> Capitalism can both create and break hierarchies.

No, Capitalism can only reinforce hierarchies. Its core tenet is accumulation of capital, and thus power.

> corruption and incompetence are a great way to reach that goal.

Corruption is what happens when the capitalist class gets powerful enough to bend the rules. Incompetence is what happens when they figure out they can put a puppet in place and order him to bend the rules faster for them.