Capitalism and Ruling Elitists (stream'd)

Capitalism and rational elitist rulers act on ground marked by outside influences, and neither are plausible in their most romantic independent forms. I will quote three resources at great length to present the argument.
1.) Immanuel Wallerstein, "The Modern World-System as a Capitalist World-Economy", p. 57
2.) Ayn Rand, various works cited accordingly
3.) an excerpt from G. Hossein Razi "An alternate Paradigm to State Rationality in Foreign Policy: The Iran-Iraq War" p. 690

"Suppose there really existed a world market in which all the factors of production were totally free, as our textbooks in economics usually define this--that is, one in which the factors flowed without restriction, in which there were a very large number of buyers and a very large number of sellers, and in which there was perfect information (meaning that all sellers and all buyers knew the exact state of all costs of production). In such a perfect market, it would always be possible for the buyers and to bargain down the sellers to an absolutely minuscule level of profit (let us think of it as a penny). and this low level of profit would make the capitalist game entirely uninteresting to producers, removing the basic social underpinnings of such a system."

(My inevitable remark and question to such a passage is that I don't understand. If a free-market would dissuade the interest for producers in a Capitalist market, wherein lies our status with "down-grading" where every firm has an equal footing--until one makes it cheaper or more attractive and comes out on top--would not a free-marker promote the innovative infrastructure that the government sets forth and towards.
"When I say "capitalism," I mean a full, pure, uncontrolled, unregulated laissez-faire capitalism--with a separation of state and economics, in the same way and for the same reasons as the separation of state and church." (Ayn Rand, “The Objectivist Ethics,” The Virtue of Selfishness, 33.
" Economically, leaving individuals free to pursue their own interests implies in turn that only a capitalist or free market economic system is moral: free individuals will use their time , money, and other property as they see fir, and will interact and trade voluntarily with others to mutual advantage." From: here)

"Furthermore, it (the assumption of rationality) allows one to consider all decision-makers to be alike. If they follow the rules, we need know nothing more about them. In essence, if the decision-makers behave rationally, the observer, knowing the rules of rationality, can rehearse the decision process in his own mind and, if he knows the decision-maker's goals, can both predict the decision and understand why the particular decision was made." (Verba 1961/1969: 225)

(in either case I think (therefore I am..) that both capitalists and "decision-makers" have every reason and vital fact at their finger tips and that it is precisely the use of such facts that will encourage innovative capitalists and just leaders--that both sustain a powerful position in the present, and encourage the desired outcome of the future.)

"One such virtue is rationality: having identified the use of reason as fundamentally good, being committed to acting in accordance with reason is the virtue of rationality.

Another virtue is productiveness: given that the values one needs to survive must be produced, being committed to awareness of the facts is the virtue of honesty." Again, here.