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One leads to the other. The more the government steps in the more the people lose power, that's why the founding fathers said to keep federal government small but we haven't done that and are heading down a scary slope.
I'll tell you another way that the people lose power: a few become billionaires while the rest of us are nowhere near so wealthy. Those grotesquely wealthy few become effectively above the law via the power of that wealth, and are also able to use that money to "buy" the politicians of the government so that they truly serve only the interests of the very wealthy. That's a scary slope associated with capitalism that we've already gone down to a large extent in the United States, and it can still get worse.
The only way that the poorer people can gain any power for themselves is by acting collectively, as they are able to do if they have a truly representative form of government, which the U.S. is not, although we claim we want to be. Such a governent can use various means, such as progressive taxation (taxing the rich to a greater degree than the poor), to try to limit the degree of wealth/power disparity possible in the system.
The desired goal should not be equality of outcome, people should still be able to amass wealth via hard work, genius, risk, etc., but there are limits that should be in place regarding how extreme of a wealth disparity is allowed. This is analogous to allowing private citizens to own handguns, but having laws against private citizens owning surface-to-air rockets and rocket launchers that could bring down airliners. There is such a thing as too much power to be allowed in the hands of individual citizens. You wouldn't want your next-door neighbor to own a nuclear bomb, would you?
The power of too much wealth in an individual's hands is dangerous to all of the rest of us in a similar way as too much weapon power in an individual's hands.
The best systems try to find a sweet spot between the authoritarianism of wealthy people taking too much power away from everybody else, and government authoritarianism oppressing people. People who try to convince us that big government is the only source of danger, and that pure capitalism is best, tend to be parroting the views of the billionaires, who own mainstream media, and who don't have your best interests at heart.
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