Earlier quoted context omitted.
You are mixing up capitalism with anarchy and chaos. Capitalism requires the rule of law and property rights. An unregulated market is one where any voluntary transaction can take place and no involuntary transaction takes place. It is not a voluntary transaction if I put a gun to your head and tell you to hand over your wallet, and a "market" in which that is allowed is not even a market. It is illegal for me to pay…
Except that's not true in the least. You say "no involuntary transaction takes place" because in that system, if the transaction takes place, then by definition it must be "voluntary", despite the existence of any coercion that may have occurred. In your unregulated system, you could have me work 20 hours a day, and consider it "voluntary" as long as I did it, ignoring the fact that I and my family would be out on th…
Capitalism is by no means a perfectly well defined system that you can deduce from a set of axioms. You can have a discussion about which property rights the government should enforce, such as whether it should enforce intellectual property. But certain systems are clearly fall outside of the bounds of what constitutes a free market, such as systems in which I am allowed to put a gun to your head to make you give me your wallet.