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I wish I had your confidence that capitalism can be tweaked into a fair system.
I honestly think the logical end point to capitalism is self-destructive extreme wealth disparity.
It works in cycles.
The last Guilded Age (think Roaring 20s) ended with the great depression. Which then triggered the creation of all the great economic policies the boomers enjoyed as children, which they've been dismantling since the 70s.
Once things get bad enough, (very nearly there now) the cycle will repeat.
Why do you think this, and what does cycle even mean in this context? If everything is just a cycle repeating, couldn't you argue we're also frozen in a non-cyclic lack of progression?
Those are very big questions. This Wikipedia Page is a good place to start.
The simple answer is, everything humanity does happens in cycles.
But you can think of it as roller-coaster passing through an infinite series of loops. We keep going forward in the long run. But but the repeating loops take us up and down, even upside down and backwards along the way. In every case, coming down each loop gives us the momentum to reach the next one.