That doesn't seem to play out in practice for average Americans.

The companies profits primarily go to the capitalists not to average people.

That seems to apply to, for lack of a better term, consumerist goods and services like TVs and clothing. Which isn't nothing. However, it doesn't seem to apply to things like housing.

America's social safety net is already very weak and only getting weaker.

Same as the first point. The benefits of business success primarily goes to capitalists not workers.