are not the cause, but the effect of the evil. I may add, that they are to a certain extent the remedy. It acts in this way; it distributes the burden of suffering as much as it can, and saves as many lives as a limited quantity of sustenance permits.

Suppose now, that instead of ten capitalists, there should be a hundred, two hundred, five hundred -- is it not evident that the condition of the whole population, and, above all, that of the prolétaires, will be more and more improved? Is it not evident that, apart from every consideration of generosity, they would obtain more work and better pay for it? -- that they themselves will be in a better condition to form capitals, without being able to fix the limits to this ever-increasing facility of realizing equality and well-being? Would it not be madness in them to admit such doctrines, and to act in a way which would drain the source of wages, and paralyze the activity and stimulus of saving? Let them learn this lesson, then; doubtless, capitals are good for those who possess them: who denies it? but they are also useful to those who have not yet been able to form them; and it is important to those who have them not, that others should have them.

Yes, if the prolétaires knew their true interests, they would seek, with the greatest care, what circumstances are, and what are not favorable to saving, in order to favor the former and to discourage the latter. They would sympathize with every measure which tends to the rapid formation of capitals. They would be enthusiastic promoters of peace, liberty, order, security, the union of classes and peoples, economy, moderation in public expenses, simplicity in the machinery of Government; for it is under the sway of all these circumstances that saving does its work, brings plenty within the reach of the masses, invites those persons to become the formers of capital who were formerly under the necessity of borrowing upon hard conditions. They would repel with energy the warlike spirit, which diverts from its true course so large a part of human labor; the monopolizing spirit, which deranges the equitable distribution of riches, in the way by which liberty alone can realize it; the multitude of public services, which attack our purses only to check our liberty; and, in short, those subversive, hateful, thoughtless doctrines, which alarm capital, prevent its formation, oblige it to flee, and finally to raise its price, to the special disadvantage of the workers, who bring it into operation. Well, and in this respect is not the revolution of February a hard lesson? Is it not evident, that the insecurity it has thrown into the world of business, on the one hand; and, on the other, the advancement of the fatal theories to which I have alluded, and which, from the clubs, have almost penetrated into the regions of the Legislature, have everywhere raised the rate of interest? Is it not evident, that from that time the "prolétaires" have found greater difficulty in procuring those materials, instruments, and provisions, without which labor is impossible? Is it not that which has caused stoppages; and do not stoppages, in their turn, lower wages? Thus there is a deficiency of labor to the "prolétaires", from the same cause which loads the objects they consume with an increase of price, in consequence of the rise of interest. High interest, low wages, means in other words that the same article preserves its price, but that the part of the capitalist has invaded, without profiting himself, that of the workman. "