I think our mixed-economy of capitalism, socialism, and government regulation has a huge degree of homeostasis going for it. The "free" market is very useful for all the complexity that central planning could never handle. Government regulations and the rule of law keep the market honest. Social programs take the rough edges off capitalism, so it's reasonably humane.
The deterioration of the rule of law is the main reason my portfolio is all cash right now. I'm staying out of the market until normal order is restored, and I would not be surprised if a lot of other folks feel the same way. That may be why the stock market is so volatile now. The fall of Trump is one big Black Swan event waiting to happen.