Most of the squeezing seems to come down to cronyism, which is a problem in just about any system. For example, the government pushing of subprime mortgages (at the urging of cronies) over-inflated housing prices, and then when the balloon burst, the cronies won again by having the government take over their debt. The question should primarily be how to restrain cronyism, and thereby provide the best outcome for the most people. Cronyism seeks to restrain trade in a way that is advantageous to only a few politically connected players.
A pure socialist system or a pure capitalist system would probably not have these issues, but then these are both unicorns.
Cronyism seems to be the primary way a socialist system operates. If you're politically connected, you tend to get best access to the goods and tend to be able use regulations to handicap competitors. This makes sense as in a socialist system, the people running the government are more actively engaged in the economy, and the tendency to reward friends and punish adversaries is hard to fight.
In a capitalist system, cronyism can also occur if players collude or if a player obtains a monopoly (or some other type of controlling position). In either case, the system then becomes distorted as players increasingly use coercion instead of mutually beneficial exchange. For example, Apple colluding to keep down the wages of workers.